General Motors is set to report earnings before the bell. Here's what Wall Street expects

General Motors Surpasses Q1 Expectations Amid Tariff Uncertainty
General Motors (GM) has reported strong first-quarter earnings for 2025, outperforming Wall Street's projections. However, despite the positive results, the automaker has postponed its scheduled earnings call and the release of its full-year guidance due to growing concerns over potential U.S. auto tariff changes. This move introduces new uncertainty into GM's forward-looking strategy.

Strong Financial Performance in Q1
For the quarter ending March 31, GM delivered an adjusted earnings per share (EPS) of $2.78, beating analysts’ estimates of $2.70. Revenue climbed to $44.02 billion, reflecting a 2.3% increase compared to the same period last year and surpassing the projected $42.85 billion.

Net income totaled $2.78 billion, equating to $3.35 per share, up from $2.98 billion or $2.56 per share in the previous year. This performance highlights GM’s ongoing ability to generate solid returns even in a complex global environment.

Postponement of Earnings Call and Guidance
Despite the upbeat quarterly results, GM delayed its earnings call and annual guidance update until later in the week. The company cited the uncertainty surrounding potential adjustments to U.S. auto tariffs as the key reason for the delay. These potential changes could significantly reshape the regulatory landscape for automakers and impact strategic planning.

Reports indicate that the U.S. government may soon announce revisions to current tariffs on imported vehicles and parts, which has led to mounting speculation and caution within the industry.

Impact of Potential Tariff Changes
The prospect of revised tariffs is casting a shadow over the automotive sector. Industry analysts warn that if tariffs are increased or restructured, automakers may face higher production costs and diminished consumer demand due to rising vehicle prices.

One major financial institution has estimated that if current tariffs are maintained or tightened, U.S. vehicle production and sales could drop by approximately 3 million units. For GM specifically, such a scenario could lead to an 11% reduction in operating earnings—an impact that would ripple across its supply chain and shareholder value.

Other automakers, such as Volvo Cars and Porsche, have also begun revising their financial strategies in anticipation of policy shifts. Across the broader business landscape, uncertainty over trade policy is prompting companies to issue profit warnings and explore cost-cutting measures to safeguard their margins.

Market Reaction
Investor sentiment was cautious following the earnings announcement. GM's stock dipped by more than 2% in pre-market trading after the postponement of its call and guidance update. On a year-to-date basis, GM shares have fallen by over 10%, reflecting growing investor concerns around policy-driven risks and the automaker’s ability to sustain growth under potentially unfavorable trade conditions.

Conclusion
General Motors' strong first-quarter results demonstrate the company’s financial resilience amid a challenging macroeconomic backdrop. However, the looming uncertainty around U.S. auto tariffs casts a shadow over the rest of the year. As the industry braces for possible regulatory changes, all eyes will be on GM’s upcoming earnings call for further clarification on how the company plans to navigate these evolving risks.

The automaker’s ability to adapt strategically in the face of trade and market pressures will be critical—not only for maintaining profitability but also for preserving its competitive position in a rapidly shifting global automotive landscape.