General Motors reported a decline of about 6% in net income to $2.62 billion in its first quarter 2026 earnings report as vehicle sales, excluding trucks and crossovers, declined, but the company’s net income rose significantly due to software and services such as OnStar and Super Cruise.
On April 28, the Detroit automaker reported earnings for the year ended March 31 and updated its full-year 2026 outlook.
GM posted strong results despite recording some revenue hits, including $1 billion in costs to settle supplier contracts as the automaker scaled back production of electric vehicles.
GM also recorded a $500 million benefit to determine the amount the company expects to recover following the Supreme Court’s ruling that some of President Donald Trump’s tariffs were unconstitutional. GM also paid $900 million in tariffs in the first quarter of 2026, down from $200 million in the first quarter of 2025.
EV production shift, tariffs
GM posted a $7.6 billion loss last year as it downsized its EV manufacturing footprint. These losses occurred in waves throughout the year and accounted for unused EV production equipment and supplier contract cancellations.
GM also took a $3.1 billion hit from auto and parts tariffs in three of the four quarters of 2025. The company expects to incur similar costs in 2026, but the Supreme Court’s ruling provides some relief.
On February 20, the court ruled 6-3 to overturn President Trump’s tariffs, arguing that the US trade deficit created a national emergency and that he had mistakenly invoked the Emergency Powers Act of 1977. Starting April 27, businesses began applying for refunds through a site maintained by U.S. Customs and Border Protection.
GM’s financial guidance is for net income in the range of $9.9 billion to $11.4 billion, lower than previously expected, but the range for adjusted net income for all of 2026 is higher, at $13.5 billion to $15.5 billion. GM lowered the range it expects to earn from its auto business from $19 billion to $23 billion to $16.8 billion to $20.8 billion.
GM’s 2026 financial guidance still includes expected capital expenditures of $10 billion to $12 billion, including the company’s battery cell manufacturing joint venture.
Before adjusting for special items, GM reported net income of $4.25 billion, an increase of 22% compared to the first quarter of 2025. GM’s pre-interest and tax earnings are the basis for payments to GM executives and union members.
“Disciplined Execution”
In a letter to shareholders, CEO Mary Barra said GM’s “strategic product portfolio and disciplined execution by its teams, dealers and suppliers” led to the strong financial performance, noting that adjusted earnings beat expectations.
Barra emphasized sales of crossover vehicles such as the Chevrolet Trax, Equinox and Traverse. The proportion of Buick Envista, GMC Terrain and GMC Acadia has increased from 40% before GM began its lineup refresh in 2023 to more than 46%.
“Looking forward, we remain focused on achieving 8% to 10% margins in North America this year. OnStar, including Super Cruise, is contributing to high-margin revenue growth, and we are advancing self-driving technology in a way that differentiates GM,” Barra’s letter said. “We obviously operate in a very dynamic environment, which is not unusual in our industry. That’s why we have focused for several years on ensuring we have the right products, the right team, and a strong balance sheet supported by healthy cash flow to achieve our long-term goals and consistently execute our capital allocation strategy.”
Glossary:
Earnings before interest and taxes: A metric that companies prefer to use because it does not take into account losses incurred during the quarter. Therefore, this value tends to be higher, indicating that the company is in a better position.
Net Profit: The amount of money a company has left over after paying all expenses associated with operating its business.
Revenue: The amount of money a business generates during a specified period, excluding expenses such as operating costs and taxes.
GM was the first of the Detroit Three to announce earnings for the first quarter of 2026.
Ford Motor Co. is scheduled to report its first-quarter results on April 29th, and Stellantis, which manufactures the Chrysler, Dodge, Jeep, Ram and Fiat brands, is scheduled to report on April 30th.
Jackie Charniga covers General Motors for the Free Press. please contact her jcharniga@freepress.com.
