General Motors Company

New York Stock Exchange
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Somewhat Bullish +50

GM or F: Which Stock Has An Upper Hand Post Q1 Earnings Release? - Yahoo Finance

AI-generated analysis

📈 General Motors reported first-quarter 2026 adjusted EPS of $3.70, beating the consensus estimate of $2.61 and rising from the prior year's $2.78.

📉 GM consolidated revenues totaled $43.62 billion, representing a slight decline of 0.9% year over year and missing the consensus mark of $43.94 billion.

💻 GM is expanding its recurring revenue base with digital revenues exceeding $750 million in Q1 2026, up more than 20% year over year.

🚗 Super Cruise technology has driven 1 billion hands-free miles, with paid subscribers expected to exceed 850,000 by the end of 2026.

📈 GM raised its full-year 2026 adjusted EBIT guidance to $13.5-$15.5 billion and lifted its EPS outlook to $11.50-$13.50 per share.

⚖️ The upward guidance revision was primarily driven by an adjustment of about $500 million related to a U.S. Supreme Court decision on tariff refunds under IEEPA.

📉 GM raised its commodity inflation outlook for 2026 to $1.5-$2 billion, reflecting higher logistics and DRAM costs compared to prior estimates.

💰 GM expects gross tariff costs of $2.5-$3.5 billion for 2026, which remains a significant burden on the company's profitability.

🔄 GM repurchased 800 million shares in Q1 2026 and ended the quarter with $5.5 billion remaining under its stock repurchase authorization.

💵 GM declared a quarterly dividend of 18 cents per share, resulting in a yield of less than 1%.

📉 Analysts have revised down GM's 2026 EPS consensus estimate by 2 cents to $12.42 over the past seven days.

⚠️ Management acknowledged operational risks to GM's international business and rising input costs that could pressure near-term performance.

🏆 Zacks Investment Research maintains a Hold rating (Rank #3) for General Motors with a Value Score of A.

Bullish Signals
  • General Motors' first-quarter 2026 adjusted EPS of $3.70 beat the Zacks Consensus Estimate of $2.61 and increased from the year-ago quarter's $2.78.
  • GM raised its full-year 2026 EBIT-adjusted guidance to $13.5-$15.5 billion, lifting its adjusted earnings outlook to $11.50-$13.50 per share.
  • The company benefited from an adjustment of about 500 million tied to a U.S. Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act (IEEPA).
  • GM is building a larger recurring revenue base, with first-quarter recognized digital revenues exceeding $750 million, up more than 20% year over year.
  • Deferred revenues reached $5.8 billion in Q1, up more than 50%, with management expecting deferred revenues close to $7.5 billion by year end as subscribers rise to roughly 13 million.
  • Super Cruise customers have driven 1 billion hands-free miles, and paid subscribers are expected to exceed 850,000 by the end of 2026.
  • In first-quarter 2026, GM repurchased 800 million of stock, retiring about 11 million shares and ending the quarter with $5.5 billion remaining under its repurchase authorization.
  • The company declared a quarterly dividend of 18 cents per share and ended the quarter with over $19 billion of automotive cash.
Risk Factors
  • General Motors reported first-quarter 2026 revenues of $43.62 billion, which slipped 0.9% year over year and missed the analyst consensus estimate of $43.94 billion.
  • GM raised its commodity inflation outlook for 2026 to $1.5-$2 billion, an increase of $500 million from prior estimates, reflecting higher logistics and DRAM costs.
  • The company now expects gross tariff costs between $2.5-$3.5 billion for 2026, representing a significant burden on profitability.
  • Despite the earnings beat, the consensus estimate for GM's 2026 EPS was revised down by 2 cents to $12.42 in the past seven days.
Full Analysis
General Motors reported first-quarter 2026 adjusted earnings per share of $3.70, surpassing the consensus estimate of $2.61 and rising from the prior year's $2.78. Despite a slight decline in total revenues to $43.62 billion, which missed analyst expectations, GM significantly upgraded its full-year 2026 outlook. The company raised its adjusted EBIT guidance to $13.5-$15.5 billion and increased its earnings per share forecast to $11.50-$13.50, driven largely by a one-time adjustment of approximately $500 million related to U.S. Supreme Court rulings on tariff refunds under the IEEPA. GM is actively expanding its recurring revenue streams through its digital services, with recognized digital revenues exceeding $750 million in the quarter, an increase of over 20% year over year. The company projects recognized digital revenues will reach about $3.1 billion in 2026 as subscriber numbers approach 13 million. Additionally, GM highlighted the success of its Super Cruise technology, noting that customers have accumulated one billion hands-free miles, with paid subscriptions expected to exceed 850,000 by the end of the year. Looking ahead, GM faces several headwinds including operational risks in international markets and rising commodity inflation costs, which it now expects to range between $1.5-$2 billion for 2026. The company also anticipates gross tariff costs between $2.5-$3.5 billion for the year. To manage capital, GM repurchased 800 million shares in the first quarter and declared a quarterly dividend of 18 cents per share, ending the period with over $19 billion in automotive cash reserves.