General Motors announced on Tuesday a 22% increase in its first-quarter core profit and raised its full-year profit forecast, supported by a resilient American auto market and expected tariff refunds.
The Detroit automaker reported a pre-tax profit of $4.3 billion, or $3.70 per share, exceeding analysts’ estimates of $2.62, according to LSEG data.
GM raised its 2026 profit forecast by $500 million, the amount it hopes to recover in tariff refunds following a Supreme Court decision invalidating some duties imposed by the Trump administration. It now expects an annual core profit between $13.5 and $15.5 billion.
The company’s quarterly net profit decreased by 6% from the previous year to $2.6 billion, mainly due to a $1.1 billion charge to settle supplier claims related to slowing electric vehicle programs. Revenue of $43.6 billion decreased by less than 1%.
GM highlighted the ongoing purchases by American consumers despite economic uncertainties related to tariffs, rising gas prices, and shaky job market conditions. “We are clearly operating in a very dynamic environment, which is not unusual for this sector,” said GM CEO Mary Barra in a statement.
In North America, GM’s main revenue source, its profit margin improved from 8.8% the previous year to 10.1%, despite a 10% decrease in sales in the first quarter.
The decline in sales was partly attributed to a tough comparison with the first quarter of 2025 when American buyers rushed to buy new vehicles ahead of tariff-related price hikes.
GM mentioned that savings from relaxed emission regulations in the U.S. and reduced warranty costs helped offset the sales decline.
In China, where GM is undergoing business restructuring, the automaker reported an equity income of $165 million, compared to $45 million a year ago.
Its international operations outside China recorded a core profit of $123 million, up from $30 million previously.
Similar to many other automakers, GM reduced its production of electric vehicles due to decreased demand following pro-fossil fuel policies implemented by the Trump administration last year. Sales of GM electric vehicles dropped by 43% in the last three months of the previous year.
Aside from the $1.1 billion charge in the first quarter, GM recorded $7.6 billion in impairments on its electric vehicle programs last year.
