General Motors (GM) Stock: Why Shares Jumped 5% After Reporting a $3.3 Billion Loss

TLDR

• GM reported a $3.3 billion net loss in Q4 2025 due to $7.2 billion in writeoffs related to its struggling electric vehicle business and China restructuring.
• The automaker’s adjusted operating income of $2.8 billion beat Wall Street expectations of $2.75 billion for the quarter.
• GM announced a 20% dividend increase and a new $6 billion share buyback program to return capital to shareholders.
• The company guides for $13-15 billion in 2026 adjusted earnings, with projected EPS between $11-$13 for the year.
• GM shares jumped more than 5% in pre-market trading following the earnings announcement and shareholder return initiatives.

GM posted a $3.3 billion net loss for the fourth quarter of 2025. The loss came from massive writeoffs related to the company’s troubled electric vehicle operations.

The Detroit automaker took $7.2 billion in special charges during the quarter. Most of these charges stemmed from scaling back its EV business and restructuring operations in China.

Despite the headline loss, GM’s core business performed better than expected. The company delivered $2.8 billion in adjusted operating income for Q4. Wall Street had forecast $2.75 billion.

General Motors Company, GM

Investors responded well to the results. GM shares climbed over 5% in pre-market trading on Tuesday morning.

The automaker earned $2.51 per share on an adjusted basis. Analysts had expected $2.20 per share. Revenue came in at $45.29 billion, slightly below the $45.8 billion estimate.

Shareholder Returns Take Center Stage

GM management announced plans to reward investors with increased cash returns. The board approved a 20% bump in the quarterly dividend, raising it from 15 cents to 18 cents per share.

The company also authorized a fresh $6 billion share buyback program. This continues GM’s strategy to reduce outstanding shares and support its stock price.

Outstanding shares dropped to 904 million at the end of 2025. That’s down from 995 million a year earlier and 1.2 billion at the end of 2023.

CEO Mary Barra said the company remains in a strong position to return capital to shareholders. This comes even as GM reevaluates its product lineup away from all-electric vehicles.

Looking Ahead to 2026

GM provided guidance for the current year that matched analyst expectations. The company projects adjusted earnings between $13 billion and $15 billion for 2026.

Earnings per share should land between $11 and $13. The consensus estimate sits at $11.73 per share.

The automaker plans to spend $10 billion to $12 billion in 2026. This includes continued evaluation of its product portfolio following the EV pullback.

For full-year 2025, GM reported net income of $2.7 billion and adjusted EBIT of $12.7 billion. These results came in about $2 billion below original projections made before automotive tariffs were implemented.

The company managed to grow its U.S. market share in 2025. This happened during a turbulent year that included responding to tariff changes and restructuring its EV strategy.

The $7.2 billion in special charges included $357 million for legal matters related to OnStar and airbags. Another $133 million went to its defunct Cruise robotaxi unit. The company also recorded $5 million for its recent headquarters move.

GM pre-announced $7.1 billion of these charges earlier in January. The additional $133 million related to Cruise and other items pushed the total higher.

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