GM raises outlook after tariffs refund boost as earnings beat expectations

General Motors has raised its 2026 outlook after beating earnings expectations, supported by a projected $500 million benefit linked to US tariffs.

The company said the gain follows a Supreme Court decision to refund certain levies imposed under former tariffs, according to CNBC.

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Despite the stronger results, GM shares fell about 4 percent in early trading on Tuesday.

Chief executive Mary Barra said in a letter to shareholders: “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”, she added.

GM expects adjusted earnings for 2026 to reach between $13.5 billion and $15.5 billion, higher than previous forecasts.

However, the company also lowered its net income outlook due to special charges linked to its pullback from all electric vehicle projects.

Chief financial officer Paul Jacobson said to CNBC uncertainty around tariff refunds influenced financial planning: “The North America team, I think, did a tremendous job of managing the market with, really, challenges on inventory throughout the whole quarter.”

“I also think we got a little bit ahead of the game on costs. That’s really where I think the beat came from in the quarter”, he added.

GM continues to face billions in tariff related costs despite the refund.