Mobileye — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for Q3 2026 was $492 million, a 2% decrease from $504 million in Q3 2025.
• GAAP Operating Loss was $82 million, an improvement of 25% year-over-year from a $109 million loss in Q3 2025.
• Adjusted Operating Income was $89 million, a 20% increase from $74 million in Q3 2025.
• GAAP Net Loss was $67 million, improving 30% from a $96 million loss in Q3 2025.
• Diluted EPS (GAAP) was $(0.08) compared to $(0.12) in Q3 2025.
• Adjusted Diluted EPS (Non-GAAP) was $0.11, up from $0.09 in Q3 2025.
• GAAP Gross Margin increased to 53% from 48% in Q3 2025.
• Adjusted Gross Margin decreased to 64% from 67% in Q3 2025.
• Net cash from operating activities for the nine months ended September 26, 2026, was $303 million.
• Cash and cash equivalents, marketable securities, and deposits totaled $1.5 billion as of September 26, 2026.
• Share repurchases totaled $33 million through the end of Q3 2026.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance was raised to a range of $1,995 million to $2,020 million (midpoint increased by $13 million), implying 5% to 7% year-over-year growth.
• Full-year 2026 Operating Loss (GAAP) guidance midpoint improved by 0.4% to a range of $(4,127) million to $(4,087) million.
• Full-year 2026 Adjusted Operating Income (Non-GAAP) guidance midpoint increased by 1% to a range of $380 million to $420 million.
• The updated revenue guidance reflects higher-than-expected SuperVision deliveries and the pass-through of higher memory costs.
• The R&D Law incentive grant is expected to contribute approximately $190 million to the Adjusted Operating Income outlook at the midpoint.
• Cash receipts associated with the 2026 R&D Law incentive grant are expected to begin in 2028.

Business Segments and Product Lines:

• EyeQ shipment volume increased 11% in the first nine months of 2026 compared to 2025, outperforming global automotive production which declined an estimated 1%.
• Shipments to the top 10 customers are expected to grow 7% in 2026, despite their aggregate vehicle production declining 5%.
• SuperVision deliveries exceeded expectations, though higher memory costs were passed through to customers at zero gross margin.
• Higher-value L2+ highway hands-free capability is expected to grow at an approximate 20% CAGR through the end of the decade.
• Mobileye's EyeQ SoC is present in the majority of vehicles produced in North America and Europe in 2026 within the L2+ segment.
• New design wins were secured with a Top 5 global automaker from Asia and a Top 10 global automaker from Japan for Cloud-Enhanced ADAS.
• Mobileye's nomination to supply Cloud-Enhanced ADAS for Stellantis vehicles in the US was expanded to include European platforms.
• Progress in robotaxi deployment includes public autonomous ridepooling in Hamburg, Germany; closed-user group testing in Orlando, Florida; and autonomous driving permits for Holo in Norway.
• Deutsche Bahn selected HOLON Urban (enabled by Mobileye's self-driving system) for public transit corridors in multiple German regions.
• Mobileye Drive accounts for more than 60% of vehicles authorized for Level 4 testing in Germany as of August 2026.
• Mobileye invested in the Series B funding round for Beep, Inc. to support their Autonomous Mobility Networks.
• Mobileye acquired Mentee Robotics in 2026 to pursue physical AI and humanoid robots; MenteeBot was recognized by Nvidia for embodied AI innovation.

Market and Competitive Landscape:

• Chinese OEMs are choosing Mobileye to support expansion into emerging markets, encouraging legacy OEMs to increase ADAS fitment rates.
• Vehicles with standard ADAS in emerging markets are driving increased ADAS fitment rates among legacy OEMs.
• The company faces competition from emerging chip manufacturers and OEMs, as noted in risk factors.

Risks and Challenges:

• Revenue decline was driven by a 5% decrease in average system price, primarily due to a higher mix of China OEM export volumes with lower software content and lower pricing, and lower Supervision volumes.
• Adjusted Gross Margin decreased due to lower EyeQ ASP from higher China OEM shipments and a different mix of EyeQ products sold with higher cost per unit.
• Higher-than-expected SuperVision volume and memory cost pass-through reduced corporate average gross margin by approximately 100 basis points relative to expectations.
• Risks include geopolitical conflict in Israel affecting operations and military service obligations, regulatory frameworks for autonomous driving, and potential goodwill impairment if stock price remains low.

Management Commentary and Tone:

• CEO Prof. Amnon Shashua stated that Mobileye delivered "another quarter of strong results from its ADAS products."
• Management highlighted that demand for the EyeQ line has been robust throughout 2026, enabling performance well ahead of initial expectations.
• The CEO emphasized a multi-year growth opportunity in the consumer-owned vehicle space driven by ADAS reaching more vehicles and delivering more value per vehicle.
• Management views recent design wins as creating a path to higher content per vehicle as programs enter production.
• The company aims to accelerate deployment and capture recurring revenue opportunities through broader participation in the value chain alongside its capital-light self-driving system supply business.

Other Key Points:

• Mobileye acquired Mentee Robotics in 2026.
• Goodwill impairment of $3,788 million was recorded in the nine months ended September 26, 2026.
• The R&D Law incentive grant recognized in Q3 2026 benefited GAAP and Non-GAAP Operating Income by $52 million and $51 million, respectively.
• On a year-to-date basis, the R&D Law incentive grant benefited GAAP and Non-GAAP Operating Income by $162 million and $144 million, respectively.
• The company is advancing into vertically-integrated commercial mobility as a service to capture recurring revenue from rider fares.
• Moovit's customer-facing app, fleet optimization, and rider engagement applications have been accelerated.
• The R&D Law incentive grant related to ordinary income from RSU settlements cannot be estimated precisely for the full year and is included in the outlook only for the first three quarters of 2026.