GM Software Margins Near 70%, OnStar Q2 Revenue Hits $800 Million
General Motors reported that its software and services business retains about 70 cents per dollar of revenue, compared with just 4 to 10 cents for vehicle sales. OnStar generated $800 million in second-quarter revenue, while Super Cruise subscription revenue rose 70% year over year. The company projects $7.5 billion in deferred revenue by 2026.
General Motors' software and services business retains approximately 70 cents for every dollar of revenue generated, whereas vehicle sales typically retain only 4 to 10 cents per dollar. Chief Executive Mary Barra stated during the earnings call that the company possesses growth levers and sees opportunities to enhance profitability while reducing its dependence on industry cyclicality.
OnStar contributed $800 million in revenue during the second quarter, and Super Cruise subscription revenue increased 70% year over year. The company expects deferred revenue to reach $7.5 billion by 2026.
Why this event matters
The event has a measured impact on 3 industrys. The strongest current signal is positive for Automotive Services, with intensity 70/100 and 80% confidence over a medium term horizon.
Automotive Services
- Direction
- positive
- Intensity
- 70
- Confidence
- 80%
- Horizon
- Medium term
Conventional Vehicles
- Direction
- positive
- Intensity
- 60
- Confidence
- 70%
- Horizon
- Medium term
New Energy Vehicles
- Direction
- positive
- Intensity
- 50
- Confidence
- 60%
- Horizon
- Medium term
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.