General Motors delivered an impressive first quarter performance, significantly surpassing Wall Street’s earnings projections while boosting its annual forecast. The positive results were amplified by a favorable Supreme Court decision that substantially lowered the company’s tariff obligations.
The Detroit-based automaker posted adjusted earnings per share of $3.70 for the quarter, crushing the analyst estimate of $2.62 by more than a dollar. Quarterly revenue totaled $43.62 billion, matching expectations despite representing a modest decline from the $44 billion recorded in the comparable period last year.
The company’s adjusted EBIT reached $4.25 billion, marking a 22% increase compared to the prior year quarter. The adjusted EBIT margin improved considerably to 9.7%, up from 7.9% during the same three-month period a year earlier.
Stockholders’ net income totaled $2.6 billion, reflecting a 5.7% year-over-year decrease.
The North American division generated adjusted EBIT of $3.7 billion with a 10.1% margin, improving from $3.3 billion and an 8.8% margin in the year-ago quarter. Operations in China contributed equity income of $165 million, a substantial jump from just $45 million in the previous year’s first quarter.
The enhanced guidance received a significant boost from a U.S. Supreme Court ruling that invalidated specific tariffs imposed under the International Emergency Economic Powers Act. This legal decision provided GM with a one-time positive adjustment of roughly $500 million.
Following this development, the automaker revised its gross tariff cost projection for 2026 downward to $2.5 billion–$3.5 billion from the previous range of $3 billion–$4 billion. The company incurred $3.1 billion in tariff expenses during 2025.
For the complete fiscal year, GM elevated its adjusted EBIT outlook to $13.5 billion–$15.5 billion from the prior range of $13 billion–$15 billion. The adjusted EPS forecast now stands at $11.50–$13.50, with a midpoint of $12.50 that exceeds the Street consensus of $12.24. The company maintained its free cash flow guidance at $9 billion–$11 billion.
Shares of GM stock advanced over 4% in premarket activity following the earnings announcement.
First quarter US vehicle deliveries dropped 9.7% year-over-year to 626,429 units. Management pointed to an exceptionally strong first quarter in 2025, before tariff implementation, along with adverse weather conditions early this year as contributing factors.
Despite the decline, GM maintained its position as the leading US automaker by sales volume. The Chevrolet Silverado pickup alone generated over 128,000 deliveries, representing more than 20% of the company’s total domestic sales.
Electric vehicle sales fell 19% during the quarter. Nevertheless, the company stated it retains its position as the second-largest EV manufacturer in the United States.
GM recorded $3.0 billion in non-cash EV-related charges alongside $5.6 billion in cash charges spanning from the second half of 2025 through the first quarter of 2026. Cash charges totaling $2.6 billion were recognized in Q1 alone.
The company indicated it anticipates “material, but significantly smaller” EV-related charges throughout 2026.
The board of directors authorized a quarterly dividend payment of $0.18 per share, scheduled for distribution on June 18, 2026.
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