Mobileye Global Inc. (NASDAQ:MBLY) stock fell Thursday after the autonomous driving technology company reported second-quarter results, announced a planned CEO transition and issued an outlook that pointed to lower third-quarter revenue.
Earnings Beat Expectations
Revenue was $508 million, roughly flat from a year earlier but above the analyst consensus estimate of $481.24 million, according to Benzinga Pro.
The company said results benefited from a 3% increase in system shipments driven by stronger customer demand, partly offset by lower average selling prices for EyeQ chips due to higher-than-expected export volumes from Chinese automakers.
Adjusted diluted earnings were 19 cents per share, topping analysts’ estimate of 6 cents per share. GAAP diluted loss was 3 cents per share.
Adjusted operating income rose 46% to $155 million, while adjusted operating margin expanded to 31% from 21% a year earlier. Adjusted net income increased 52% to $155 million.
Gross profit declined 7% to $235 million, and gross margin narrowed 354 basis points to 46%. Adjusted gross margin fell 303 basis points to 66%.
Operating loss improved to $30 million from $74 million a year earlier. Operating cash flow declined to $135 million from $213 million.
The company said profitability benefited from Israel’s new R&D tax credit law, which offset higher corporate tax rates.
CEO To Step Down
Mobileye said founder and CEO Prof. Amnon Shashua plans to step down after the company appoints a successor, as the business enters a new phase focused on operational execution and expansion into robotaxis and humanoid robotics.
The board said it will hire an executive search firm to identify a new chief executive. Shashua will remain on the board and has been offered the role of chairman after the transition. Safroadu Yeboah-Amankwah currently serves as board chairman.
Outlook Raised Despite Near-Term Headwinds
Mobileye raised its full-year 2026 revenue guidance to a range of $1.97 billion to $2.02 billion from its previous forecast of $1.935 billion to $2.015 billion. The updated outlook compares with the analyst consensus estimate of $1.983 billion.
The company also increased its adjusted operating income guidance to $365 million to $425 million from $185 million to $235 million.
For the third quarter, Mobileye expects revenue to decline about 5% to 6% year over year because of shipment volume adjustments.
Shashua said long-term growth will be driven by expanding demand in India and China, higher exports by Chinese automakers, new customer wins and broader adoption of advanced driver-assistance systems.
Chief Communications Officer Dan Galves said exports from Chinese automakers including Geely and Chery have accelerated, with most exported vehicles using Mobileye technology. He said the trend has helped the company outpace the broader automotive market while encouraging legacy automakers to increase ADAS adoption in emerging markets.
Robotaxi Expansion Continues
Shashua said Mobileye recently secured a high-volume 2027 advanced driver-assistance program with Stellantis that will support cloud-enhanced, hands-free highway driving.
He also highlighted progress with Volkswagen Group’s MOIA robotaxi business, which is conducting public testing with safety drivers in Hamburg using Mobileye’s autonomous driving system.
Mobileye plans to launch a fully vertically integrated robotaxi service in at least one U.S. city in 2027. The company said it intends to operate more of the value chain, giving it the flexibility to run its own service, partner with third-party platforms or sell vehicles to robotaxi operators while generating recurring revenue from rider fares.
The company is also repositioning its Moovit business to support the robotaxi strategy, including a rebranding effort aimed at improving consumer recognition.
MBLY Price Action: Mobileye Global shares were down 17.08% at $7.280 at the time of publication on Thursday, according to Benzinga Pro data.
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