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 $3.3 billion net loss for the fourth quarter of 2025. The loss came from massive writeoffs related to the company’s troubled electric vehicle operations. #GeneralMotors$GM, Q4-25. Results: Adj. EPS: $2.51 Revenue: $45.3B Net Loss: $3.3B Results impacted by $7.2B in charges from EV capacity realignment and policy shifts on incentives and emissions. pic.twitter.com/gjmkU383FY — EarningsTime (@Earnings_Time) January 27, 2026 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...