Key Takeaways
- The automaker delivered Q1 adjusted EPS of $3.70, surpassing analyst projections of $2.62
- Quarterly revenue reached $43.62 billion, aligning with market forecasts
- The company elevated full-year adjusted EBIT outlook to a range of $13.5B–$15.5B from the previous $13B–$15B
- A favorable Supreme Court decision on historical tariffs reduced GM’s projected tariff expenses by approximately $500 million
- Shares climbed more than 4% during premarket hours after the announcement
General Motors delivered strong first-quarter results, surpassing Wall Street expectations and elevating its annual forecast, aided by a judicial decision that lowered its tariff obligations.
The Detroit-based automaker posted Q1 adjusted earnings per share of $3.70, significantly above the analyst consensus of $2.62. Quarterly revenue totaled $43.62 billion, meeting market expectations despite a modest decline from the $44 billion recorded in the prior-year period.
Adjusted EBIT for the three-month period reached $4.25 billion, representing a 22% increase compared to the same quarter last year. The adjusted EBIT margin improved to 9.7%, up from 7.9% during the corresponding period.
Net income attributable to stockholders totaled $2.6 billion, representing a 5.7% decrease year-over-year.
The North American division generated 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 China operations reached $165 million, a substantial increase from $45 million in the prior-year period.
Favorable Court Decision Reduces Tariff Burden
The improved guidance received support from a U.S. Supreme Court ruling that invalidated certain tariffs imposed under the International Emergency Economic Powers Act. This judicial outcome provided GM with a one-time positive adjustment of roughly $500 million.
Following this development, the automaker now anticipates gross tariff costs ranging from $2.5 billion to $3.5 billion for 2026, a reduction from its previous projection of $3 billion to $4 billion. The company incurred $3.1 billion in tariff expenses 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 earlier $13 billion–$15 billion forecast. Adjusted EPS guidance now stands at $11.50–$13.50, with a midpoint of $12.50, exceeding the analyst consensus of $12.24. The company maintained its free cash flow projection at $9 billion–$11 billion.
Shares advanced more than 4% in premarket activity following the earnings release.
Electric Vehicle Deliveries Show Decline
First-quarter US vehicle deliveries decreased 9.7% year-over-year to 626,429 units. GM cited the comparison against an exceptionally robust Q1 2025, which preceded tariff implementations, along with adverse weather conditions during the early months of the year.
The company maintained its position as the leading US automaker by sales volume. The Chevrolet Silverado alone generated over 128,000 deliveries, representing more than 20% of GM’s total domestic volume.
Electric vehicle sales dropped 19% during the quarter. The automaker affirmed its position as the second-largest electric vehicle seller in the United States despite the decline.
The company recorded $3.0 billion in non-cash EV charges and $5.6 billion in cash charges spanning H2 2025 through Q1 2026. Cash charges for Q1 alone amounted to $2.6 billion.
GM said it expects “material, but significantly smaller” EV-related charges in 2026.
The board approved a quarterly dividend of $0.18 per share, with payment scheduled for June 18, 2026.
