General Motors $GM raised its full-year 2026 profit forecast after a U.S. Supreme Court ruling reduced its expected tariff costs by about $500 million, helping the automaker post first-quarter adjusted earnings that beat Wall Street expectations.

Against analyst expectations of $2.62 per share, according to CNBC, the automaker delivered first-quarter adjusted EPS of $3.70. Quarterly revenue of $43.62 billion reflected a roughly 1% year-over-year dip from the $44.02 billion recorded in the same period of 2025.

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The company now expects full-year adjusted EBIT of $13.5 billion to $15.5 billion, up from a prior range of $13 billion to $15 billion, GM said. Adjusted EPS guidance rose to $11.50 to $13.50, from $11 to $13. Adjusted automotive free cash flow guidance was unchanged at $9 billion to $11 billion.

Behind the raised outlook is a roughly $500 million windfall tied to a legal challenge that invalidated a set of tariffs imposed under the International Emergency Economic Powers Act. A 6-3 Supreme Court ruling in February declared those charges unlawful; industry-wide, the decision is projected to return roughly $160 billion to affected businesses, according to CNBC. Although the cash has not yet arrived, GM recognized the anticipated refund in its first-quarter results.

GM now expects gross tariff costs of $2.5 billion to $3.5 billion for the full year, down from an original estimate of $3 billion to $4 billion, the company said.

On an adjusted basis, EBIT for the quarter came to $4.25 billion, a 22% improvement over the $3.49 billion posted in the year-ago period. Stockholder net income totaled $2.63 billion, compared with $2.78 billion twelve months prior. A $1.1 billion charge connected to the automaker's retreat from a fully electric lineup weighed on reported net income, though it was excluded from adjusted figures.

In her letter to shareholders, GM CEO Mary Barra wrote: "We have solid momentum in our core operations. As we move forward, I'm confident this will continue to differentiate GM and support long-term value creation for our owners."

GM's North America segment posted adjusted EBIT of $3.66 billion, up from $3.29 billion a year earlier. The GM Financial segment contributed $688 million in adjusted earnings before taxes, essentially flat compared with $685 million a year ago.

The company also declared a quarterly cash dividend of $0.18 per share, payable June 18, 2026, to shareholders of record as of June 5, 2026, GM said.

Following the earnings release, premarket trading showed GM shares gaining roughly 5%.

GM hiked its profit forecast after a Supreme Court ruling lowered its tariff bill

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