General Motors Adjusts 2026 Outlook Amid Tariff Relief and Mixed Q1 Performance

General Motors reported a mixed start to 2026, characterized by a decline in reported net income and total revenue, offset by strong adjusted earnings and an improved outlook for the full fiscal year. The company's revised guidance reflects a strategic shift in expectations driven by legal developments. While reported earnings projections were trimmed, GM lifted its adjusted EPS and EBIT targets, citing a favorable U.S. Supreme Court decision regarding tariffs paid under the International Emergency Economic Powers Act. This legal victory is expected to reduce gross tariff costs to a range of $2.5 billion to $3.5 billion for the year. For the first quarter, net income attributable to stockholders fell 5.7% to $2.63 billion, with earnings per share dropping 15.9% to $2.82. However, the company saw operational strength in its adjusted metrics; EBIT-adjusted surged 21.9% to $4.25 billion, pushing margins to 9.7% from 7.9% a year earlier. Total revenue saw a slight decline of 0.9% to $43.62 billion, with automotive net sales edging down to $39.35 billion. Looking ahead to fiscal 2026, GM now expects adjusted EPS between $11.50 and $13.50, an increase from the previous guidance of $11.00 to $13.00. Conversely, reported net income attributable to stockholders was lowered to a range of $9.9 billion to $11.4 billion. In addition to the financial results, the company's Board has declared a quarterly cash dividend of $0.18 per share, which will be payable on June 18 to stockholders of record as of June 5.