GM Bumps up Outlook as Truck Demand Powers through a Messy Quarter

With input from Bloomberg, the Wall Street Journal, and Reuters.

General Motors is leaning into a surprisingly strong start to the year, lifting its 2026 profit forecast after a solid first quarter driven largely by truck sales – and a bit of help from Washington.

The Detroit giant posted a 22% jump in core profit, hitting $4.3 billion for the quarter and easily beating expectations. Investors liked what they saw. The stock climbed in early trading.

There’s a twist, though. GM’s brighter outlook partly hinges on a roughly $500 million refund tied to a US Supreme Court decision that knocked out some Trump-era tariffs. That same amount got added straight into its full-year forecast, which now sits between $13.5 billion and $15.5 billion.

Under the hood, things look more complicated. Costs are creeping up again – raw materials, chips, logistics – all getting pricier. GM now expects those pressures to shave as much as $2 billion off earnings this year, more than it had previously penciled in.

Even so, the company is squeezing more profit out of fewer sales. Revenue barely moved, dipping less than 1% to $43.6 billion, while net income slipped 6%, dragged down by a hefty $1.1 billion charge tied to scaling back electric vehicle programs. Sales volumes dropped too, down about 10% in the quarter.

Margins told a different story. In North America, GM’s most important market, profit margins climbed to just over 10%. Higher vehicle prices helped – the average transaction price in the US rose to about $52,000 – along with lower warranty costs and looser emissions rules.

CEO Mary Barra acknowledged the uneven backdrop, pointing to tariffs, rising fuel costs, and a jittery job market. Still, she said demand has held up better than expected. Buyers keep showing up, especially for pickups, even with gas prices climbing past $4 a gallon earlier this spring.

That resilience has been key. Trucks remain GM’s profit engine, and for now, they’re carrying the load.

Elsewhere, there are small signs of improvement. GM’s China business, long a weak spot, posted better results, while its international operations outside China also turned in modest gains.

Electric vehicles remain a drag. The company has been dialing back production after demand cooled, a shift that’s already led to billions in writedowns. It’s a sharp contrast to the optimism that surrounded EVs just a couple of years ago.

For now, GM is sticking with what works: bigger vehicles, better pricing, and a cautious eye on costs. The environment isn’t getting any simpler – but the company is still finding ways to make money in it.