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Can OnStar and Super Cruise Drive GM's Digital Revenue Growth?
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Key Takeaways
GM's OnStar deferred revenue rose 40% to $6.8 billion in the third quarter of 2026.
Super Cruise revenue is expected to approach $400 million in 2026.
GM plans to expand Super Cruise across its truck portfolio, targeting four to five times higher penetration.
General Motors (GM - Free Report) is increasingly looking beyond vehicle sales to build a recurring software and services business. Its OnStar connected services platform and Super Cruise hands-free driving technology are emerging as key contributors to this strategy. A growing subscriber base, wider technology adoption and subscription renewals could help GM increase revenue per vehicle and build a more predictable, margin-accretive revenue stream.
OnStar and Super Cruise Strengthen GM's Digital Revenue Base
GM's digital business is gaining scale, supported by rising OnStar subscriptions and growing adoption of Super Cruise. OnStar ended the third quarter of 2026 with $6.8 billion in deferred revenue, up about 40% year over year, while recognized revenue exceeded $800 million, up 15%. The company expects to add approximately 1 million subscribers in 2026, taking its global subscriber base close to 13 million. Management also expects software and services deferred revenue to approach $7.5 billion by year-end, with realized revenue exceeding $3 billion.
Super Cruise is another growth driver. The technology ended 2025 with more than 620,000 subscribers, up approximately 80% year over year, and generated $234 million in revenue. GM expects Super Cruise revenue to approach $400 million in 2026 and its subscriber base to exceed 850,000 by year-end. In the third quarter, recognized revenue increased roughly 60%, while GM delivered nearly 83,000 Super Cruise-equipped vehicles, taking year-to-date deliveries above 243,000.
Importantly, the subscription attach rate after the initial three-year prepaid period remained at 30-40%, providing opportunities for continued recurring revenue. Super Cruise-equipped vehicles also travel more than 1 million cumulative hands-free miles daily, while nearly 70% of customers use the technology at least once a month.
GM is looking to build on this momentum through its next-generation 2027 Chevrolet Silverado and GMC Sierra light-duty pickups. Super Cruise will be standard on high-end trims and optional on most others. Management expects the technology's penetration across its full-size truck portfolio to increase four to five times in 2027.
The opportunity is also attracting Ford (F - Free Report) and Tesla (TSLA - Free Report) , which are expanding their own connected services and driver-assistance offerings. Ford reported more than 1.7 million active paid software subscriptions through September 2026, up more than 40% year over year. BlueCruise and connectivity were among the largest contributors to software services growth, while Ford and Lincoln customers accumulated nearly 14 million hours of hands-free highway driving.
Tesla, meanwhile, reported more than 1.7 million global paid Full Self-Driving (FSD) customers in the third quarter, with subscriptions accounting for 50% of the base for the first time. More than 75% of its North American deliveries included an FSD subscription sign-up at delivery, approximately 20% higher than in the previous quarter. FSD was also available in nine European Union countries, with more than 100,000 customers using the technology.
Despite the opportunity, GM must sustain subscriber additions and improve renewals after the initial prepaid period. The 30-40% Super Cruise attach rate indicates that converting existing users into paying subscribers remains an important challenge. Competition from peers could also influence pricing, adoption and customer retention. Nevertheless, GM's expanding OnStar subscriber base, rising Super Cruise revenue and broader availability across its truck portfolio position software and services as an increasingly important contributor to its long-term growth strategy.
The Zacks Rundown for GM
Shares of GM have popped 21.3% in a year compared with its industry’s 9% fall.
Image Source: Zacks Investment Research
GM is currently trading at a forward 12-month price-to-sales of 0.39X, lower than the industry’s average of 3.21X. It carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GM for 2026 earnings implies year-over-year growth of 26.1%.
Image Source: Zacks Investment Research
The consensus estimate for EPS for fiscal 2026 has moved northward over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can OnStar and Super Cruise Drive GM's Digital Revenue Growth?
Key Takeaways
General Motors (GM - Free Report) is increasingly looking beyond vehicle sales to build a recurring software and services business. Its OnStar connected services platform and Super Cruise hands-free driving technology are emerging as key contributors to this strategy. A growing subscriber base, wider technology adoption and subscription renewals could help GM increase revenue per vehicle and build a more predictable, margin-accretive revenue stream.
OnStar and Super Cruise Strengthen GM's Digital Revenue Base
GM's digital business is gaining scale, supported by rising OnStar subscriptions and growing adoption of Super Cruise. OnStar ended the third quarter of 2026 with $6.8 billion in deferred revenue, up about 40% year over year, while recognized revenue exceeded $800 million, up 15%. The company expects to add approximately 1 million subscribers in 2026, taking its global subscriber base close to 13 million. Management also expects software and services deferred revenue to approach $7.5 billion by year-end, with realized revenue exceeding $3 billion.
Super Cruise is another growth driver. The technology ended 2025 with more than 620,000 subscribers, up approximately 80% year over year, and generated $234 million in revenue. GM expects Super Cruise revenue to approach $400 million in 2026 and its subscriber base to exceed 850,000 by year-end. In the third quarter, recognized revenue increased roughly 60%, while GM delivered nearly 83,000 Super Cruise-equipped vehicles, taking year-to-date deliveries above 243,000.
Importantly, the subscription attach rate after the initial three-year prepaid period remained at 30-40%, providing opportunities for continued recurring revenue. Super Cruise-equipped vehicles also travel more than 1 million cumulative hands-free miles daily, while nearly 70% of customers use the technology at least once a month.
GM is looking to build on this momentum through its next-generation 2027 Chevrolet Silverado and GMC Sierra light-duty pickups. Super Cruise will be standard on high-end trims and optional on most others. Management expects the technology's penetration across its full-size truck portfolio to increase four to five times in 2027.
The opportunity is also attracting Ford (F - Free Report) and Tesla (TSLA - Free Report) , which are expanding their own connected services and driver-assistance offerings. Ford reported more than 1.7 million active paid software subscriptions through September 2026, up more than 40% year over year. BlueCruise and connectivity were among the largest contributors to software services growth, while Ford and Lincoln customers accumulated nearly 14 million hours of hands-free highway driving.
Tesla, meanwhile, reported more than 1.7 million global paid Full Self-Driving (FSD) customers in the third quarter, with subscriptions accounting for 50% of the base for the first time. More than 75% of its North American deliveries included an FSD subscription sign-up at delivery, approximately 20% higher than in the previous quarter. FSD was also available in nine European Union countries, with more than 100,000 customers using the technology.
Despite the opportunity, GM must sustain subscriber additions and improve renewals after the initial prepaid period. The 30-40% Super Cruise attach rate indicates that converting existing users into paying subscribers remains an important challenge. Competition from peers could also influence pricing, adoption and customer retention. Nevertheless, GM's expanding OnStar subscriber base, rising Super Cruise revenue and broader availability across its truck portfolio position software and services as an increasingly important contributor to its long-term growth strategy.
The Zacks Rundown for GM
Shares of GM have popped 21.3% in a year compared with its industry’s 9% fall.
GM is currently trading at a forward 12-month price-to-sales of 0.39X, lower than the industry’s average of 3.21X. It carries a Value Score of A.
The Zacks Consensus Estimate for GM for 2026 earnings implies year-over-year growth of 26.1%.
The consensus estimate for EPS for fiscal 2026 has moved northward over the past 60 days.
GM currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.