How GM Is Gaining Momentum in Software and Services Heading Into 2026

U.S. legacy automaker General Motors GM 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 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 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%.

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.

See how the Zacks Consensus Estimate for GM’s earnings has been revised over the past 90 days.

GM stock currently sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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