GM shares surge after strong earnings, forecast hike

General Motors raised its 2026 outlook after significantly beating Wall Street’s first-quarter earnings expectations, supported by a roughly $500 million benefit linked to a U.S. Supreme Court decision ending and refunding certain levies paid under President Donald Trump’s tariffs.

GM shares rose about 5% in premarket trading, News.Az reports, citing CNBC.

The stock closed Monday at $77.96 per share, down less than 1% for the day and down 4.1% year-to-date.

For the first quarter, the automaker outperformed analyst expectations compiled by LSEG. Adjusted earnings per share came in at $3.70, well above the $2.62 forecast, while revenue reached $43.62 billion, slightly below the expected $43.68 billion.

The International Emergency Economic Powers Act (IEEPA) tariff benefit was widely anticipated by analysts, though the exact amount was uncertain. The ruling is part of an estimated $160 billion in potential refunds expected to return to companies after the tariffs were declared illegal in February by the Supreme Court in a 6-3 decision.

GM has not yet received the IEEPA refunds but expects to do so and chose to record the benefit in the first quarter. Last week, President Trump told CNBC that he would remember companies that choose not to pursue refunds for the tariffs.

Excluding the IEEPA-related impact, GM still projects gross tariff costs of between $2.5 billion and $3.5 billion this year, revised down from an earlier estimate of $3 billion to $4 billion.

The Detroit automaker updated its 2026 guidance to include adjusted earnings before interest and taxes of $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 expectations. Net income attributable to shareholders is now projected at $9.9 billion to $11.4 billion, up from $10.3 billion to $11.7 billion. Automotive operating cash flow is expected to range from $16.8 billion to $20.8 billion, revised from $19 billion to $23 billion.

GM Chief Financial Officer Paul Jacobson told CNBC’s Phil LeBeau that the company did not raise its automotive free cash flow guidance of $9 billion to $11 billion due to uncertainty surrounding the tariff refund process and its timing.

News.Az 

By Nijat Babayev