General Motors' Software Revenue Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 04 2026
0mins
Should l Buy GM?
Source: Yahoo Finance
- Revenue Growth: General Motors expects to generate $3.1 billion in revenue from OnStar and Super Cruise subscriptions in 2023, a significant increase from $1.7 billion in 2020, highlighting the company's potential in high-margin businesses and enhancing shareholder returns.
- Long-Term Subscription Strategy: To combat consumer subscription fatigue, GM plans to offer an eight-year basic subscription to OnStar and three years for Super Cruise starting in 2025, aiming to increase customer renewal rates and enhance loyalty.
- Margin Improvement: GM's average gross margin over the past decade has been just over 16%, while software services typically boast margins nearing 70%, indicating a significant potential for enhanced profitability that could attract more investor interest.
- Competitive Market Advantage: As more vehicles are equipped with infotainment technology and sensors, GM's subscription services have the potential to surpass traditional wholesale business in the coming years, further solidifying its market position in the automotive industry.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise
19 Analyst Rating
14 Buy
4 Hold
1 Sell
Moderate Buy
Current: 78.410
Low
57.00
Averages
95.06
High
122.00
Current: 78.410
Low
57.00
Averages
95.06
High
122.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI and GM Financial. Its GM North America (GMNA) and GM International (GMI) segment develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's GM Financial segment provides automotive financing and related services. The Company is also focused on investing in electric vehicles (EVs) and autonomous vehicles (Avs), software-enabled services and subscriptions and new business opportunities. The Company's portfolio includes OnStar, GM Energy, GM Insurance, GM Genuine Parts, and the GM Company Store. Its OnStar portfolio offers safety, connectivity and hands-free driver assistance technologies. Its GM Energy provides Home EV Charging, Public EV Charging, Vehicle-To-Home and Energy Storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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