Shares in General Motors (GM) stock now sit at an all-time high after the company issued a strong Q4 earnings report and announced a stock buyback. For the quarter, GM reported revenue of $45.29 billion compared with the $45.37 billion estimated, a drop of 5.1% compared with last year. The automaker posted Q4 adjusted earnings per share (EPS) of $2.51, vs. $2.28 expected, on adjusted earnings before interest and taxes (EBIT) of $2.84 billion vs. $2.77 billion estimated.
The noteworthy update from General Motors was its announced $6B stock buyback plan. “[Q4 results] turn into the profitability that drives the cash flow engine. That allows us to continue to allocate capital in a way that’s friendly to shareholders,” GM CFO Paul Jacobson said in an interview with Yahoo Finance. Jacobson added, “We’re still one of the most valuable stocks out there in terms of free cash flow yield; we still have a double-digit free cash flow yield. We feel like the stock is undervalued.”
Furthermore, last quarter, GM CEO Mary Barra said the MSRP tariff offsets announced by the White House last summer allowed it to boost profit guidance for the year. GM said its full-year tariff exposure came in at $3.1 billion, compared with the $3.5 billion to $4.5 billion it projected earlier.
After the earnings, GM is trading near the top of its 52-week range and above its 200-day simple moving average. The stock rose 9% on Tuesday, and forecasts for the rest of 2026 have been raised. The highest on Wall Street has GM stock rising to $110, which would mark a 26% climb from current prices.