General Motors (GM) Stock Surges 4% on Strong Q1 Earnings and Updated Forecast

Key Takeaways

Table of Contents

General Motors delivered Q1 adjusted earnings of $3.70 per share, surpassing the consensus estimate of $2.62
The company reported quarterly revenue of $43.62 billion, meeting analyst projections
Annual adjusted EBIT forecast increased to a range of $13.5B–$15.5B from the prior $13B–$15B range
Supreme Court decision on legacy 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 that exceeded Wall Street’s expectations, bolstered by improved operational performance and favorable legal developments that lowered its tariff obligations.

$GM (General Motors) #earnings are out: pic.twitter.com/XPCq65Zkha
— The Earnings Correspondent (@earnings_guy) April 28, 2026

The Detroit-based automaker posted adjusted earnings of $3.70 per share for the first quarter, significantly outpacing the Street’s $2.62 forecast. Quarterly revenue reached $43.62 billion, aligning with expectations despite a modest decline from the $44 billion recorded in the year-ago period.

The company’s adjusted EBIT surged 22% year-over-year to $4.25 billion. Meanwhile, the adjusted EBIT margin improved to 9.7%, up from 7.9% in the comparable quarter last year.

General Motors Company, GM

Net income attributable to shareholders totaled $2.6 billion, representing a 5.7% decrease compared to the previous year.

GM’s North American operations generated adjusted EBIT of $3.7 billion with a margin of 10.1%, improving from $3.3 billion and an 8.8% margin in the prior year. The company’s China equity income climbed to $165 million from just $45 million a year earlier.

Tariff Relief From High Court Decision

The improved guidance was partially driven by a recent U.S. Supreme Court ruling that invalidated specific tariffs imposed under the International Emergency Economic Powers Act. This decision provided GM with a one-time positive adjustment worth 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 costs during 2025.

For fiscal year 2026, GM elevated its adjusted EBIT outlook to between $13.5 billion and $15.5 billion, up from the earlier range of $13 billion to $15 billion. The adjusted EPS forecast now stands at $11.50–$13.50, with a midpoint of $12.50 that exceeds the analyst consensus of $12.24. Free cash flow projections remained at $9 billion–$11 billion.

Shares gained more than 4% in premarket activity following the earnings release.

Electric Vehicle Deliveries Under Pressure

First-quarter U.S. vehicle deliveries dropped 9.7% year-over-year to 626,429 units. The company cited an exceptionally robust first quarter in 2025, which preceded tariff implementation, along with weather-related disruptions earlier this year.

Despite the decline, GM maintained its position as the top-selling automaker in the United States. The Chevrolet Silverado alone contributed over 128,000 deliveries, representing more than 20% of the company’s total domestic volume.

Electric vehicle sales fell 19% during the quarter. Nevertheless, GM stated it remains the second-largest EV seller in the U.S. market.

The manufacturer 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 for Q1 alone totaled $2.6 billion.