GM shares drop 4% despite Q1 earnings beat and raised 2026 profit outlook on tariff relief.

General Motors reported stronger-than-expected Q1 earnings with revenue of $43.6 billion and adjusted EPS of $3.70, beating estimates. The company raised its full-year 2026 profit outlook, helped by a favorable US Supreme Court ruling reducing tariff costs. Despite this, shares fell 4% due to ongoing challenges in the electric vehicle market, higher costs, and weaker automotive cash flow. GM's North America segment and growing software business remain key profit drivers as the company navigates market pressures.