Mobileye Global Inc.

What they do

Mobileye develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies, built on purpose-built software and hardware including its EyeQ system-on-chips. As of June 27, 2026, its solutions had been installed in approximately 1,400 vehicle models and its SoCs deployed in more than 258 million vehicles, and it works with more than 50 OEMs worldwide. On February 3, 2026, it completed the acquisition of Mentee Robotics, a humanoid robotics company, expanding into what it describes as Physical AI across autonomous driving and humanoid robotics.

Revenue drivers

• Commercially deployed ADAS solutions (including Premium ADAS) — The company currently derives substantially all of its revenue from commercially deployed ADAS solutions, including Premium ADAS; this is the base business, with revenue of $1.89 billion in fiscal 2025.
• Next-generation advanced solutions (Surround ADAS, SuperVision, Chauffeur, Drive) — These solutions, propelled by the EyeQ 6 SoC and subsequent generations, are approaching start of production; management expects them to meaningfully change the revenue mix over time.
• Cloud-Enhanced ADAS design win (Stellantis) — Added in Q2 2026, a high-volume program with gross profit per unit roughly equivalent to Surround ADAS and more than double the company's current average base ADAS profitability.
• Robotaxi and mobility services (MOIA, Holon, Moovit) — Preparations for commercial robotaxi services with Volkswagen Group company MOIA continued in Q2 2026, with public user testing in Hamburg, Germany; the company is also engaged with potential vendors for vehicle platform supply and fleet logistics.

Recent performance

Second quarter 2026 revenue was $508 million, roughly flat versus $506 million in Q2 2025. GAAP gross margin declined to 46% from 50% (down 354 bps), while operating loss improved 59% to $(30) million from $(74) million. Diluted EPS (GAAP) was $(0.03) and Adjusted Diluted EPS (Non-GAAP) was $0.19. For the six months ended June 27, 2026, net cash from operating activities was $210 million and the company reported $1.4 billion of cash, cash equivalents, marketable securities and deposits.

Strategy

Management is focused on converting heavy multi-year R&D spending into revenue from advanced consumer automotive products, self-driving-system supply, robotaxi services, and humanoid robotics. It is preparing advanced product launches in late 2026 and throughout 2027. The company expanded its vertically integrated commercial mobility-as-a-service efforts, engaging potential vendors for vehicle platform supply, self-driving-system installation and upfit, and fleet logistics, while accelerating Moovit's customer-facing app, fleet optimization, and rider engagement applications. The Q2 2026 results benefited from the Israeli R&D Law enacted in the quarter, which applies from the beginning of 2026 and which management expects to sustainably raise the margin baseline.

Risks

• Product development and R&D execution — If Mobileye is unable to develop and introduce new solutions or improve existing ones cost-effectively and on time, its competitive position and financial condition would be adversely affected.
• Supply chain and single-source reliance — The company has previously experienced EyeQ SoC supply constraints during the 2021-2022 semiconductor shortage and relies on a single supplier or limited suppliers for certain components, equipment, and services.
• Design-win conversion uncertainty — Mobileye invests significant money pursuing OEM selection, and there is no assurance those efforts result in production-model selection, which would harm future results if a design win is not achieved.
• Geopolitical and Israel operations — Operations are subject to adverse conditions in Israel, including war and regional conflict; as of July 15, 2026, approximately 2.4% of employees had been called to reserve duty in the Israel Defense Forces.

Outlook

Full-year 2026 revenue guidance was narrowed to $1,970 million to $2,020 million, implying 4% to 7% year-over-year growth, with the midpoint increased by $20 million. Management raised the midpoint for Adjusted Operating Income (Non-GAAP) by 88% and decreased the midpoint for Operating Loss (GAAP) by 4%, primarily due to the R&D incentive grant under the Israeli R&D Law. For the full year, the company incorporated $197-$217 million (GAAP) and $180-$200 million (Non-GAAP) of R&D incentive into guidance; the R&D Law has no scheduled expiration date.