We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
How GM Is Gaining Momentum in Software and Services Heading Into 2026
Read MoreHide Full Article
Key Takeaways
GM has generated nearly $2B from software services, driven by rising adoption of OnStar and Super Cruise.
GM exited Q3 2025 with 11M OnStar subscribers and expects over 12M by year-end, up 34% YoY.
GM developed software-defined vehicle platform to reduce complexity and create new recurring revenue streams
U.S. legacy automaker General Motors (GM - Free Report) is moving forward to increase revenues from its software and services, like OnStar and Super Cruise, during and after each vehicle sale. The company has already generated nearly $2 billion revenues (year to date) from OnStar, Super Cruise, and other software services. The deferred revenues were up 14% from second-quarter 2025 to almost $5 billion.
GM ended the third quarter of 2025 with 11 million OnStar globalsubscribers. The figure improved 34% year over year and is on track to exceed 12 million subscribers by year-end. It includes more than 500,000 Super Cruise active subscribers, which nearly doubled year over year.
The company aims to reach 600,000 Super Cruise active subscribers by this year’s end. It expects $200 million Super Cruise revenues in 2025. The technology reported zero crashes, and it has also driven 700 million hands-free miles.
GM takes pride in its autonomous strategy and the development of its next-generation software-defined vehicle platform. The company believes this platform will be transformational, enabling the software layer of each vehicle to evolve independently of the hardware-defined physical layer.
The vehicles will become smarter, more capable, and more personalized over time, which will be beneficial for the customers. The platform, on the other hand, will be more stable and will last longer. GM sees large reductions in complexity and will be able to create new revenue streams from its features and services.
Competitive Context
Chinese EV makers are also doubling down on software-defined vehicles to unlock recurring revenues.
NIO Inc. (NIO - Free Report) is rolling out upgrades to its NIO World Model (“NWM”) platform, enhancing urban and highway NOP Plus, parking, and smart safety features through over-the-air updates. These software improvements are tied to paid driver-assistance packages, allowing NIO to improve vehicle capabilities while building recurring revenue streams. The company’s in-house NX9031 smart driving chip will improve performance and optimize costs, and help scale its software-led strategy.
XPeng Inc. (XPEV - Free Report) is betting big on its advanced XNGP system as a long-term revenue driver. Already active in multiple Chinese cities, XPeng’s hands-free tech handles highway and urban driving, traffic signals, and complex turns. Its push toward map-free driving is designed to scale autonomy faster across regions, strengthening the potential for broader adoption of subscription-based software features.
The Zacks Rundown on GM Stock
Shares of GM have gained 70% in the past six months compared with the industry’s growth of 48.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, GM trades at a forward price-to-sales ratio of 0.42X, down from the industry and its own five-year average. It carries a Value Score of A.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for GM’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
GM stock currently sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
How GM Is Gaining Momentum in Software and Services Heading Into 2026
Key Takeaways
U.S. legacy automaker General Motors (GM - Free Report) is moving forward to increase revenues from its software and services, like OnStar and Super Cruise, during and after each vehicle sale. The company has already generated nearly $2 billion revenues (year to date) from OnStar, Super Cruise, and other software services. The deferred revenues were up 14% from second-quarter 2025 to almost $5 billion.
GM ended the third quarter of 2025 with 11 million OnStar globalsubscribers. The figure improved 34% year over year and is on track to exceed 12 million subscribers by year-end. It includes more than 500,000 Super Cruise active subscribers, which nearly doubled year over year.
The company aims to reach 600,000 Super Cruise active subscribers by this year’s end. It expects $200 million Super Cruise revenues in 2025. The technology reported zero crashes, and it has also driven 700 million hands-free miles.
GM takes pride in its autonomous strategy and the development of its next-generation software-defined vehicle platform. The company believes this platform will be transformational, enabling the software layer of each vehicle to evolve independently of the hardware-defined physical layer.
The vehicles will become smarter, more capable, and more personalized over time, which will be beneficial for the customers. The platform, on the other hand, will be more stable and will last longer. GM sees large reductions in complexity and will be able to create new revenue streams from its features and services.
Competitive Context
Chinese EV makers are also doubling down on software-defined vehicles to unlock recurring revenues.
NIO Inc. (NIO - Free Report) is rolling out upgrades to its NIO World Model (“NWM”) platform, enhancing urban and highway NOP Plus, parking, and smart safety features through over-the-air updates. These software improvements are tied to paid driver-assistance packages, allowing NIO to improve vehicle capabilities while building recurring revenue streams. The company’s in-house NX9031 smart driving chip will improve performance and optimize costs, and help scale its software-led strategy.
XPeng Inc. (XPEV - Free Report) is betting big on its advanced XNGP system as a long-term revenue driver. Already active in multiple Chinese cities, XPeng’s hands-free tech handles highway and urban driving, traffic signals, and complex turns. Its push toward map-free driving is designed to scale autonomy faster across regions, strengthening the potential for broader adoption of subscription-based software features.
The Zacks Rundown on GM Stock
Shares of GM have gained 70% in the past six months compared with the industry’s growth of 48.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, GM trades at a forward price-to-sales ratio of 0.42X, down from the industry and its own five-year average. It carries a Value Score of A.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for GM’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
GM stock currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.