Key Highlights
- 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 Wall Street projections
- The automaker increased its full-year adjusted EBIT forecast to a range of $13.5B–$15.5B from the prior $13B–$15B
- A favorable Supreme Court decision on Trump-era trade levies reduced GM’s projected tariff expenses by approximately $500 million
- Shares of GM climbed more than 4% during premarket hours after the announcement
General Motors delivered impressive first-quarter results, surpassing Wall Street expectations by a significant margin while boosting its annual financial outlook, aided by a favorable legal decision that lowered its tariff obligations.
The Detroit-based automaker posted adjusted earnings of $3.70 per share for Q1, substantially exceeding analyst projections of $2.62. Quarterly revenue totaled $43.62 billion, aligning with forecasts despite a modest decline from the previous year’s $44 billion.
Adjusted earnings before interest and taxes (EBIT) reached $4.25 billion during the quarter, representing a 22% increase compared to the same period last year. The adjusted EBIT margin improved to 9.7%, up from 7.9% in the year-ago quarter.
Net income attributable to shareholders totaled $2.6 billion, declining 5.7% year-over-year.
The North American division generated adjusted EBIT of $3.7 billion with a margin of 10.1%, improving from $3.3 billion and 8.8% in the comparable prior-year quarter. Operations in China contributed equity income of $165 million, a substantial jump from just $45 million twelve months earlier.
High Court Decision Reduces Trade Levy Burden
The improved guidance was partially driven by a U.S. Supreme Court ruling that invalidated specific tariffs imposed under the International Emergency Economic Powers Act. This legal outcome provided GM with a one-time favorable adjustment totaling roughly $500 million.
Consequently, the company 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 automaker incurred $3.1 billion in tariff-related costs throughout 2025.
For the complete fiscal year, GM elevated its adjusted EBIT outlook to between $13.5 billion and $15.5 billion, an increase from the prior range of $13 billion to $15 billion. The company’s adjusted earnings per share guidance now sits at $11.50–$13.50, with a midpoint of $12.50 that exceeds the analyst consensus of $12.24. Free cash flow projections remained steady at $9 billion–$11 billion.
GM shares surged over 4% in early premarket action following the earnings release.
Electric Vehicle Deliveries Show Weakness
First-quarter vehicle sales in the United States dropped 9.7% year-over-year to 626,429 units. The automaker attributed this decline partially to exceptionally strong performance in Q1 2025, before tariff implementation, combined with weather-related disruptions during the early months of this year.
Despite the sales decline, GM maintained its position as the top-selling automaker in the United States. The Chevrolet Silverado pickup alone generated more than 128,000 deliveries, representing over 20% of the company’s total domestic volume.
Electric vehicle sales contracted 19% during the quarter. Nevertheless, GM stated it retains its position as the second-largest EV seller in the American market.
The company recorded $3.0 billion in non-cash EV-related charges and $5.6 billion in cash charges spanning from the second half of 2025 through Q1 2026. During the first quarter alone, GM absorbed $2.6 billion in cash charges.
The automaker indicated it anticipates “material, but significantly smaller” EV-related charges throughout 2026.
The board of directors approved a quarterly dividend of $0.18 per share, scheduled for payment on June 18, 2026.
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