GM earnings top estimates, company raises profit forecast after Supreme Court ruling reduces tariff costs

General Motors (GM) on Tuesday morning reported first quarter profits that topped estimates and raised its full-year forecast as the company’s tariff exposure decreased more than expected.

GM posted Q1 revenue of $43.62 billoin against $43.68 billion estimated, down slightly from the $44 billion reported a year ago. The company reported Q1 adjusted EPS of $3.70 against $2.62 expected and $2.78 a year ago. Its adjusted EBIT (earnings before interest and taxes) came in at $4.253 billion, up 22% compared to a year ago.

GM also raised its full-year 2026 EBIT adjusted guidance due to a favorable adjustment of approximately $500 million resulting from the Supreme Court decision nullifying some of President Trump’s tariffs. The tariff adjustment also improved its North America region margins.

For the full year, GM now expects:

• Adjusted EBIT of $13.5 billion-$15.5 billion (prior $13 billion-$15 billion)

• Adjusted earnings per share of $11.50-$13.50 (prior $11 – $13)

• Adjusted automotive free cash flow of $9 billion-$11 billion (unchanged)

Its gross tariff costs for the year are expected to fall in a range of $2.5 billion-$3.5 billion, down from a prior $3 billion-$4 billion forecast. GM reported $3.1 billion in tariff expense last year.

“We have solid momentum in our core operations : We maintained overall sales leadership in the U.S. and Canada. We led the U.S. industry in full -size pickup sales and share, with 42% of the market, and we were #1 in Fleet, including Commercial deliveries. In addition , we were #2 in EVs with growing market share, and #1 in Canada,” GM CEO Mary Barra said in her shareholder letter.

GM previously said it plans to invest $10 billion-$12 billion annually in 2026 and 2027, including roughly $5 billion to expand US manufacturing capacity, in order to lift domestic production to 2 million units a year.

Earlier this month, GM said Q1 US sales fell 9.7% from a year ago to 626,429 vehicles, though the automaker held onto its US sales crown thanks to a strong March, which helped claw back ground lost during a winter-storm-disrupted January and February.

GM said that year-over-year comparisons were skewed by an exceptionally strong Q1 last year, before President Trump’s tariffs went into effect on April 1.

GM grew its share in full-size pickups in the quarter, with the Chevrolet Silverado accounting for more than 128,000 deliveries — over 20% of GM’s total US volume — while full-size SUV sales for the Tahoe, Suburban, and GMC Yukon remained strong.

GM’s EV sales continued to decline, falling 19% in the quarter. GM reported it remained the No. 2 EV seller in the US despite the declines.