Citigroup stock is soaring Wednesday after the big bank topped earnings expectations and unveiled a massive stock buyback program. Here's why that's important.

Citigroup (C) reported fourth-quarter results that exceeded expectations, sending shares higher in pre-market trading Wednesday. Citi's net income for the fourth quarter was $2.86 billion, up from a loss of $1.

Shares of the third-largest U.S. lender were last up 5% in premarket trading on Wednesday after Citigroup said its board has authorized a new share repurchase program. "2024 was a critical year and our results show our strategy is delivering as intended and driving stronger performance in our businesses,

The megabank reported achievements in several areas, but lowered its 2026 expectations for a profitability metric that investors have been closely watching.