Mobileye Global Inc. MBLY reported first-quarter 2026 earnings of 12 cents per share, which beat the Zacks Consensus Estimate of 8 cents. The company delivered an earnings surprise of 58.52%, with the bottom line rising 50% year over year, driven by higher EyeQ system-on-chip shipments.
The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye Global Inc. Price, Consensus and EPS Surprise
Mobileye Global Inc. price-consensus-eps-surprise-chart | Mobileye Global Inc. Quote
MBLY’s Volume Upside Driven by Mix and Restocking
The quarter was supported by strong and sustained demand for EyeQ, with this momentum continuing into the second quarter. Shipments increased due to higher market share and stronger ADAS shipment rates among key Western customers, along with a notable boost from solid export volumes by Chinese automakers.
Shipments were also supported by customers rebuilding their inventory. After reducing stock in late 2025, customers raised it from very low levels back to a normal range of about four to five weeks, which helped boost unit shipments during the period.
Progress Across Advanced Programs
Beyond growth in its core ADAS business, Mobileye made progress on its advanced products. In robotaxis, Volkswagen and MOIA moved forward with the ID. The Buzz self-driving vehicle program includes early production work at Volkswagen’s Hanover plant and ongoing testing on public roads in several cities.
For SuperVision, the EyeQ6 High-based system was used in pre-production vehicles in the United States. It completed a long drive of over 2,000 km on an unplanned route, covering city, suburban, and highway roads, and even tough weather conditions. This confirms that the system functions well upon deployment in a new region.
MBLY’s Profitability Reflects Operating Leverage
On a GAAP basis, results were heavily affected by a non-cash goodwill impairment charge of $3.8 billion, which caused an operating loss of $3.9 billion and a net loss of $3.8 billion. Excluding that charge and other items, non-GAAP profitability showed operating leverage from stronger revenues.
Gross margin improved to 49% from 47% a year ago, aided by similar amortization levels on a higher revenue base, though partially offset by a different EyeQ product mix that lifted cost per unit. Adjusted gross margin was 66%, down from 69% in the prior-year quarter, reflecting the same mix-related cost pressure. Adjusted operating income rose to $95 million from $59 million, lifting adjusted operating margin to 17% from 13% in the year-ago period.
Mobileye’s Product Metrics Show Expanding Scale
Supplemental metrics showed that the quarter’s growth was mainly driven by higher unit shipments. EyeQ and SuperVision revenues totaled $535 million in the first quarter, while systems shipped amounted to 10.8 million, resulting in an average system price of $49.3. Shipments were up from 8.5 million a year ago, showing that growth was mainly due to higher volumes, including some boost from customers restocking inventory.
The company is seeing good growth in India, with new deals from Mahindra for both SuperVision and Surround ADAS. As India remains a developing ADAS market, this win boosts growth prospects.
MBLY Raises 2026 Revenue Outlook & Adds a Buyback
After a strong start to the year, the company raised its full-year 2026 outlook. It now expects revenues to be between $1,935 million and $2,015 million, up from the previous guidance of $1,900-$1,980 million. It also expects adjusted operating income to be in the band of $185-$235 million, up from the previous estimate of $170-$220 million.
The company has released its GAAP outlook, expecting an operating loss of $4,281 million to $4,331 million for 2026. This includes $346 million in amortization costs, $376 million in stock-based compensation, a large $3,788 million goodwill impairment from the first quarter, and $6 million in acquisition-related expenses.
It has also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
MBLY stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Releases
Aeva Technologies, Inc. AEVA is slated to release first-quarter 2026 results on May 6.The Zacks Consensus Estimate for AEVA’s loss and revenues is pegged at 44 cents per share and $4.67 million, respectively. AEVA surpassed earnings estimates in two of the trailing four quarters, missed once and matched in the other, with the average surprise being 3.28%. The company has a Zacks Rank #3 at present.
Innoviz Technologies Ltd. INVZ is slated to release first-quarter 2026 results on May 14.The Zacks Consensus Estimate for INVZ’s loss and revenues is pegged at 6 cents per share and $13.81 million, respectively. INVZ surpassed earnings estimates in one of the trailing four quarters, missed once and matched twice, with the average surprise being 6.25%. The company has a Zacks Rank #2 (Buy) at present.
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This article originally published on Zacks Investment Research (zacks.com).