MBLY · Mobileye Global Inc.

Mobileye's Q1 2026 results demonstrated robust top-line growth with revenue of $558 million, a 27% increase from $438 million in Q1 2025, driven primarily by a 28% ramp in EyeQ SoC volumes amid higher demand and normalization of customer safety stock levels post-Q4 2025 drawdown. GAAP gross margin expanded 202 basis points to 49%, benefiting from similar intangible amortization on a larger revenue base, though partially offset by a higher EyeQ cost per unit due to product mix. However, GAAP operating loss widened dramatically to $(3,896) million from $(117) million, dominated by a $3,788 million non-cash goodwill impairment triggered by declining market capitalization and macroeconomic/geopolitical uncertainty; this asset traces back to Intel's 2017 acquisition and was pushed down post-2022 IPO. Excluding this and other non-cash items, adjusted operating income rose 61% to $95 million with margin expansion to 17% from 13%, reflecting operating leverage on higher revenue and lower expenses as a percentage of sales. CEO Amnon Shashua highlighted a stronger-than-expected start, favorable demand enabling a raised full-year outlook, and key wins like Mahindra for Surround ADAS and SuperVision, plus robotaxi progress with VW/MOIA. The $250 million share repurchase program targets dilution from stock-based compensation and the February Mentee Robotics acquisition, which consumed $591 million net cash despite $75 million operating cash generation. Updated 2026 guidance reflects 2% higher revenue midpoint ($1,975 million range $1,935-$2,015 million) and 8% higher adjusted operating income midpoint ($210 million range $185-$235 million), signaling confidence in execution across ADAS, AV, and new physical AI initiatives.