GM Targets Over 20% EBIT from $4B Software Business by 2028
GM's high-margin software business, led by 17 million OnStar subscribers and over 300,000 Super Cruise users, has generated a software revenue run rate above $4 billion. Management forecasts that software and subscription earnings will contribute over 20% of adjusted EBIT by 2028, enhancing free cash flow visibility and valuation support.
1. Software and subscription growth
GM's OnStar connectivity business now serves over 17 million subscribers, while its Super Cruise advanced driver assist platform has attracted more than 300,000 users under monthly subscriptions. These high-margin services have driven a software revenue run rate north of $4 billion and management is targeting software and subscriptions to account for over 20% of adjusted EBIT by 2028, underpinning improved free cash flow and valuation metrics.