GM raises 2026 guidance amid $500 million tariff refund, topping Wall Street's earnings expectations

DETROIT — General Motors raised its 2026 guidance after significantly beating Wall Street's first-quarter earnings expectations following a roughly $500 million benefit from the U.S. Supreme Court decision to terminate and refund certain levies paid under President Donald Trump's tariffs.

Here's how the company performed in the first quarter, compared with average estimates compiled by LSEG:

Earnings per share: $3.70 adjusted vs. $2.62 expectedRevenue: $43.62 billion vs. $43.68 billion expected
GM's Emergency Economic Powers Act tariff benefit was largely expected by Wall Street analysts, but the exact amount it would receive was unknown. It is part of $160 billion in potential refunds to companies after the levies were ruled illegal in February by the Supreme Court in a 6-3 decision.  

The automaker has not received IEEPA refunds yet, but expects to and decided to book it during the first quarter.

The Detroit automaker changed its 2026 guidance to include adjusted earnings before interest and taxes of between $13.5 billion and $15.5 billion, or $11.50 to $13.50 a share, up $500 million, or 50 cents per share, from its previous expectations; net income attributable to stockholders of $9.9 billion to $11.4 billion, up from $10.3 billion to $11.7 billion; and automotive operating cash flow between $16.8 billion and $20.8 billion, up from between $19 billion and $23 billion.

Without the tariff adjustment, the company's first-quarter adjusted earnings would have still beat expectations and been up about 7.5% compared to a year ago. GM CEO Mary Barra in a letter to shareholders said the quarter surpassed the company's expectations.

GM's 2025 first-quarter results included $44.02 billion in revenue, net income attributable to stockholders of $2.78 billion, and adjusted earnings before interest and taxes of $3.49 billion.