DETROIT (WWJ) -- GM made $2.6 billion in the first quarter of 2026, and expects a strong year ahead. But with that optimism, comes a warning.
"The war in Iran has raised our costs, and it's duration remains uncertain," said GM CEO Mary Barra. "We are working to offset these cost pressures by reducing spending in other areas, and continuing to find efficiencies across the business."
GM's strong first quarter performance was fueled by strong sales of pickups and SUVs. There have been concerns that higher gas prices could change consumer behavior, a trend that Barra is closely watching.
She said she's not seen a change in consumer behavior yet. If it does change, Barra says GM is ready to adapt to those changes.
"I think we're well prepared with a portfolio, I'd stand against anyone when we look at how consumer behavior might shift depending on how long the war lasts, but we just don't know."
GM expects to earn between $9.9 billion and $11.4 billion for the full year..
“We have solid momentum in our core operations,” said Barra. “We maintained sales leadership in the U.S. and Canada. We led the U.S. industry in full-size pickup sales and share.”
Pre-tax (what the industry calls EBIT adjusted), GM earned $4.3 billion. $3.7 billion of that was here in North America. That’s an important number because it’s what profit sharing is based on.
The recent Supreme Court decision on tariffs meant GM will receive a $500 billion tariff refund. The company now expects gross tariff costs between $2.5 and $3.5 billion for the full year.
General Motors also announced a dividend of $0.18 a share.
Analysts expected GM to have the strongest earnings picture of the Detroit Three.
We'll hear from Ford on Wednesday and Stellantis on Thursday.
Barra says GM remains focused on delivering 8 to 10% margins for the year.
“We are clearly operating in a very dynamic environment, which isn’t unusual for this industry,” she told shareholders. “That’s why we have had a multi-year focus to ensure we have the right products, the right team and a strong balance sheet.”
