$STLA drops 10% despite Q1 beat; net revenue rises 6% to €38.1B

A 10% stock drop overshadowed what looked, on the surface, like a first-quarter earnings beat for Stellantis $STLA. Shares of the Jeep maker fell as much as 10% on April 30 after the company reported adjusted operating income of €960 million, ahead of analyst expectations cited by CNBC. Net revenue rose 6% year over year to €38.1 billion, while net profit improved to €377 million from a €387 million loss in the prior-year quarter.

The company’s official Q1 2026 financial-results statement described the quarter as a “return to profitability.” Stellantis said adjusted operating income reached about €1.0 billion with an AOI margin of 2.5%. It also reported industrial free cash flow of negative €1.9 billion, a 37% improvement from a year earlier despite roughly €0.7 billion of cash outflows tied to 2025 charges. Industrial available liquidity ended the quarter at €44.1 billion, and 2026 guidance was reaffirmed.

That combination explains the split between the income statement and the stock reaction. Investors got positive headline numbers, but they also got a reminder that cash generation remains weak and the turnaround is still early. CNBC noted that the company is only now starting to publish quarterly profit data rather than reporting profit on a semiannual basis. Analysts at Citi called the print a headline beat but “messy,” a phrase that captures why a return to profit was not enough to support the shares on the day.

Operationally, North America was the main contributor to the revenue improvement, and management said products launched in 2025 were well received. Stellantis also said it plans to launch 10 new vehicles in 2026, which gives the market a near-term product cycle to judge against the company’s promise of more sustainable profitable growth.

The next markers are clearer than the market reaction was. Investors will watch the May investor-day messaging, the path of AOI margin, cash-flow conversion, and whether North American volume and pricing can keep improving fast enough to turn a headline recovery into a higher-quality earnings story.