Detroit, April 28, 2026, 08:03 (EDT)
General Motors bumped up its 2026 profit outlook Tuesday, pointing to a solid first quarter and a $500 million tariff tweak—even as both revenue and net income slipped. The company’s first-quarter numbers: $43.6 billion in revenue, net income to shareholders at $2.6 billion, and adjusted EBIT landing at $4.3 billion. That adjusted EBIT figure strips out some unusual items and measures earnings before interest and taxes.
GM is scrambling to shield its margins as tariff rules shuffle, costs refuse to budge, and demand in the EV space stays patchy. The automaker now pegs its 2026 gross tariff costs at $2.5 billion to $3.5 billion—lower than the previous $3.0 billion to $4.0 billion range—after an advantageous adjustment related to tariffs paid under the International Emergency Economic Powers Act.
Investors got a clearer sense of GM’s main U.S. truck and crossover operations ahead of the company’s analyst call. GM’s adjusted profit landed at $3.70 a share, beating the $2.62 estimate from analysts polled by LSEG, according to Reuters. Shares climbed roughly 5% in premarket action.
GM bumped up its full-year adjusted EBIT outlook, now projecting $13.5 billion to $15.5 billion, up from the previous $13.0 billion to $15.0 billion range. The automaker also increased adjusted diluted EPS guidance to a range of $11.50 to $13.50, compared with its earlier $11.00 to $13.00 forecast. Adjusted automotive free cash flow stays put at $9.0 billion to $11.0 billion.
Not everything went the company’s way this quarter. Revenue edged down 0.9% year-over-year, and net income dropped 5.7%. Still, adjusted EBIT surged 21.9% thanks in part to a bump in GM North America’s adjusted margin, up to 10.1% from 8.8%. Adjusted diluted EPS jumped 33%, landing at $3.70.
In a letter to shareholders, Chief Executive Mary Barra highlighted what she called “solid momentum in our core operations,” flagging GM’s sales lead in both the U.S. and Canada and a 42% U.S. market share for full-size pickups. Barra noted that crossovers have climbed from just above 40% of GM’s total sales to over 46% since the company started updating that lineup in 2023. General Motors
Software is still a piece of GM’s margin puzzle. The company pointed to OnStar—with Super Cruise in the mix—as a driver for high-margin revenue. That’s the kind of income that translates into more profit once expenses are covered. CEO Mary Barra said in her letter that GM is making headway in automated-driving tech, aiming to carve out a distinctive position.
Competition remains intense. Analysts were looking for GM to pull ahead of Ford and Stellantis, with all three Detroit automakers navigating tariffs, electric vehicle losses, and persistent cost pressure, CBT News reported. Ford has been dealing with operational hiccups and higher aluminum prices, while Stellantis continues to push through a wider turnaround.
Still, the higher outlook doesn’t wipe away the hazards. GM trimmed its automotive operating cash-flow target, now aiming for $16.8 billion to $20.8 billion, down from the previous $19.0 billion to $23.0 billion range. The company’s filings continue to flag questions around when—and how much—tariff refunds might come in. Reuters added that GM is bracing for a $1.5 billion to $2.0 billion hit to earnings this year from pricier raw materials, chips, and logistics.
EVs continue to pinch the bottom line. According to Reuters, GM’s earnings took a hit mainly from a $1.1 billion charge linked to settling supplier claims after the automaker dialed back its electric-vehicle rollout—this stacks onto $7.6 billion in EV write-offs last year. Barra called it a “very dynamic environment”; the figures make her point. Reuters
The tariff refund process remains stuck in the government pipeline. According to Reuters, U.S. Customs and Border Protection rolled out CAPE, its refund-processing platform, following the Supreme Court’s decision to overturn tariffs imposed under IEEPA. Court records cited by Reuters show over 330,000 importers ended up paying those tariffs on 53 million shipments.
GM set its quarterly cash dividend at 18 cents a share, with payment scheduled for June 18 to investors holding stock as of the close on June 5. While the dividend took a backseat in Tuesday’s results, it still signaled management’s commitment to returning cash—even as GM navigates tariffs, EV adjustments, and softer demand.
