GM Stock Surges 9% Despite $7.6B EV Write-Down on Strong Cash Flow and Buybacks

General Motors (GM) shares surged 9% on January 27, 2026, adding over $7 billion in market capitalization after reporting robust financial results overshadowing a $7.6 billion write-down on its electric vehicle business. The automaker reported $12.7 billion in adjusted EBIT for 2025, at the high end of guidance, and $10.6 billion in adjusted automotive free cash flow. The EV charges, primarily from restructuring and asset impairments, include $4.6 billion in expected cash settlements mostly in 2026. GM's shareholder returns were highlighted by $6 billion in stock buybacks in 2025 and a 20% dividend increase to $0.18 per share. The company guided 2026 adjusted EBIT of $13 billion-$15 billion and free cash flow of $9 billion-$11 billion, emphasizing continued investment in profitable trucks, SUVs, and software services including OnStar and Super Cruise.