Detroit — general motors raised its 2026 outlook after significantly beating Wall Street’s first-quarter revenue expectations after benefiting about $500 million from the U.S. Supreme Court’s decision to cut off and return some levies paid under President Donald Trump’s tariffs.
GM stock fell about 4% in early trading Tuesday. Shares closed Monday at $77.96 per share, down less than 1% on the day, but down 4.1% year-to-date.
Here’s how the company performed in the first quarter compared to average estimates compiled by LSEG:
Earnings per share: $3.70 adjusted vs. $2.62 expected Revenue: $43.62 billion vs. $43.68 billion expected
GM’s tariff benefits from the International Emergency Economic Powers Act were largely expected by Wall Street analysts, but the exact amount GM would receive was unclear. This is part of the $160 billion in refunds that will be returned to businesses after the Supreme Court ruled in a 6-3 decision in February that the levy was illegal.
The automaker has not yet received a refund from IEEPA, but it expects to receive one during the first quarter and has decided to book it. President Trump told CNBC last week that he would “gratefully remember” U.S. companies that have not asked for tariff refunds.
Excluding IEEPA tariffs, GM still expects total tariff costs from other levies to be $2.5 billion to $3.5 billion this year, a downward revision from an earlier estimate of $3 billion to $4 billion.
The Detroit automaker raised its 2026 adjusted profit outlook to $13.5 billion to $15.5 billion, or $11.50 to $13.50 per share, to reflect the tariff rebate, an increase of $500 million, or 50 cents per share, from its previous forecast.
Because of the special charge, the company lowered its forecast for net income attributable to shareholders this year from $10.3 billion to $11.7 billion to $9.9 billion to $11.4 billion, and its auto operating cash flow from $19 billion to $23 billion to $16.8 billion to $20.8 billion.
The company recorded $1.1 billion in special charges related to its all-electric vehicle withdrawal during negotiations and payments with suppliers. As a result, EV-related special expenses will amount to $7.6 billion in 2025 results.
This charge affects GM’s net income but not its adjusted results. Automakers typically exclude “special items,” or one-time charges, from their adjusted financial results to give investors a clearer picture of their core ongoing business operations.
Excluding one-time charges, the automaker earned $3.70 per share.
GM Chief Financial Officer Paul Jacobson told CNBC’s Phil LeBeau on Tuesday that the company did not raise its auto free cash flow forecast of $9 billion to $11 billion due to uncertainty about the process and timing of tariff refunds.
Without the tariff adjustment, the company’s first-quarter adjusted profit would still have exceeded expectations and would have increased about 7.5% from a year ago. GM CEO Mary Barra said in a letter to shareholders that the quarter exceeded the company’s expectations.
“There is solid momentum in our core business,” Barra said in the letter. “As we move forward, we are confident that this will continue to differentiate GM and support long-term value creation for our owners.”
GM’s adjusted profit for the first quarter, including the benefit of IEEPA, increased 21.9% year over year to $4.25 billion. Unadjusted net income for the first quarter was $2.71 billion, down 5.19% year over year.
Regionally, the North American business continued to lead the company, with adjusted profit increasing 11.4% year over year to $3.66 billion. Businesses in China and other international markets also made gains.
“I think the North American team did a great job of managing the market while really facing inventory issues throughout the quarter,” Jacobson said Tuesday on CNBC’s “Squawk Box.” “I also think we were a little bit ahead on the cost side. I think that’s really where the beat came from this quarter.”
GM’s first-quarter sales were in line with Wall Street expectations, but were down about 1% from a year earlier.
GM’s first quarter 2025 financial results included sales of $44.02 billion, net income attributable to shareholders of $2.78 billion, and adjusted earnings before interest and taxes of $3.49 billion.
Correction: GM’s 2026 net income attributable to stockholders outlook has been revised downward from $10.3 billion to $11.7 billion, and its automotive operating cash flow forecast has been revised downward from $19 billion to $23 billion. A previous version incorrectly documented this move.
