GM raises 2026 guidance on favorable Supreme Court tariff ruling

DETROIT - General Motors (NYSE:GM) reported first-quarter revenue of $43.6 billion and raised its full-year 2026 guidance following a U.S. Supreme Court decision on tariffs, according to a press release statement.

The automaker posted net income attributable to stockholders of $2.6 billion and EBIT-adjusted of $4.3 billion for the quarter ended March 31. Revenue declined 0.9% from $44.0 billion in the same period last year, consistent with the company’s full-year revenue decline of 1.3% to $185 billion over the last twelve months. The $70.3 billion market cap company trades at a P/E ratio of 23.7.

GM raised its full-year 2026 EBIT-adjusted guidance to $13.5 billion to $15.5 billion, up from the previous range of $13.0 billion to $15.0 billion. The revision reflects a favorable adjustment of approximately $0.5 billion resulting from the Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act. According to an InvestingPro tip, 8 analysts have revised their earnings upwards for the upcoming period, supporting the optimistic outlook.

The company now expects gross tariff costs of $2.5 billion to $3.5 billion in 2026, down from the original estimate of $3.0 billion to $4.0 billion. GM also adjusted its net income attributable to stockholders guidance to $9.9 billion to $11.4 billion, compared to the prior range of $10.3 billion to $11.7 billion.

First-quarter EBIT-adjusted increased 21.9% to $4.3 billion from $3.5 billion a year earlier. The EBIT-adjusted margin expanded to 9.7% from 7.9%. GM North America posted EBIT-adjusted of $3.7 billion with a margin of 10.1%. The company’s gross profit margin stands at 10.7%, and InvestingPro assigns GM a "Good" financial health score of 2.68 out of 5. Investors should note that the stock currently appears overvalued based on InvestingPro’s Fair Value analysis.

Wholesale vehicle sales totaled 899,000 units in the quarter, down from 912,000 units in the prior-year period. Total vehicle sales across all markets were 1.3 million units.

GM’s Board declared a quarterly cash dividend of $0.18 per share, payable June 18, 2026, to shareholders of record on June 5, 2026. The company has raised its dividend for 4 consecutive years, with the current dividend yield at 0.92%. For deeper insights into GM’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.

In other recent news, General Motors has been active on several fronts. The company is recalling nearly 33,000 Corvette vehicles due to a software issue that could impact the detection of rear turn signal light failures. This recall affects certain models from the 2025 and 2026 model years, including various Corvette variants. Meanwhile, General Motors Financial has successfully closed a $1.4 billion senior notes offering at a 4.75% interest rate, with net proceeds expected to be around $1.39 billion. These funds will be used for general corporate purposes.

On the analyst front, Deutsche Bank has upgraded General Motors from Hold to Buy, raising its price target to $90. This upgrade is based on the company’s operational resilience and potential for a multi-year re-rating. Conversely, Jefferies has lowered its price target for General Motors to $90 from $97, maintaining a Hold rating due to a projected slow start to 2026. Wolfe Research has identified General Motors as having a favorable setup for the upcoming earnings season, alongside Ford and BorgWarner, despite recent volatility in the auto sector.

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