General Motors digital business could be worth more than Wall Street thinks

General Motors digital business could be worth more than Wall Street thinks

Mon, September 14, 2026 at 9:10 PM GMT+3 2 min read

• GM -2.05%

General Motors Company (NYSE:GM)' digital business is quietly becoming one of its most valuable assets, according to UBS, which raised its price target on the automaker to $114 from $102 on the strength of recurring, high-margin revenue from OnStar and Super Cruise.

UBS forecasts GM's total digital revenue growing from $3.2 billion in 2026 to $9.6 billion by 2036, a compound annual growth rate of roughly 11.5%. Profit contribution from digital is expected to grow from about $2.7 billion in 2026, already 18% of total EBIT, to $7.8 billion by 2036.

The bank said digital creates a recurring, less cyclical, higher margin revenue stream, giving GM opportunities beyond the initial vehicle sale as more of its fleet becomes connected.

OnStar and Super Cruise are GM's current digital revenue drivers. OnStar has more than 12 million customers, and roughly 50% are upgrading to a subscription package with annual ARPU of about $300, adding an estimated $0.4 billion in recurring, high margin cash sales given approximately 2.6 million annual vehicle sales.

Super Cruise's install base now exceeds one million. In 2025, 35,000 vehicles came off a three-year pre-paid subscription, and GM retained about 35% of those customers on ongoing contracts. UBS expects that opportunity to grow sharply as the install base expands, estimating it will be more than eight times the 2025 level by 2029.

UBS forecasts GM's 2026 deferred digital revenue balance at about $7.5 billion, growing to $15 billion over the next decade. By 2036, the bank projects $9.6 billion in total digital revenue, split between $5.4 billion in deferred recognition and $4.2 billion in subscription revenue, the latter driven largely by Super Cruise, which UBS expects to grow at a 47% CAGR.

UBS raised its 2027 price-to-earnings multiple to approximately 7x from 6.5x to reflect the higher valuation it believes GM's digital earnings deserve.