GM Surpasses Q1 Earnings Predictions, Boosts 2026 Outlook Following Tariff Victory
General Motors significantly outperformed Wall Street’s first-quarter earnings predictions on Tuesday, April 28. The company reported adjusted earnings per share of $3.70, a marked 41% increase over analyst estimates of $2.62. In light of this, the automaker has also raised its full-year 2026 profit guidance.
The Detroit-based company reported revenue of $43.62 billion, maintaining a steady year-over-year rate. Meanwhile, adjusted EBIT saw a surge of 21.9% to $4.25 billion, with margins expanding to 9.7% from 7.9% in the previous year. A significant factor in these robust results was a $500 million benefit resulting from a U.S. Supreme Court decision to terminate and refund certain tariffs imposed under the Trump administration.
GM has raised its 2026 adjusted EBIT guidance to a range of $13.5 billion to $15.5 billion, an increase of $500 million from previous expectations. Adjusted EPS guidance has also been raised, now standing at $11.50-$13.50, up from $11.00-$13.00. “Our EBIT-adjusted of $4.3 billion surpassed our expectations even after excluding a $500 million tariff adjustment,” stated CEO Mary Barra in her shareholder letter.
The company’s North American operations led the performance with an adjusted EBIT of $3.66 billion, an 11.4% increase year-over-year. In addition, GM declared a quarterly dividend of $0.18 per share, payable on June 18, 2026. Despite these strong results, the company incurred a $1.1 billion charge related to the pullback of its electric vehicle program.
Source: CNBC