Catenaa, Tuesday, April 28, 2026- General Motors(GM) posted a 22% rise in first-quarter core profit on Tuesday, while lifting its full-year earnings forecast, with a resilient US car market and an expected tariff refund.
The largest US automaker by sales comfortably beat analysts’ profit estimates while navigating a fast-changing geopolitical and regulatory backdrop that is reshaping the industry.
US tariffs and higher energy costs linked to the Iran war are weighing on results, even as looser US pollution and fuel-economy rules introduced last year under President Trump are lifting margins.
Pickup-truck sales, a key profit driver, remained strong despite higher gas prices.
GM warned, though, that inflation driven by the war would continue to pressure the business.
“The number one thing we’re watching is what happens with the Iranian conflict,” CEO Mary Barra said, pointing to rising commodity and logistics costs. The company also said it diverted planned shipments of 7,500 SUVs from the Middle East because of the conflict.
GM reported earnings before interest and taxes of $4.3 billion, or $3.70 per share, which beat analysts’ estimate of $2.62, according to LSEG data. Shares fell around 2% in morning trading.
The Detroit automaker raised its 2026 profit outlook by $500 million, matching the amount it expects to recover from refunds tied to a US Supreme Court ruling that struck down some of the Trump administration’s tariffs. It now expects full-year core profit of $13.5 billion to $15.5 billion.
It still sees US tariffs cutting $2.5 billion to $3.5 billion from profits this year, revised down from an earlier estimate of $3 billion to $4 billion because of the expected refund.
GM’s higher profit outlook comes despite rising costs. It now expects inflation in raw materials, computer chips, and logistics to cut earnings by $1.5 billion to $2 billion this year, about $500 million more than it estimated late last year.
Quarterly net income fell 6% from a year earlier to $2.6 billion, mostly due to a $1.1 billion charge to settle supplier claims for slowing electric-vehicle programs. Revenue of $43.6 billion was down less than 1%.
American consumers have continued buying cars despite economic uncertainty from tariffs, higher gas prices, and a shaky job market.
“We haven’t seen any material changes to demand or mix thus far,” CFO Paul Jacobson said on an earnings call.
In North America, GM’s biggest money maker, its profit margin improved to 10.1% from 8.8% a year earlier, despite lower vehicle shipments to dealers and a 10% decline in sales in the first quarter.
The sales decline partly reflected a tough comparison with the first quarter of 2025, when US buyers snapped up new vehicles ahead of tariff-related price hikes.
Pickup-truck sales remained strong even as US gasoline prices surged above $4 per gallon in March. Jacobson told CNBC that dealership traffic stayed steady in March and April.
GM said savings from eased US tailpipe emissions rules, lower warranty expenses, and stronger pricing helped offset weaker sales. Its average US vehicle selling price rose about 3% to $52,000 in the quarter.
Pulling back on its EV business also lifted results by several hundred million dollars, as those vehicles remain loss-making. GM expects a $1 billion boost this year from reducing EV losses.
