DETROIT — General Motors has updated its 2026 forecast after significantly exceeding Wall Street’s initial earnings forecasts for the first quarter, thanks to approximately $500 million from the U.S. Supreme Court ruling to cancel and refund specific tariffs imposed under President Donald Trump’s administration.
The company’s performance in the first quarter, contrasted with average projections from LSEG, is as follows:
- Earnings per share: $3.70 adjusted vs. $2.62 anticipated
- Revenue: $43.62 billion vs. $43.68 billion expected
GM’s tariff benefit under the International Emergency Economic Powers Act was largely anticipated by Wall Street, but the precise sum it would receive remained unclear. It is part of a total of $160 billion in potential reimbursements to companies after the Supreme Court ruled the tariffs unlawful in February with a 6-3 decision.
The automaker has yet to receive IEEPA reimbursements, but plans to and chose to account for it during the first quarter.
The Detroit-based manufacturer revised its 2026 forecast to reflect adjusted earnings before interest and taxes ranging from $13.5 billion to $15.5 billion, or $11.50 to $13.50 per share, an increase of $500 million, or 50 cents per share, from prior estimates; net income attributable to shareholders between $9.9 billion and $11.4 billion, up from $10.3 billion to $11.7 billion; and automotive operating cash flow projected between $16.8 billion and $20.8 billion, raised from $19 billion to $23 billion.
Excluding the tariff adjustment, the company’s adjusted earnings in the first quarter would still have exceeded expectations and marked an increase of about 7.5% from a year prior. GM CEO Mary Barra noted in a letter to shareholders that this quarter exceeded the company’s forecasts.
GM’s first-quarter results for 2025 showed revenues of $44.02 billion, net income attributable to shareholders of $2.78 billion, and adjusted earnings before interest and taxes of $3.49 billion.
