General Motors (NYSE: GM) is quietly becoming one of its most valuable assets in the digital space. This has recently been highlighted by the financial institution UBS, which has raised its price target for General Motors stock from $102 to $114. This increase is driven by recurring, high-margin revenue from OnStar and Super Cruise services.
Significant Growth in Digital Revenue
According to UBS forecasts, General Motors' total digital revenue is expected to grow from $3.2 billion in 2026 to $9.6 billion by 2036, representing a compound annual growth rate of nearly 11.5 percent. The share of digital profit from General Motors' EBIT is also projected to increase from about $2.7 billion in 2026, which is 18 percent of total EBIT, to $7.8 billion by 2036.
Read more: Positive Movement in Corn Prices in Futures Trading
New Opportunities in the Digital Market
UBS has emphasized that the digital sector generates recurring and less cyclical revenue with higher margins, providing General Motors with opportunities beyond initial vehicle sales. OnStar and Super Cruise are recognized as the main drivers of General Motors' digital revenue. OnStar has over 12 million customers, with nearly 50 percent upgrading to subscription packages, which brings an average revenue per user (ARPU) of about $300 annually and generates an estimated $0.4 billion in recurring, high-margin revenue.
The installed base of Super Cruise has now reached over one million. In 2025, 35,000 vehicles exited a three-year prepaid subscription, and General Motors retained about 35 percent of those customers in ongoing contracts. UBS expects this opportunity to significantly increase with the expansion of the installed base and predicts that this figure will be more than eight times the 2025 level by 2029.
Ultimately, UBS forecasts that General Motors' backlog of digital revenue will be about $7.5 billion in 2026 and will increase to $15 billion over the next decade. By 2036, the bank predicts that total digital revenue will reach $9.6 billion, which includes $5.4 billion in deferred recognition and $4.2 billion in subscription revenue, a significant portion of which is expected to come from Super Cruise, which UBS anticipates will grow at an annual rate of 47 percent.
Read more: Block Stock Rose 1.6% to $80.45 · Historic Competition Between General Motors and Ford in the Battlefield and Power Grid
