GM · Q1 2026 Earnings

Cautious

General Motors

Reported April 28, 2026

30-second summary

GM reported Q1 revenue of $43.6B (-0.9% YoY) with EBIT-adjusted of $4.25B (9.7% margin) and adjusted EPS of $3.70, a clean operating quarter led by GMNA at a 10.1% EBIT-adjusted margin (8.6% ex the ~1.5pt tariff adjustment) and a 20.8% ROIC-adjusted. The headline is the FY2026 guidance split: adjusted EPS raised $0.50 to $11.50–13.50 and EBIT-adjusted raised $0.5B to $13.5–15.5B on a U.S. Supreme Court tariff ruling — while GAAP EPS was cut $0.38–0.40, net income lowered $0.3–0.4B, operating cash flow cut $2.2B to $16.8–20.8B, and the prior $10–12B capex guide was withdrawn entirely. The print resolves last quarter's GMNA margin question positively; it raises new ones about cash conversion and the durability of the operating raise.

Headline numbers

EPS

Q1 FY2026

$3.70

Revenue

Q1 FY2026

$43.62B

-0.9% YoY

Gross margin

Q1 FY2026

9.7%

Free cash flow

Q1 FY2026

$1.27B

Operating margin

Q1 FY2026

6.7%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$43.62B	-0.9%	$45.29B	-3.7%
EPS	$3.70	—	$2.51	+47.4%
Gross margin	9.7%	—	—	—
Operating margin	6.7%	—	6.3%	+40bps
Free cash flow	$1.27B	—	$2.75B	-53.9%

Guidance

FY2026 adjusted earnings raised $0.50 via tariff benefits, but GAAP EPS and net income lowered; operating cash flow cut $2.2B; capex guidance withdrawn.

Guidance is issued for both next quarter and the full year. Both may appear below.

New guidance

Metric	Period	Guide	YoY
Gross tariff costs	FY2026	$2.5 billion to $3.5 billion	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
EPS-diluted	FY2026	$11.00 - $13.00	$10.62 - $12.62	-$0.38 to -$0.40 (low end -3.5%, high end -3.1%)	Lowered
EPS-diluted-adjusted	FY2026	$11.00 - $13.00	$11.50 - $13.50	+$0.50 (low and high end both raised $0.50)	Raised
EBIT-adjusted	FY2026	$13.0 billion - $15.0 billion	$13.5 billion - $15.5 billion	+$0.5 billion (both ends)	Raised
Net income attributable to stockholders	FY2026	$10.3 billion - $11.7 billion	$9.9 billion - $11.4 billion	-$0.4 billion (low end), -$0.3 billion (high end)	Lowered
Automotive operating cash flow	FY2026	$19.0 billion - $23.0 billion	$16.8 billion - $20.8 billion	-$2.2 billion (low end), -$2.2 billion (high end)	Lowered
Capital spending	FY2026	$10.0 billion - $12.0 billion	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Adjusted automotive free cash flow ($9.0 billion - $11.0 billion)

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
GM North America (GMNA)	$36.401B	-2.6%
GM International (GMI)	$2.859B	+17.8%
GM Financial	$4.275B	+2.7%

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Wholesale vehicle sales volume	899,000 vehicles
North America market share	15.8%
China market share	6.9%

Profitability

Q1 FY2026

Segment	Q1 FY2026
EBIT-adjusted	$4.253 billion
EBIT-adjusted margin	9.7%
ROIC-adjusted	20.8%
Adjusted automotive free cash flow	$1.269 billion

Other KPIs

Q1 FY2026

Segment	Q1 FY2026
Quarterly dividend per share	$0.18

Management tone

Q2 FY2025 tariff impact assessment → Q3 FY2025 earnings-quality bifurcation → Q4 FY2025 confidence reset with capital return → Q1 FY2026 tariff-windfall raise with quiet cash cut.

Two quarters ago the tariff narrative was about active offset architecture and self-help; this quarter management explicitly tied the entire FY2026 EBIT and adjusted EPS raise to a U.S. Supreme Court ruling on certain U.S. tariffs. The Q4 framing — that 2026 net tariff exposure would be lower than 2025 via annualization and onshoring — has been replaced by reliance on a favorable regulatory outcome. Operational self-help is no longer carrying the raise.

The four-lever GMNA margin recovery that Jacobson outlined to Goldman's Mark Delaney one quarter ago — warranty stabilization, tariff offset, EV right-sizing, demand normalization — has inflected. GMNA's 10.1% EBIT-adjusted margin (8.6% ex-tariff) is the cleanest evidence the levers are working, and it clears the 8–10% full-year corridor. In Q&A, Jacobson framed Q1 outperformance as having been "banked for future offset" against $1.5–2B of incremental commodity and freight inflation — a notable shift from prior quarters where outperformance was used to raise guidance, not to absorb forward headwinds.

The new-truck story moved closer to executable. One quarter ago, Jacobson conceded the pickup pricing benefit was a 2027 tailwind, not a 2026 one. This quarter Mark Delaney got management to confirm that heavy-duty truck downtime is largely complete (Jacobson: "I think a lot of that is behind us"), that the new generation is tracking well on quality, and that the Q3/Q4 ramp is intact. The expectations reset from Q4 has been validated in execution.

The China narrative is more nuanced than it looked headed into the print. Vehicle sales fell 21% YoY and share slipped to 6.9%, but equity income improved $120M YoY to $165M and Barra explicitly called out a sixth consecutive profitable quarter. The restructuring is holding on the bottom line even as the top-line volume decline accelerates — a different story from the Q4 equity-loss swing.

Q&A highlights

Itai Mikelli · TD Cowan

What are the specific cost offsets allowing GM to raise guidance despite $1.5-2B in incremental commodity and freight inflation? How should investors think about ARPU opportunity for SDV 2.0 platform in 2028?

Paul Jacobson explained offsets come from Q1 outperformance (warranty, EV profitability, regulatory costs), plus proven playbook for cost management similar to prior crises. Management focused on measured approach to cost reduction without jeopardizing long-term strategic initiatives. On ARPU, emphasized attachment rates, higher volumes and deferred revenue vs. Tesla, with significant opportunity magnifying as SDV 2.0 launches with expanded digital offerings.

Q1 outperformance banked for future offset40% attachment rate on Super Cruise after subscription period13 million subscribers targeted by end of 2026, up 1 million year-over-year$20 monthly average revenue per subscriber

Joe Spack · UBS

Is increased industry discounting in line with expectations from 90 days ago? Could competitor pricing pressure on costs create leeway for GM to increase pricing?

Paul Jacobson stated discounting largely in line with expectations, with competitive challenges being unique but manageable. Attributed some share pressure to inventory constraints rather than pricing competition. Emphasized disciplined tactical approach without heavy discounting, optimistic about reversing share losses as Q2 inventory improves. No indication management will follow competitors into aggressive pricing.

U.S. incentive spend per vehicle remains >2 points below industry averageQ1 dealer inventory down 6% YoY, down 9% for full-size pickupsBegan Q2 with ~47 days of supply42% US full-size pickup market share maintained

Emmanuel Rosner · Wolf Research

What are the primary factors GM is monitoring that could move guidance? What commodity and oil price assumptions are embedded in updated 2026 guidance?

Mary Barra identified Iranian conflict duration and resulting oil/commodity/logistics costs as primary variable being monitored. Paul Jacobson explained guidance assumes current commodity curve persists for the year with current hedges; approximately one-third of steel contracts at spot, one-third expiring within one year, one-third over two years. If conflict ends and commodities return to pre-conflict levels, potential upside exists. Portfolio breadth across trucks and crossovers provides resilience to potential mix shifts.

Iranian conflict identified as #1 variable impacting costsCommodity assumptions based on current forward curve net of hedgesSteel contracts staggered: 1/3 spot, 1/3 within 1 year, 1/3 over 2 yearsCrossovers now 46% of sales, up from 40% in 2023

Mark Delaney · Goldman Sachs

Is the Q1 full-size pickup tooling downtime behind GM, or should investors expect additional material downtime for the new truck launch? Is higher pickup production a tailwind to volumes?

Paul Jacobson confirmed most significant downtime primarily related to heavy-duty trucks is behind GM. Selective downtime possible but mostly can be executed during planned shutdowns. No material downtime anticipated. Higher pickup production from new models is expected to be a tailwind as inventory levels normalize back to target range.

Significant heavy-duty truck downtime largely completedNew generation truck quality tracking wellQ3 ramp beginning, acceleration in Q4Potential small volume impact in latter part of year due to lean inventory entering refresh

James Piccarello · BNP Paribas

How should investors model GM Financial dividend impact on free cash flow? What is the expected timing of the remaining $1B+ in EV restructuring cash charges?

James Piccarello clarified GM Financial dividend stepped up to $650 million in Q1 due to strong cash position, but full-year dividend expectation unchanged. On EV charges, Paul Jacobson stated ~90% of commercial claims already recorded; substantially all remaining cash expected paid before end of Q2. Battery raw material negotiations more complex but will resolve over time. Goal is to resolve issues quickly to refocus supplier relationships on future, not past.

GM Financial Q1 dividend $650 million (stepped up from traditional level)Full-year GMF dividend expectation unchanged~90% of EV supplier commercial claims already recordedRemaining cash charges to be paid substantially by end of Q2 2026

Answers to last quarter's watch list

Q1 FY2026 GMNA EBIT-adjusted margin breaking above 6.2% — GMNA EBIT-adjusted margin came in at 10.1% (8.6% ex the tariff adjustment benefit), well above the 6.2% bar and clearing the 8–10% full-year corridor. The four-lever recovery is showing up in the print. Status: Resolved positively.

Korea tariff rate — The press release introduced a quantified FY2026 gross tariff cost guide of $2.5–3.5B, down from the $3–4B framing carried at Q4. Combined with the ~$0.5B Supreme Court tariff adjustment, the directional read is that tariff exposure is tracking favorably — though the press release did not separately disclose the assumed Korea rate. Status: Resolved positively (on tariff exposure direction, with monitoring on Korea-specific terms).

Adjusted FCF cadence vs. the $9.0–11.0B range — Q1 adjusted automotive FCF was $1.269B, in line with typical seasonal Q1 patterns ahead of Q2–Q4 cash generation. FCF guidance was reaffirmed at $9.0–11.0B. The low end is not yet in play on the cash print itself, but the $2.2B cut to operating cash flow guidance and the withdrawn capex range mean the reaffirmation is mechanical, not directional confidence. Status: Continue monitoring.

China equity loss trajectory after -$513M in Q4 — China equity income was +$165M in Q1 2026, a $120M YoY improvement, and Barra noted the sixth consecutive profitable quarter in China. Vehicle sales (-21% YoY) and share (6.9% vs. 7.6%) continued to weaken, but the equity-income concern coming out of Q4 has reversed. Status: Resolved positively (on equity income; vehicle sales/share continued to decline).

EV unit disclosure and the post-tax-credit demand picture — GM did not break out a Q1 EV unit figure in the headline data. Jacobson's Q&A reference to "EV profitability" as a Q1 outperformance line item is the only signal, and it is qualitative. Without a unit number, the post-tax-credit air pocket remains unmeasurable from this print. Status: Continue monitoring.

Buyback dollars deployed in Q1 — GM executed $800M of buybacks in Q1 despite EV restructuring cash outflows. That is below the $1.5B threshold flagged last quarter and decelerated versus the $2,012M of Q1 FY2025 buybacks disclosed in the cash flow statement. Buyback pacing has slowed as the cash-flow guide deteriorates — consistent with management reserving capital against tariff and EV uncertainty. Status: Resolved negatively.

What to watch into next quarter

Q2 FY2026 operating cash flow cadence vs. the cut $16.8–20.8B FY range — Q1 generated $1.27B of adjusted FCF; the implied Q2–Q4 operating cash flow needs to average ~$5.2–6.7B/quarter to hit the new range. A Q2 operating cash flow print below ~$4.5B signals the cut isn't done.

Replacement capex disclosure — withdrawing the $10–12B range without commentary is the biggest unanswered question in the print. Watch Q2 for either a reinstated range or a one-time capex figure embedded in cash-flow commentary; absence into Q2 is itself a signal.

Q2 GMNA EBIT-adjusted margin holding above ~7% ex-tariff — Q1's 8.6% GMNA margin ex the tariff adjustment needs to sustain to validate the FY EBIT-adjusted midpoint of $14.5B. A reversion in Q2 puts the operational portion of the raise (the part not driven by tariff ruling) at risk.

China vehicle sales and share trajectory — sales -21% YoY and share at 6.9% in Q1. Watch whether Q2 narrows or extends the decline, and whether equity income holds at Q1's $165M run rate as restructuring benefits anniversary.

Buyback pace — Q1 at $800M is below the implied quarterly cadence needed to absorb $9–11B of FCF after the dividend, and well below the $2,012M run-rate from Q1 FY2025. If Q2 buybacks come in below $1.0B, the capital-return re-acceleration narrative from Q4 is breaking.

Pickup pricing realization as the Q3/Q4 ramp begins — Delaney's exchange confirmed downtime is behind GM. Q2 should show the first margin lift from the new-generation truck ramp; absence of pricing tailwind in Q2 pushes the 2027 truck-cycle thesis even further out.

Sources

GM Q1 FY2026 press release and financial highlights — https://www.sec.gov/Archives/edgar/data/1467858/000146785826000033/gmq12026pressreleaseandfin.htm
GM Q1 FY2026 earnings call prepared remarks and Q&A (Barra, Jacobson, Sheffield; analyst exchanges with Itai Mikelli/TD Cowen, Joe Spack/UBS, Emmanuel Rosner/Wolfe Research, Mark Delaney/Goldman Sachs, James Piccarello/BNP Paribas)

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.