Mobileye Narrows 2026 Revenue Guidance as Q3 Sales Slip 2%

Mobileye Global Inc. (MBLY ) on October 29, 2026 released its financial results for the three months ended September 26, 2026, reporting third-quarter revenue of $492 million, down 2% from $504 million a year earlier, and narrowing its full-year 2026 revenue guidance to a range of $1,995 million to $2,020 million with the midpoint raised by $13 million. All amounts are stated in U.S. dollars.

According to the company’s third-quarter 2026 earnings release, Mobileye’s GAAP operating loss narrowed to $82 million from $109 million in the prior-year quarter, which the company reported as a 25% year-over-year improvement, while adjusted operating income, a non-GAAP measure, rose 20% to $89 million from $74 million. GAAP net loss was $67 million versus $96 million a year earlier, and GAAP diluted loss per share was $0.08 versus $0.12. Adjusted net income rose 25% to $95 million from $76 million, adjusted diluted earnings per share rose to $0.11 from $0.09, and adjusted gross profit declined 7% to $314 million.

Mobileye attributed the revenue decline primarily to a 5% decrease in average system price, mainly reflecting a higher mix of China OEM export volumes, which carry less software content and therefore lower pricing, together with lower SuperVision volumes; higher EyeQ volumes partially offset those effects. The company said SuperVision deliveries exceeded its expectations and that the pass-through of higher memory costs added approximately $7 million to third-quarter revenue at zero gross margin. Supplemental data in the release show combined EyeQ and SuperVision revenue of $468 million on 9.5 million systems shipped in the quarter, an average system price of $49.1, versus $478 million on 9.2 million systems and an average system price of $51.7 in the third quarter of 2025.

GAAP gross margin rose to 53% from 48%, a 483-basis-point increase the company attributed to a decrease in amortization of intangible assets as a percentage of revenue. Adjusted gross margin fell to 64% from 67%, a 304-basis-point decrease attributed primarily to the lower EyeQ average selling price, driven by the higher mix of Chinese OEM shipments, and higher EyeQ-related cost per unit. The higher-than-expected SuperVision volume and the memory cost pass-through together reduced the corporate average gross margin by approximately 100 basis points relative to the company’s expectations, Mobileye said.

Both operating margin and adjusted operating margin increased year over year, which the company attributed primarily to an incentive grant recognized under the Israeli Law for the Encouragement and Incentivization of Research and Development 2026. The law was enacted during the second quarter of 2026 and applies from the beginning of 2026. The grant benefited GAAP and non-GAAP operating income by $52 million and $51 million, respectively, in the third quarter, and by $162 million and $144 million, respectively, in the first nine months of the year. Mobileye said it expects the benefit to extend into future years, subject to future changes in the law, and that cash receipts associated with the benefit recognized in 2026 are expected to begin in 2028. A related component tied to ordinary income from the sale of shares received from the settlement of RSUs, listed as a negative $18 million adjustment, is included in the 2026 outlook only for the first three quarters because it cannot be estimated precisely, the company said.

Updated Full-Year 2026 Guidance

Mobileye raised its full-year 2026 revenue guidance midpoint by 1% while narrowing the range to $1,995 million to $2,020 million from $1,970 million to $2,020 million, an increase the company said primarily reflects higher-than-expected SuperVision deliveries and the memory cost pass-through in the third quarter. The updated range implies 5% to 7% year-over-year revenue growth. The company narrowed its expected GAAP operating loss to a range of $4,087 million to $4,127 million from $4,094 million to $4,154 million, a 0.4% improvement at the midpoint, and moved its adjusted operating income outlook to $380 million to $420 million from $365 million to $425 million, a 1% increase at the midpoint. The adjusted operating income outlook continues to include approximately $190 million from the R&D Law incentive at the midpoint. Mobileye said the modest conversion of incremental revenue to adjusted operating income reflects SuperVision’s lower gross margin relative to the corporate average and the zero-margin memory cost pass-through. The guidance table includes an unchanged $3,788 million goodwill impairment line, $346 million of amortization of acquired intangible assets, and $385 million of share-based compensation expense, the latter revised from $396 million.

Design Wins and Robotaxi Milestones

President and CEO Prof. Amnon Shashua said in the release: “In the first nine months of 2026, our 2026 EyeQ shipment volume was up 11% compared to 2025. This was well ahead of global automotive production, which declined an estimated 1%.” Mobileye said it expects shipments to its top 10 customers to grow 7% in 2026, including changes in safety stock inventory, even as those customers’ aggregate vehicle production is expected to decline 5%.

The company said it recently secured new Cloud-Enhanced ADAS design wins, pairing front-camera sensing with Road Experience Management, with a Top 5 global automaker from Asia and a Top 10 global automaker from Japan to support high-volume Level 2+ systems. Those programs build on the previously announced nomination to supply Cloud-Enhanced ADAS for select future Stellantis vehicles in the United States beginning in 2027, a project Mobileye said was recently expanded to include European platforms. The company also said it expects worldwide volume in the L2+ highway hands-free segment to grow at an approximate 20% compound annual growth rate through the end of the decade, and that its EyeQ system-on-chip is present in the majority of vehicles produced in North America and Europe in 2026 within that segment.

In robotaxi activity, Mobileye said its customers began autonomous ridepooling for the public in Hamburg, Germany, with safety drivers, and that closed-user-group testing began in the greater Orlando, Florida, area. The same platform received an autonomous driving permit enabling Holo to publicly deploy in Norway, and Deutsche Bahn chose the HOLON Urban vehicle, enabled by Mobileye’s self-driving system, to serve public transit corridors in multiple German regions, according to the company. Based on data published by Germany’s Federal Motor Transport Authority, Mobileye estimated that as of August, vehicles incorporating Mobileye Drive account for more than 60% of vehicles authorized for Level 4 testing in Germany.

Mobileye said it is engaging potential vendors for vehicle platform supply, self-driving-system installation and upfit, and fleet logistics support as part of its previously announced expansion into vertically integrated commercial mobility as a service. The company invested in the Series B funding round of Beep, Inc., which closed last month, and said it has accelerated Moovit’s execution of its customer-facing app, fleet optimization and rider engagement applications. Mobileye also said Nvidia recently recognized Mentee Robotics’ MenteeBot, a humanoid robot developer Mobileye acquired in 2026, as being at the forefront of embodied AI innovation.

For the nine months ended September 26, 2026, net cash provided by operating activities was $303 million, versus $489 million in the same period a year earlier, while purchases of property and equipment totaled $72 million versus $52 million. Cash paid for the acquisition of Mentee Robotics, net of cash acquired, was $591 million for the nine-month period. Share repurchases totaled $33 million through the end of the third quarter, executed after the repurchase program was announced on April 23, 2026. At September 26, 2026, Mobileye reported $1.5 billion of cash and cash equivalents, marketable securities and deposits on its balance sheet, consisting of $1,346 million of cash and cash equivalents and $153 million of marketable securities and deposits.

The company’s nine-month net loss was $3,906 million, which included the $3,788 million goodwill impairment, compared with a net loss of $265 million in the prior-year period; nine-month revenue was $1,558 million versus $1,448 million.

Mobileye scheduled a conference call and live webcast for 8:00 a.m. Eastern Time (2:00 p.m. Israel time) on October 29, 2026, to review the results and provide a general business update, with a replay to be made available on its investor relations site.