Breeding for drought tolerance is a challenging task that requires costly, extensive and precise phenotyping. Genomic selection (GS) can be used to maximize selection efficiency and the genetic gains in maize (Zea mays L.) breeding programs for drought tolerance. Here we evaluated the accuracy of genomic selection of additive (A) against additive+dominance (AD) models to predict the performance of untested maize single-cross hybrids for drought tolerance in multi-environment trials. Phenotypic data of five drought-tolerance traits were measured in 308 hybrids in eight trials under water-stressed (WS) and well-watered (WW) conditions over two years and two locations in Brazil. Hybrids’ genotypes were inferred based on their parents’ genotypes (inbred lines) using single nucleotide polymorphism data obtained via genotyping-by-sequencing. GS analyses were performed using genomic best linear unbiased prediction by fitting a factor analytic (FA) multiplicative mixed model. Results showed differences in the predictive accuracy between A and AD models for the five traits under consideration in both water conditions. For grain yield (GY), the AD model doubled the predictive accuracy in comparison to the A model. FA framework allowed for investigating the stability of additive and dominance effects across environments, as well as the additive- and dominance-by-environment interactions, with interesting applications for parental and hybrid selection. Prediction performance of untested hybrids using GS that benefit from borrowing information from correlated trials increased 40% and 9% for A and AD models, respectively. These results highlighted the importance of multi-environment trial analysis with GS that incorporate dominance effects into genomic predictions of GY in maize single-cross hybrids.