General Motors Raises 2026 Profit Outlook as SUV and Pickup Demand Supports Earnings

General Motors reported improved fourth quarter earnings and raised its profit outlook for 2026, supported by continued demand for its pickup trucks and SUVs. The company also announced a higher dividend payout and a new share buyback programme. 

While near term challenges remain from higher costs and EV market pressures, GM maintained its strategic focus on long-term growth.

Quarterly Earnings Performance

GM posted adjusted pre-tax earnings of $2.84 billion for the fourth quarter, reflecting a year-on-year increase compared with the same period last year.

Earnings per share stood at $2.51, exceeding market expectations. The growth was driven largely by solid sales of pickup trucks and sport utility vehicles.

2026 Profit Outlook

The company expects adjusted core profit in the range of $13 billion to $15 billion for 2026. The midpoint of this range is above current market forecasts, indicating management’s confidence in demand for its key vehicle segments.

Cost and Currency Pressures

GM indicated that higher commodity prices, foreign exchange movements and ongoing shortages of computer chips are likely to weigh on profitability in the year ahead. These factors are expected to reduce profits by between $1 billion and $1.5 billion during 2026.

Electric Vehicle Business Update

Net income during the quarter was affected by a $6 billion charge linked to a scaling back of electric vehicle plans, following policy changes and softer demand. A significant portion of the charge relates to cancelled contracts and supplier settlements tied to earlier production expectations.

Despite this, GM reaffirmed its commitment to its EV strategy and stated that cost reduction initiatives would remain a key focus as the market evolves.

Dividend and Share Buyback Plans

The company increased its quarterly dividend payout by 20% and approved a new $6 billion share repurchase programme. GM completed a similar buyback programme during 2025, reflecting its ongoing approach to shareholder returns.

Read More: Moody’s Sees India–EU Trade Pact Supporting Manufacturing and Investment.

Conclusion

General Motors’ latest results highlight continued strength in its core vehicle segments and a more optimistic outlook for 2026. At the same time, the company faces cost pressures and shifting dynamics in the EV market, which may influence performance in the coming quarters.

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