GM Q1 2025 Earnings Beat Wall Street Estimates, CFO Paul Jacobson Says Future Impact Of Tariffs Could Be Significant

Automaker General Motors (GM) reported upbeat earnings on Tuesday but pulled its full-year guidance due to uncertainty surrounding the Trump administration’s tariff policies.

The company reported a 2.3% year-over-year (YoY) rise in its first-quarter revenue to $44.02 billion, exceeding an analyst estimate of $43.21 billion.

Adjusted earnings per share (EPS) for the quarter came in at $2.78, up 6.1% from the first quarter of 2024, and above an estimated $2.66.

Net income attributable to shareholders fell 6.6% YoY to $2.78 billion.

The company stated that it is updating its 2025 full-year guidance, as the initial projection did not account for the potential impact of tariffs.

GM Chief Financial Officer Paul Jacobson said during a media call that the firm believes the future impact of tariffs could be significant, according to a Reuters report. "We're telling folks not to rely on the prior guidance, and we'll update when we have more information around tariffs," he said. 

The report added that the company is also pausing its share buyback activity until it receives more clarity on the economic situation. Earlier this year, the company announced that it would repurchase $2 billion of shares by the first half of the year and remaining $4 billion at any point of the company’s choosing.

In January, GM stated that it expects adjusted EPS in the range of $11.00 to $12.00 for the full year and net income between $11.2 billion and $12.5 billion.

In the first quarter, the company delivered 693,363 vehicles in the U.S., representing a 16.7% increase from the corresponding period last year.

GM stock is down approximately 8% this year but up about 3% over the past 12 months.

Also See: UPS Q1 2025 Earnings Beat Estimates: Parcel Giant To Cut Costs Through Layoffs, Building Closures Through 2025

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