A month has gone by since the last earnings report for General Motors (GM Quick QuoteGM - Free Report) . Shares have added about 9.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is General Motors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

General Motors Q1 Earnings Surpass Expectations

General Motors delivered first-quarter 2026 adjusted earnings of $3.70 per share, which rose 33% from $2.78 a year ago. The figure topped the Zacks Consensus Estimate of $2.61 by 41.8%. Revenues of $43.62 billion slipped 0.9% year over year and missed the consensus mark of $43.94 billion by 0.7%.

Total company EBIT-adjusted rose 21.9% year over year to $4.25 billion, lifting the EBIT-adjusted margin to 9.7%. The quarter reflected strong execution in the core business alongside benefits tied to tariff-related adjustments. As an indicator of momentum in software-enabled services, OnStar ended the quarter with deferred revenues of $5.8 billion, up more than 50% year over year.

GM’s Segments Show Broad-Based Strength

GM North America (GMNA) segment generated net revenues of $36.4 billion, down from $37.4 billion recorded in the corresponding period of 2025. Wholesale vehicle sales in the GMNA unit totaled 793,000 units, down from 827,000 units reported in the year-ago quarter. GMNA remained the primary profit engine, generating EBIT-adjusted of $3.66 billion and an EBIT-adjusted margin of 10.1%. The margin included a 1.5-percentage-point benefit from the tariff adjustment, while cost efficiencies and forex helped offset weaker volumes.

GM International (GMI) segment net revenues in the reported quarter amounted to $2.9 billion, up from the year-ago quarter’s $2.4 billion. The segment’s wholesale vehicle sales of 106,000 units increased from 85,000 units in the year-ago quarter. The segment posted EBIT-adjusted of $123 million, up from $30 million in the year-ago quarter. China equity income increased to $165 million, aided by operating performance and restructuring benefits.

GM Financial generated net revenues of $4.27 billion in the quarter, which increased from $4.16 billion recorded in the year-ago period. The segment delivered EBT-adjusted of $688 million, up from $685 million in the year-ago quarter.

GM’s U.S. Playbook Focused on Pricing Discipline

In the United States, GM retained its leadership position in total sales with 626,000 deliveries in the quarter, supported by resilient demand for pickups and SUVs and strong fleet performance. Dealer inventory ended the period at 516,000 units, down about 6% year over year, which supports tighter supply and lower incentive needs.

That discipline showed up in incentives, which management said were 4.4% of MSRP at quarter end, well below the industry average of 6.6%. GM also cited an average transaction price of $52,000, maintained through a portfolio spanning multiple price points.

General Motors’ Digital Services Boosted Earnings

GM’s growing digital ecosystem continued to scale, with Super Cruise positioned as a key catalyst. Recognized Super Cruise revenues increased roughly 85% year over year, and the company added about 50,000 new customers during the quarter.

Usage trends were also notable, with 1.0 billion miles driven using Super Cruise. GM expects to surpass 850,000 paid Super Cruise subscribers by the end of 2026, while describing OnStar’s evolution toward an AI-powered connected intelligence platform.

General Motors’ Cash Generation Funded Buybacks

Adjusted automotive free cash flow rose to $1.27 billion from $811 million a year ago, reflecting tariff-related reimbursements and lower capital spending, partially offset by the absence of an Ultium Cells dividend seen in the prior-year period. Automotive operating cash flow was $533 million, down sharply from the year-ago quarter.

Still, GM continued to return capital, repurchasing $0.8 billion of stock in the quarter and retiring 10.7 million shares, with $5.5 billion remaining on its authorization.

The company ended the quarter with $19.8 billion in cash and cash equivalents and automotive long-term debt of $15.52 billion, maintaining a solid liquidity position.

GM’s EV Realignment Charges Stayed in Focus

Special items in the quarter were dominated by EV strategic realignment actions, which totaled $1.08 per share on an adjusted basis. Management pointed to non-cash charges tied to shifting the Orion assembly plant from EV to ICE production, the decision to discontinue the BrightDrop electric van, and impairments of certain EV-related assets.

Cash charges were primarily linked to contract cancellations and supplier commercial claims. GM said about 90% of expected total supplier commercial-claim costs had been recorded as of the first quarter, with most related cash flows expected to occur by the end of 2026.

GM Raises 2026 Outlook on Lower Gross Tariff Costs

Management increased full-year 2026 EBIT-adjusted guidance to $13.5-$15.5 billion (versus $13-$15 billion guided earlier) and lifted its adjusted earnings outlook to $11.50-$13.50 per share (compared with the prior forecast of $11-$13 per share). The revision reflects a favorable adjustment of about $0.5 billion tied to a U.S. Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act.

GM now expects gross tariff costs of $2.5-$3.5 billion in 2026, down from the prior forecast of $3-$4 billion, while maintaining its adjusted automotive free cash flow target of $9-$11 billion. The board also declared a quarterly dividend of 18 cents per share, to be paid out on June 18, 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, General Motors has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, General Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

General Motors is part of the Zacks Automotive - Domestic industry. Over the past month, Tesla (TSLA Quick QuoteTSLA - Free Report) , a stock from the same industry, has gained 18.1%. The company reported its results for the quarter ended March 2026 more than a month ago.

Tesla reported revenues of $22.39 billion in the last reported quarter, representing a year-over-year change of +15.8%. EPS of $0.41 for the same period compares with $0.27 a year ago.

For the current quarter, Tesla is expected to post earnings of $0.45 per share, indicating a change of +12.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Tesla. Also, the stock has a VGM Score of C.