Key Highlights

  • Q3 2026 Revenue of $492 million declined 2% year-over-year, while gross Margin improved to 53% from 48%
  • Operating loss and adjusted Operating Income improved 25% and 20% year-over-year, respectively
  • Full-year 2026 revenue guidance narrowed to $1,995–$2,020 million, implying 5–7% year-over-year growth
  • EyeQ shipments to top 10 customers expected to grow 7% in 2026 despite a 5% expected decline in their vehicle production

Revenue Holds as ADAS Demand Outpaces Auto Production

Mobileye Global Inc. (NASDAQ:MBLY) reported third quarter 2026 revenue of $492 million, a 2% decline from $504 million in the same period of 2025. Despite the revenue dip, the company outperformed the broader automotive market, with EyeQ shipments to its top 10 customers expected to grow 7% in 2026, even as their aggregate vehicle production is projected to decline 5%. Mobileye's EyeQ system-on-chip is present in the majority of North American and European vehicles produced in the higher-value L2+ highway hands-free segment.

Gross profit improved to $261 million, with gross margin expanding to 53% from 48% in Q3 2025, a gain of 483 basis points. This improvement reflects the company's ability to grow margins even as some revenue headwinds persist. The nine-month EyeQ shipment Volume through September 2026 was up 11% compared to the same period of 2025, well ahead of flat-to-declining global auto production.

Operating Performance Improves Despite GAAP Loss

Mobileye's operating loss under GAAP improved 25% year-over-year during Q3 2026, while adjusted operating income improved 20%. Diluted EPS on a GAAP basis was $(0.08), and adjusted diluted EPS was $0.11 for the quarter. The company generated net cash from Operating Activities of $303 million for the nine months ended September 26, 2026.

The Balance Sheet remained in a healthy position with $1.5 billion in cash and cash equivalents, marketable securities, and deposits as of September 2026. Management noted continued discipline in managing operating expenses, which has contributed to the improving profitability trajectory.

New Design Wins Expand Content Per Vehicle

Mobileye secured new design wins with a Top 5 global automaker from Asia and a Top 10 global automaker from Japan for Cloud-Enhanced ADAS, which combines front-camera EyeQ with Road Experience Management (REM) software. These wins add to Mobileye's Surround ADAS and SuperVision program portfolio, providing a path to higher average selling prices as each program enters production.

The company also expanded its Cloud-Enhanced ADAS nomination for Stellantis from U.S. platforms to include European vehicles as well, signaling broader adoption of higher-value ADAS configurations. According to Mobility Global data, worldwide L2+ highway hands-free volume is expected to grow at approximately a 20% compound annual rate through the end of the decade, a market where Mobileye holds a leading position.

Robotaxi Progress and Full-Year Outlook

Commercial robotaxi deployment progress continued during the quarter across multiple geographies. Autonomous ridepooling for the public commenced in Hamburg, Germany with safety drivers, and closed-user group testing began in the greater Orlando, Florida area. Holo received an autonomous driving permit in Norway, and Deutsche Bahn selected the HOLON Urban platform, enabled by Mobileye's self-driving system, to serve public transit corridors in Germany. As of August, vehicles incorporating Mobileye Drive accounted for more than 60% of vehicles authorized for Level 4 testing in Germany.

Mobileye updated its full-year 2026 revenue guidance, narrowing the range to $1,995 million to $2,020 million, up $13 million at the midpoint from the prior outlook. This implies 5–7% revenue growth year-over-year. Full-year 2026 operating loss and adjusted operating income guidance both improved at their midpoints, with adjusted operating income guidance midpoint moving favorably by approximately 1%. CEO Amnon Shashua noted that the company's multi-year growth opportunity is underpinned by both ADAS reaching more vehicles and Mobileye delivering more value in each vehicle.

Mobileye's third quarter showed a company navigating a modestly softer revenue environment while delivering clear operational improvements in margins and profitability. The pipeline of new design wins for higher-content ADAS programs, combined with advancing robotaxi deployments, positions Mobileye at the intersection of near-term ADAS growth and longer-term autonomous mobility.

Why did Mobileye's revenue decline in Q3 2026?

Revenue declined 2% to $492 million primarily due to general softness in the automotive market. However, Mobileye's EyeQ shipments outperformed, with volumes to top customers growing ahead of their vehicle production declines.

What is Mobileye's updated 2026 revenue guidance?

Mobileye narrowed its 2026 full-year revenue guidance to $1,995–$2,020 million, raising the midpoint by $13 million. This implies year-over-year revenue growth of 5–7%.

How did Mobileye's gross margin perform in Q3 2026?

Gross margin improved 483 basis points to 53% in Q3 2026 from 48% in Q3 2025, driven by a better revenue mix and operational efficiencies.

What progress did Mobileye make on robotaxi deployments?

Mobileye made progress across multiple geographies, including launching autonomous ridepooling in Hamburg, Germany, beginning closed-user group testing in Orlando, Florida, and securing a Level 4 testing permit in Norway. Deutsche Bahn also selected Mobileye-powered vehicles for public transit use in Germany.