On the Dash:
- GM expects adjusted core earnings of $13 billion to $15 billion in 2026, exceeding analyst expectations.
- Strong demand for pickups, SUVs, and services continues to support margins and market share growth.
- GM raised its dividend by 20% and authorized a new $6 billion share buyback amid strong cash generation.
General Motors expects stronger profitability in 2026, driven by continued demand for pickup trucks and SUVs, disciplined pricing, and shareholder returns, despite ongoing tariff pressures and a strategic pullback in electric vehicles.
The Detroit automaker reported fourth-quarter and full-year 2025 results that exceeded expectations, while outlining a 2026 outlook that calls for adjusted core earnings between $13 billion and $15 billion. GM’s guidance came as the company navigates rising commodity costs, lingering supply constraints, and an evolving regulatory environment under the Trump administration.
In North America, the automaker delivered its highest U.S. market share since 2015, marking a fourth consecutive year of gains. The company achieved that growth with low inventory levels, restrained incentive spending, and strong transaction prices. GM expects North American pricing to remain flat to slightly higher in 2026.
Pickup trucks and large SUVs remain central to GM’s earnings outlook. Sales of full-size pickups and premium SUVs supported fourth-quarter performance and continue to anchor margins. The company expects regulatory rollbacks on fuel efficiency and emissions requirements to further support production of its most profitable vehicles. The automaker estimates it could save up to $750 million by avoiding purchases of regulatory compliance credits.
GM also reported strong growth in software and services. OnStar reached a record 12 million global subscribers in 2025, driven by rapid Super Cruise adoption and fleet subscription expansion. These technology-driven services remain a key part of the company’s long-term margin strategy.
At the same time, GM continues to manage challenges tied to tariffs and electric vehicles. The company expects $3 billion to $4 billion in tariff-related costs in 2026, partially offset by production shifts and cost controls. GM also recorded a significant fourth-quarter loss tied to EV restructuring as demand softened following the expiration of federal tax credits.
Despite lower expected EV volumes, GM said it remains committed to electric vehicles and expects to reduce EV-related losses by up to $1.5 billion in 2026 through cost reductions.
Strong cash generation allowed GM to raise its dividend by 20% and authorize a new $6 billion share repurchase program. The company expects U.S. production to rise toward 2 million units annually in the coming years as more manufacturing shifts onshore.
