Mobileye Lifts 2026 Revenue Outlook After SuperVision Beat

The Tip Desk · October 31, 2026 · 4 min read

Third-quarter revenue was $492 million, down 2% from a year earlier, as the company raised its full-year outlook midpoint by $13 million.

Mobileye Global Inc. (MBLY) reported third-quarter revenue of $492 million, a 2% decline from $504 million a year earlier, after a 27% year-over-year increase in the first quarter and a relatively flat second quarter.

The autonomous-driving technology company said the drop was primarily due to a 5% decrease in average system price, mainly from a higher mix of China OEM export volumes that carry less software content and therefore lower pricing, and lower Supervision volumes. Higher EyeQ volumes only partially offset those effects. SuperVision deliveries exceeded expectations, and a pass-through of higher memory costs added about $7 million to third-quarter revenue at zero gross margin.

GAAP operating loss narrowed 25% to $82 million from $109 million a year earlier. Adjusted operating income rose 20% to $89 million from $74 million. Diluted GAAP earnings were a loss of $0.08 a share; adjusted diluted earnings were $0.11 a share.

The company said the increase in operating margin versus the year-ago period was primarily due to an incentive grant under the Israeli Law for the Encouragement and Incentivization of Research and Development 2026, enacted in the second quarter and applied from the beginning of 2026. In the third quarter, GAAP and non-GAAP operating income benefited from the grant by $52 million and $51 million, respectively. Cash receipts tied to the 2026 recognition are expected to begin in 2028.

GAAP gross margin expanded 483 basis points to 53% from 48% a year earlier, which the company attributed to a decrease in amortization of intangible assets as a percentage of revenue, partially offset by a modest reduction in EyeQ ASP and higher EyeQ-related cost per unit. Adjusted gross margin contracted 304 basis points to 64% from 67%, which the company said was primarily due to lower EyeQ ASP from the China mix and higher EyeQ-related cost per unit. Higher-than-expected SuperVision volume and the memory-cost pass-through together reduced corporate average gross margin by about 100 basis points relative to expectations.

EyeQ and SuperVision systems shipped 9.5 million units in the third quarter, down from 10.0 million in the second quarter. Average system price recovered to $49.1 from $48.5.

Mobileye raised the midpoint of its full-year 2026 revenue outlook by $13 million, narrowing the range to $1,995 million to $2,020 million, implying 5% to 7% year-over-year growth, from the prior $1,970 million to $2,020 million range. The company said the increase primarily reflects higher-than-expected SuperVision deliveries and the memory-cost pass-through. Full-year adjusted operating income guidance now stands at $380 million to $420 million, and GAAP operating loss at a $4,127 million to $4,087 million loss, with the outlook still including about $190 million from the R&D Law incentive at the midpoint. The company 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 pass-through.

Demand for the EyeQ line has been robust throughout 2026, the company said, and it expects shipments to its top 10 customers to grow 7% in 2026, including changes in safety-stock inventory, even as their aggregate vehicle production is expected to decline 5%. Chinese OEMs are choosing Mobileye to support expansion into emerging markets.

The company secured new Cloud-Enhanced ADAS design wins with a Top 5 global automaker from Asia and a Top 10 global automaker from Japan. A third-quarter nomination to supply Cloud-Enhanced ADAS for select future Stellantis vehicles in the United States beginning in 2027 was expanded to include European platforms.

Robotaxi progress continued. Customers began autonomous ridepooling for the public in Hamburg with safety drivers, closed-user group testing began in greater Orlando, Holo received a permit to publicly deploy in Norway, and Deutsche Bahn chose HOLON Urban for public transit corridors in multiple German regions. Mobileye said vehicles incorporating Mobileye Drive account for more than 60% of vehicles authorized for Level 4 testing in Germany as of August.

Net cash from operating activities was $303 million in the nine months ended September 26, 2026. Cash and cash equivalents, marketable securities and deposits totaled $1.5 billion. Share repurchases were $33 million through the end of the third quarter under the program announced April 23, 2026.