Key Takeaways
- General Motors delivered Q1 adjusted EPS of $3.70, crushing the Street’s $2.62 forecast by more than a dollar
- Quarterly revenue reached $43.62 billion, meeting analyst projections
- The company boosted its full-year adjusted EBIT outlook to a range of $13.5B–$15.5B from the prior $13B–$15B range
- A favorable Supreme Court decision on Trump-era trade policies slashed GM’s projected tariff expenses by approximately $500 million
- Shares climbed more than 4% during premarket hours after the announcement
General Motors delivered an impressive first quarter performance, significantly exceeding Wall Street’s earnings projections and upgrading its annual forecast, bolstered by a judicial decision that lowered its tariff obligations.
The Detroit automaker posted adjusted quarterly earnings of $3.70 per share, crushing the analyst consensus estimate of $2.62. Quarterly revenue totaled $43.62 billion, aligning with Wall Street’s expectations, though representing a modest decline from the $44 billion recorded in the comparable period last year.
The company’s adjusted EBIT for the quarter reached $4.25 billion, marking a 22% increase compared to the prior year. Adjusted EBIT margin improved to 9.7%, up from 7.9% in the year-ago quarter.
Net income allocated to shareholders totaled $2.6 billion, representing a 5.7% year-over-year decline.
The North American operations delivered adjusted EBIT of $3.7 billion with a 10.1% margin, improving from $3.3 billion and 8.8% in the previous year’s quarter. Equity income from Chinese operations totaled $165 million, a substantial jump from $45 million a year earlier.
High Court Decision Reduces Tariff Burden
The guidance upgrade received a significant boost from a U.S. Supreme Court ruling that invalidated specific tariffs imposed through the International Emergency Economic Powers Act. This judicial determination provided GM with a favorable one-time adjustment worth roughly $500 million.
Consequently, the automaker now anticipates gross tariff expenses ranging from $2.5 billion to $3.5 billion for 2026, revised downward from its previous projection of $3 billion to $4 billion. The company incurred $3.1 billion in tariff costs during 2025.
For the complete fiscal year, GM elevated its adjusted EBIT guidance to a range of $13.5 billion–$15.5 billion, up from the previous $13 billion–$15 billion range. Adjusted earnings per share guidance was revised to $11.50–$13.50, with a $12.50 midpoint that surpasses the analyst consensus of $12.24. The free cash flow outlook remained steady at $9 billion–$11 billion.
Shares of GM stock surged over 4% in premarket trading immediately following the earnings release.
Electric Vehicle Deliveries Show Weakness
First quarter US vehicle deliveries dropped 9.7% year-over-year to 626,429 units. The automaker cited an exceptionally robust first quarter in 2025, which occurred before tariff implementation, along with adverse weather conditions in early 2026 as contributing factors.
Despite the decline, GM maintained its position as America’s top-selling automaker. The Chevrolet Silverado pickup alone generated over 128,000 deliveries, representing more than 20% of the company’s total domestic volume.
Electric vehicle deliveries fell 19% during the quarter. Nevertheless, GM maintains it remains the second-largest electric vehicle seller in the United States despite the downturn.
The automaker recorded $3.0 billion in non-cash EV-related charges and $5.6 billion in cash charges spanning the second half of 2025 through the first quarter of 2026. Cash charges totaling $2.6 billion were recognized in Q1 alone.
The company anticipates “material, but significantly smaller” EV-related charges throughout 2026.
The board approved a quarterly dividend distribution of $0.18 per share, scheduled for payment on June 18, 2026.
