General Motors (GM) reported a record 12 million subscribers for its OnStar platform in the past year, with over 120,000 subscribing to the Super Cruise service, marking an 80% year-over-year growth. OnStar Fleet subscriptions reached 2 million, more than doubling competitors, contributing to a stable cash flow from subscription-based revenues. GM anticipates software and services revenues to grow by approximately $400 million by 2026, with deferred revenues projected to hit $7.5 billion, a 40% increase year-over-year.
The company is set to introduce a second-generation software-defined vehicle architecture in 2028, consolidating key vehicle functions and significantly enhancing over-the-air capabilities. GM’s Super Cruise, an advanced hands-free driver assistance system, will expand across North America and into South Korea, the Middle East, and Europe as part of this initiative.
Currently, GM’s stock has risen by 40% over the last six months, trading at a forward price-to-earnings ratio of 6.5, well below the industry average, with a Zacks Rank of #3 (Hold).
