Key Takeaways
- General Motors delivered Q1 adjusted EPS of $3.70, crushing the consensus estimate of $2.62
- Quarterly revenue reached $43.62 billion, meeting Wall Street expectations
- Company elevated full-year adjusted EBIT forecast to $13.5B–$15.5B from prior $13B–$15B range
- Supreme Court decision on Trump-era trade measures reduced GM’s tariff exposure by approximately $500 million
- Shares jumped more than 4% in pre-market activity after the announcement
General Motors delivered an impressive first quarter performance, significantly exceeding Wall Street expectations while benefiting from a favorable legal decision that lowered its tariff obligations.
The Detroit automaker posted adjusted earnings of $3.70 per share for the quarter, crushing analyst projections of $2.62. Quarterly revenue totaled $43.62 billion, aligning closely with forecasts despite representing a modest decline from the $44 billion recorded in the year-ago period.
Adjusted operating income (EBIT) for the three-month period reached $4.25 billion, marking a robust 22% increase compared to the prior year. The company’s adjusted EBIT margin improved substantially to 9.7%, up from 7.9% in last year’s corresponding quarter.
Net income attributable to shareholders totaled $2.6 billion, representing a 5.7% year-over-year decrease.
The North American division contributed adjusted EBIT of $3.7 billion with a margin of 10.1%, improving from $3.3 billion and 8.8% in the comparable 2025 period. Income from Chinese joint ventures climbed to $165 million, a significant jump from just $45 million the previous year.
Court Decision Delivers Major Tariff Savings
The improved guidance received a significant boost from a United States Supreme Court ruling that invalidated certain trade levies implemented under the International Emergency Economic Powers Act. This judicial decision provided GM with a one-time positive adjustment of roughly $500 million.
Consequently, the automaker now anticipates gross tariff expenses of $2.5 billion to $3.5 billion for 2026, down from its previous projection of $3 billion to $4 billion. The company incurred $3.1 billion in tariff-related costs throughout 2025.
For fiscal 2026, GM increased its adjusted EBIT projection to a range of $13.5 billion to $15.5 billion, up from the prior $13 billion to $15 billion outlook. Adjusted earnings per share guidance now stands at $11.50 to $13.50, with a midpoint of $12.50 that exceeds the analyst consensus of $12.24. The company maintained its free cash flow forecast at $9 billion to $11 billion.
Shares surged over 4% in early trading following the earnings release.
Electric Vehicle Deliveries Show Continued Weakness
First quarter US vehicle deliveries declined 9.7% year-over-year to 626,429 units. The company pointed to an exceptionally strong Q1 2025 performance before tariff implementation and adverse weather conditions early this year 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 sales dropped 19% during the quarter. However, GM emphasized it remains the second-largest EV 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 in Q1 alone totaled $2.6 billion.
GM indicated it anticipates “material, but significantly smaller” EV-related charges throughout 2026.
The board approved a quarterly dividend of $0.18 per share, scheduled for payment on June 18, 2026.
