Charles EstherCompanies are finding it increasingly difficult to predict their financial performance.
Economic uncertainty is forcing many major firms to pull or revise their earnings guidance.
The situation is largely driven by the impact of tariffs implemented by President Donald Trump.
Executives from leading companies are describing the environment as “volatile,” “challenging,” and “impossible to predict.”
Below is a breakdown of key companies that have altered or withdrawn their financial forecasts.
GM Freezes Forecasts and Buybacks
General Motors announced on Tuesday that it would suspend its 2025 earnings guidance.
It also decided to freeze a planned $4 billion share buyback.
Two days later, after new tariff adjustments were announced, GM reduced its guidance for the current year.
The company revealed it is facing a tariff exposure of $4 billion to $5 billion.
With a manufacturing presence in Mexico and Canada, GM is especially vulnerable to trade policies.
Barclays analysts had warned that such tariffs could eliminate the profits of GM, Ford, and Stellantis.
UPS Cuts Jobs and Pulls Guidance
UPS reported that it would withdraw its financial guidance in its Q1 earnings release.
The parcel delivery giant also announced it plans to cut 20,000 jobs by the end of 2025.
“Given the current macro-economic uncertainty, the company is not providing updates to its previously issued outlook,” UPS said.
Its revenues fell by 0.7%, totalling $21.5 billion.
Procter & Gamble Slashes Outlook
Procter & Gamble revised its sales growth forecast for fiscal year 2025 to flat, down from a 2%–4% increase.
It also cut its core EPS outlook to $6.72–$6.82, down from $6.91–$7.05.
P&G’s CFO, Andre Schulten, said the company would need to “pull every lever” to cope with the impact of tariffs.
CEO Jon Moeller noted a “challenging and volatile consumer and geopolitical environment.”
PepsiCo Warns of Rising Costs
PepsiCo cited rising production costs and weaker consumer spending as key issues.
CEO Ramon Laguarta said the company expects volatility in global trade to raise supply chain costs.
PepsiCo lowered its core EPS forecast for the year to a 3% decline.
CFO Jamie Caulfield noted reduced consumer optimism in a post-earnings call.
Chipotle Adjusts Sales Forecast
Chipotle now predicts a low single-digit sales increase for the fiscal year.
This is down from its previous projection of low- to mid-single digits.
Interim CEO Scott Boatwright attributed the slowdown to consumer uncertainty.
He said many consumers are cutting back on restaurant visits due to economic concerns.
United Airlines Issues Dual Forecasts
United Airlines took a unique approach by offering two sets of financial outlooks.
One is based on stable economic conditions, and the other assumes a recession.
The company said a single consensus no longer exists.
United called the macroeconomic environment “impossible to predict.”
Delta Pulls 2025 Financial Guidance
Delta Air Lines was among the first to withdraw its 2025 financial guidance.
CEO Ed Bastian said it would be “premature” to offer full-year projections given current uncertainty.
He promised an update later in the year as visibility improves.
American Airlines Withdraws Forecasts
American Airlines also pulled its full-year guidance.
CEO Robert Isom said the high cost of aircraft and tariff concerns made it unreasonable to provide an accurate forecast.
He emphasized that added costs would not be welcomed by customers.
Isom told CNBC that “uncertainty” was the primary reason for pulling guidance.
Southwest Airlines Joins the List
Southwest Airlines has withdrawn its full-year 2025 and 2026 EBIT forecasts.
The company cited recent and short-lived booking trends as making future performance difficult to project.
JetBlue Adjusts Plans Amid Lower Demand
JetBlue followed suit by removing its financial forecast in its April 29 earnings.
CEO Joanna Geraghty cited macroeconomic uncertainty and lower demand.
JetBlue is also evaluating plane retirements and capacity cuts.
Thermo Fisher Faces Revenue Headwinds
Thermo Fisher Scientific expects a $400 million revenue hit from tariffs.
CEO Mark Casper said the new guidance reflects the impact of current U.S. policy changes.
Tariffs are affecting both U.S. exports to China and imported parts from China.
Snap Declines to Offer Guidance
Snap Inc., the parent company of Snapchat, declined to issue Q2 guidance in its Q1 earnings report.
It attributed this decision to broad macroeconomic uncertainty and unpredictable advertising demand.
Stellantis Suspends Forecasts
Stellantis, owner of brands like Jeep, Dodge, and Peugeot, suspended its financial guidance on April 30.
The company is working closely with policymakers to mitigate tariff impacts.
Mercedes-Benz Withdraws Projections
Mercedes-Benz also withdrew its full-year forecast, citing tariff-related unpredictability.
The company said its guidance would have remained unchanged without the new tariffs.
Ford Predicts a $1.5 Billion Hit
Ford suspended its full-year guidance in its Q1 earnings release on May 5.
The company expects a $1.5 billion hit to EBIT due to tariffs and supply chain issues.
Ford said retaliatory tariffs from other nations are also creating additional risks.
These uncertainties make updating financial guidance too difficult at the moment.
Conclusion
A growing number of top U.S. companies are suspending or lowering their earnings guidance.
Tariffs, inflation, and shifting global trade policies are creating an unpredictable business environment.
As executives attempt to steer through these turbulent times, financial transparency and forecasting will remain extremely challenging.
