General Motors (GM) stock is currently at an all-time high after the company reported a strong fourth quarter earnings report and announced a stock buyback. GM’s sales for the quarter were reported at $45.29 billion, compared to expectations of $45.37 billion, down 5.1% year-over-year. The company reported fourth-quarter adjusted earnings per share (EPS) of $2.51, compared to expectations of $2.28, and adjusted earnings before interest and taxes (EBIT) of $2.84 billion, compared to expectations of $2.77 billion.
The most notable update from General Motors is its announced $6 billion stock repurchase plan. “[The fourth quarter results]translate into profitability that drives our cash flow engine, which allows us to continue to allocate capital in a shareholder-friendly way,” GM Chief Financial Officer Paul Jacobson said in an interview with Yahoo Finance. Jacobson added: “We remain one of the best value stocks in terms of free cash flow yield, and we still have a double-digit free cash flow yield. We feel this stock is undervalued.”
Additionally, GM CEO Mary Barra said last quarter that the MSRP tariff offset announced by the White House last summer helped boost this year’s profit outlook. GM said its full-year tariff exposure was $3.1 billion, compared with the $3.5 billion to $4.5 billion it had originally expected.
Following 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 the company also raised its outlook for the remainder of 2026. The most expensive stock on Wall Street was GM stock, which rose to $110, a 26% increase from its current price.
