GM Lifts 2026 EBIT-Adjusted Guidance as Tariff Cost Estimate Falls to $2.5B–$3.5B

General Motors (NYSE: GM) raised its full-year 2026 profit guidance on April 28, 2026, citing materially lower tariff exposure after a favorable U.S. Supreme Court decision. The automaker now projects gross tariff costs of $2.5 billion to $3.5 billion for the year, down from its prior estimate of $3.0 billion to $4.0 billion — a roughly $500 million improvement tied to the invalidation and refund of certain duties levied under the International Emergency Economic Powers Act. The reduced tariff drag flowed directly into earnings guidance. GM lifted its 2026 EBIT-adjusted outlook to $13.5 billion–$15.5 billion, up from $13.0 billion–$15.0 billion, and raised adjusted EPS guidance to $11.50–$13.50 from $11.00–$13.00. Adjusted automotive free cash flow guidance was held at $9 billion–$11 billion. The upgrade landed alongside a strong first quarter. GM posted adjusted EPS of $3.70, well ahead of the $2.62 Wall Street consensus and up from $2.78 a year earlier. Revenue was $43.62 billion, roughly in line with the $43.68 billion estimate but down slightly from $44 billion a year ago. EBIT-adjusted reached $4.25 billion, a 22% year-over-year increase. Notably, management said the underlying business outperformed even excluding the tariff benefit, with core earnings up about 7.5% year-over-year. The picture was not uniformly upbeat. GM trimmed its full-year net income attributable to stockholders forecast to $9.9 billion–$11.4 billion from $10.3 billion–$11.7 billion, and the quarter included roughly $1.1 billion in special charges tied to its retreat from earlier all-electric vehicle commitments. Those EV-related write-downs and softer net income and cash-flow framing tempered the market's enthusiasm. The stock reaction was muted and short-lived. GM shares rose about 1.3% to close near $78.95 on April 28, then gave back nearly 3% the following session to around $76.62 as investors weighed the headline beat against the lighter net income outlook. JPMorgan and other analysts revisited their price targets following the print. The key takeaway for investors is that easing trade-policy risk is improving GM's margin visibility into 2026. With tariff costs now expected to be lower and core operations outperforming, the EBIT-adjusted raise reflects genuine operating strength rather than a one-off accounting benefit — though EV-restructuring charges and a softer net income line remain watch items.