GM’s ability to balance profits, Trump politics pays off for investors

DETROIT — General Motors is proving to be a star tightrope walker when it comes to balancing its profits, vehicle portfolio and political whiplashing under the Trump administration.

The Detroit automaker’s 2025 results propelled GM’s stock Tuesday to a new record high as the company beat earnings expectations and projected an even better 2026, including a 20% increase in its dividend and a new $6 billion stock buyback authorization.

Those kinds of results are nothing new for GM, but Wall Street analysts say the company is drawing more investor interest than its peers amid the U.S. auto industry’s slowing sales, political turmoil and tariffs.

“GM stands out for strong execution, proven resilience, high earnings quality (i.e. strong [free cash flow] amid inventory de-stock), capital allocation and a unique NA Truck Franchise sporting far better fundamentals vs. traditional passenger auto,” TD Cowen analyst Itay Michaeli wrote in a Tuesday investor note.

Shares of GM are up more than 70% during the past year, with multiple Wall Street analysts raising their price targets to record levels after earnings, including TD Cowen, which raised its target Tuesday by 10% to $122 per share.

GM is also increasingly standing out from its closest U.S. rivals Ford Motor and Stellantis when it comes to earnings performance and capital execution, according to many analysts.

“We rate GM Overweight for its best-in-class execution amongst North America–based auto OEMs, consistent management team and strategy, and strong product portfolio allowing for above-industry pricing and margin,” JPMorgan analyst Ryan Brinkman wrote in a Tuesday investor note.

Ford’s shares are up more than 35% during the past year, but its adjusted earnings forecast for the year is roughly half of what GM reported for 2025. Its adjusted free cash flow expectations also are billions below GM’s in recent years.

U.S.-listed shares of Stellantis, which is going through a major restructuring, are off roughly 27% over the past year. The company’s results have largely disappointed Wall Street recently, as it attempts to focus on a U.S. turnaround.

GM’s 2025 results included results included $2.7 billion in net income attributable to stockholders, or earnings per share of $3.27; adjusted earnings before interest and taxes of $12.7 billion, or $10.60 per share; and adjusted automotive free cash flow of $10.6 billion.

Part of what’s set GM apart has been its ability to navigate through political uncertainty under U.S. President Donald Trump.

The biggest challenge for the automotive industry as a whole has been increased costs due to tariffs and inflation. GM expects tariffs will cost it $3.5 billion and inflation will be a $1.25 billion,…