General Motors reported a nearly 6% decline in net income to $2.62 billion in its first-quarter 2026 earnings report amid lower vehicle sales, excluding trucks and crossovers, but significantly boosted by software and services like OnStar and Super Cruise.
The Detroit automaker reported earnings on April 28 for the period ending March 31 and issued an updated full-year guidance for 2026.
GM turned in a strong performance despite recording several hits to its bottom line, including a $1 billion charge to settle supplier contracts stemming from the automaker’s cutback to electric vehicle production.
GM also reported a $500 million profit, which represents the amount of money the company expects to recoup following the Supreme Court’s ruling that struck down some of President Donald Trump’s tariffs as unconstitutional. GM still paid $900 million in tariffs in the first quarter of 2026, up from $200 million in the first quarter of 2025.
EV production shifts and tariff costs
GM wrote off a $7.6 billion loss last year on shrinking its EV manufacturing footprint. Those losses, incurred in waves throughout the year, included unused EV production equipment and canceled supplier contracts.
GM lost $3.1 billion from automobile and parts tariffs during three of the four quarters through 2025. While the company expects similar costs in 2026, the Supreme Court decision has provided some relief.
The court overturned Trump’s tariffs in a 6-3 decision on February 20, ruling that Trump wrongly invoked the 1977 emergency powers law when he claimed the U.S. trade deficit constituted a national emergency. Starting April 27, businesses began applying for refunds through a site administered by U.S. Customs and Border Protection.
GM’s financial guidance is now net income of $9.9 billion to $11.4 billion, down from its previous forecast, but with a higher adjusted net income range of $13.5 billion to $15.5 billion in 2026. GM cut the range it expects to generate from its automotive business to $16.8 billion to $20.8 billion, down from $19 billion to $23 billion.
GM’s 2026 financial guidance still includes projected capital expenditures of $10 billion to $12 billion, including for the company’s battery cell manufacturing joint ventures.
Before adjusting for special items, GM reported net income of $4.25 billion, an increase of 22% compared to the first quarter of 2025. Earnings before interest and taxes are the metric by which GM executives and union workers are paid.
‘Disciplined execution’
CEO Mary Barra attributed the strong financial performance to GM’s “strategic product portfolio and disciplined execution by our teams, dealers and suppliers” in her letter to shareholders, noting that the adjusted earnings figure exceeded expectations.
Barra highlighted sales of crossover vehicles including the Chevrolet Trax, Equinox and Traverse and the Buick Envista, GMC Terrain and GMC Acadia, which have grown to more than 46% of GM’s mix — up from 40% before GM refreshed the lineup in 2023.
Barra’s letter said, “Looking ahead, we are focused on delivering 8%-10% North America margins this year; OnStar, including Super Cruise, is contributing to high-margin revenue growth; and we are advancing automated driving technology in ways that differentiate GM.” “We are obviously operating in a very dynamic environment, which is not unusual for this industry. That’s why we have a multi-year focus on ensuring we have the right product, 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.”
key terms
earnings before interest and taxes: The metric that companies prefer to use because it does not account for quarterly losses; It tends to be higher and shows the company in a more favorable light.
Net Income: The amount of money that a company has left after paying all expenses related to operating its business.
Income: How much money a company made during a specified period before expenses such as operating costs or taxes.
GM is the first of the Detroit Three to report earnings for the first quarter of 2026. Ford Motor Co. is expected to release its first-quarter results on April 29, and Stellantis — which makes the Chrysler, Dodge, Jeep, Ram and Fiat brands — is expected to release its results on April 30.