Q3 FY2026
Filed Oct 29, 2026Mobileye Releases Third Quarter 2026 Results, Updates Guidance, and Provides Business Overview
Third-quarter revenue declined 2% year over year, but GAAP operating loss narrowed 25%, adjusted operating income increased 20%, and full-year revenue guidance was raised and narrowed. Margin performance benefited materially from the R&D Law incentive, while adjusted gross margin declined and the nine-month period included a $3,788 million goodwill impairment.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 RevenueGAAP | $492M | – | (2)% |
| Q3 2026 Gross ProfitGAAP | $261M | – | 7% |
| Q3 2026 Gross MarginGAAP | 53% | – | +483 bps |
| Q3 2026 Operating Income (Loss)GAAP | −$82M | – | 25% |
| Q3 2026 Operating MarginGAAP | (17)% | – | +496 bps |
| Q3 2026 Net Income (Loss)GAAP | −$67M | – | 30% |
| Q3 2026 EPS - BasicGAAP | $(0.08) | – | 31% |
| Q3 2026 EPS - DilutedGAAP | $(0.08) | – | 31% |
| Q3 2026 Adjusted Gross Profitnon-GAAP | $314M | – | (7)% |
| Q3 2026 Adjusted Gross Marginnon-GAAP | 64% | – | (304) bps |
| Q3 2026 Adjusted Operating Incomenon-GAAP | $89M | – | 20% |
| Q3 2026 Adjusted Operating Marginnon-GAAP | 18% | – | +341 bps |
| Q3 2026 Adjusted Net Incomenon-GAAP | $95M | – | 25% |
| Q3 2026 Adjusted EPS - Basicnon-GAAP | $0.12 | – | 23% |
| Q3 2026 Adjusted EPS - Dilutednon-GAAP | $0.11 | – | 23% |
| Nine months ended September 26, 2026 RevenueGAAP | $1.56B | – | – |
| Nine months ended September 26, 2026 Gross ProfitGAAP | $771M | – | – |
| Nine months ended September 26, 2026 Gross MarginGAAP | 49% | – | – |
| Nine months ended September 26, 2026 Operating Income (Loss)GAAP | −$4.01B | – | – |
| Nine months ended September 26, 2026 Operating MarginGAAP | (257)% | – | – |
| Nine months ended September 26, 2026 Net Income (Loss)GAAP | −$3.91B | – | – |
| Nine months ended September 26, 2026 EPS - Basic and DilutedGAAP | $(4.77) | – | – |
| Nine months ended September 26, 2026 Adjusted Gross Profitnon-GAAP | $1.02B | – | – |
| Nine months ended September 26, 2026 Adjusted Gross Marginnon-GAAP | 65% | – | – |
| Nine months ended September 26, 2026 Adjusted Operating Incomenon-GAAP | $339M | – | – |
| Nine months ended September 26, 2026 Adjusted Operating Marginnon-GAAP | 22% | – | – |
| Nine months ended September 26, 2026 Adjusted Net Incomenon-GAAP | $346M | – | – |
| Nine months ended September 26, 2026 Operating Cash FlowGAAP | $303M | – | – |
| Nine months ended September 26, 2026 Purchases of Property and EquipmentGAAP | −$72M | – | – |
| September 26, 2026 Cash and Cash EquivalentsGAAP | $1.35B | – | – |
| September 26, 2026 Marketable Securities and DepositsGAAP | $153M | – | – |
| September 26, 2026 Total AssetsGAAP | $8.88B | – | – |
| September 26, 2026 Total LiabilitiesGAAP | $653M | – | – |
| September 26, 2026 Total EquityGAAP | $8.23B | – | – |
| Q3 2026 EyeQ and SuperVision revenueother | $468M | – | – |
| Q3 2026 Number of systems shippedother | 9.5M | – | – |
| Q3 2026 Average System Priceother | $49.1 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| EyeQ and SuperVisionHigher EyeQ volumes partially offset a 5% decrease in average system price mainly attributable to a higher mix of China OEM export volumes, which carry less software content and therefore lower pricing, and lower SuperVision volumes. Higher-than-expected SuperVision deliveries and the pass-through of higher memory costs added approximately $7 million to third-quarter revenue at zero gross margin. | $468M | – | – |
Full Year 2026 outlook
- Revenue$1,995 million to $2,020 million
- NoteOperating Loss: $(4,127) million to $(4,087) million
- NoteAmortization of acquired intangible assets: $346 million
- NoteShare-based compensation expense: $385 million
- NoteR&D Law incentive grant related to ordinary income arising from sales of shares received from the settlement of RSUs: $(18) million
- NoteAcquisition related expenses: $6 million
- NoteGoodwill impairment: $3,788 million
- NoteAdjusted Operating Income: $380 million to $420 million
- NoteAdjusted Operating Income outlook continues to include approximately $190 million from the R&D Law incentive at the midpoint.
Capital returns
- Share repurchases totaled $33 million through the end of Q3 2026, and occurred during the period after the program was announced on April 23, 2026.
- Repurchase of common stock was $(33) million for the nine months ended September 26, 2026, compared with $(100) million for the nine months ended September 27, 2025.
What drove it
- EyeQ shipment volume was up 11% in the first nine months of 2026 compared to 2025, while global automotive production declined an estimated 1%.
- Mobileye expects shipments to its top 10 customers to grow 7% in 2026, including changes in safety stock inventory, while their aggregate vehicle production is expected to decline 5%.
- The R&D Law incentive grant benefited Q3 2026 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.
- New Cloud-Enhanced ADAS design wins with a Top 5 global automaker from Asia and a Top 10 global automaker from Japan, together with expanded Stellantis platforms, are described as creating a path to higher average selling prices as programs enter production.
- Mobileye reported progress toward commercial robotaxi deployment through public autonomous ridepooling with safety drivers in Hamburg, closed-user testing in greater Orlando, a permit supporting Holo deployment in Norway, and Deutsche Bahn's selection of HOLON Urban.
Concerns
- Revenue declined 2% year over year as lower average system price and lower SuperVision volumes outweighed higher EyeQ volumes.
- Average system price decreased 5% year over year, mainly due to higher China OEM export volumes with less software content and lower pricing.
- Adjusted gross margin declined to 64% from 67%, reflecting lower EyeQ ASP and higher EyeQ-related cost per unit from product mix.
- Higher-than-expected SuperVision volume and higher memory-cost pass-through together reduced corporate average gross margin by approximately 100 basis points relative to expectations.
- The nine-month GAAP operating loss of $(4,008) million and net loss of $(3,906) million included a $3,788 million goodwill impairment.
- Cash receipts associated with the R&D Law benefit recognized in 2026 are expected to begin in 2028, approximately two years after accounting recognition.
- The company states that driver-out performance remains critical to scaling robotaxi deployments.
What to watch
- Full-year revenue delivery within the updated $1,995 million to $2,020 million outlook.
- Full-year adjusted operating income delivery within the updated $380 million to $420 million outlook, including approximately $190 million from the R&D Law incentive at the midpoint.
- EyeQ pricing and mix, particularly the impact of China OEM export volumes carrying lower ASP and less software content.
- SuperVision delivery volume and its lower gross margin relative to the corporate average.
- Timing and variability of R&D Law incentive recognition, which depends on recognition thresholds, qualifying R&D spending in Israel and exchange rates.
- Production timing for Surround ADAS, Cloud-Enhanced ADAS and SuperVision programs, and progress toward driver-out robotaxi performance.
Balance sheet and cash flow
- Cash and cash equivalents, marketable securities and deposits were $1.5 billion as of September 26, 2026.
- Cash and cash equivalents were $1,346 million as of September 26, 2026, compared with $1,836 million as of December 27, 2025.
- Marketable securities and deposits were $153 million as of September 26, 2026, compared with $55 million as of December 27, 2025.
- Net cash provided by operating activities was $303 million for the nine months ended September 26, 2026, compared with $489 million for the nine months ended September 27, 2025.
- Cash paid for acquisition of Mentee Robotics, net of cash acquired, was $(591) million for the nine months ended September 26, 2026.
- Net cash used in investing activities was $(765) million for the nine months ended September 26, 2026, compared with $(64) million for the nine months ended September 27, 2025.
- Balance of cash, cash equivalents and restricted cash at the end of the period was $1,374 million, compared with $1,769 million for the nine months ended September 27, 2025.
Analysis
Mobileye reported Q3 2026 revenue of $492 million, down 2% from $504 million in Q3 2025. The company attributed the decline primarily to a 5% decrease in average system price, driven mainly by a higher mix of China OEM export volumes with less software content and lower pricing, as well as lower SuperVision volumes. Higher EyeQ volumes partly offset those pressures. EyeQ and SuperVision revenue was $468 million, with 9.5 million systems shipped and an average system price of $49.1.
Profitability improved on both GAAP and adjusted operating measures, but the quality of that improvement reflects the R&D Law incentive. GAAP operating loss narrowed to $(82) million from $(109) million, while adjusted operating income rose to $89 million from $74 million. The R&D Law incentive benefited Q3 GAAP and non-GAAP operating income by $52 million and $51 million, respectively. GAAP gross margin rose to 53% from 48%, primarily because amortization of intangible assets was a lower percentage of revenue. In contrast, adjusted gross margin fell to 64% from 67%, reflecting lower EyeQ ASP and higher EyeQ-related cost per unit from product mix.
The nine-month financial statements show the impact of the $3,788 million goodwill impairment. For the nine months ended September 26, 2026, GAAP operating loss was $(4,008) million and GAAP net loss was $(3,906) million, versus $(300) million and $(265) million, respectively, in the prior-year period. Adjusted operating income increased to $339 million from $239 million and adjusted net income increased to $346 million from $241 million. The company said the R&D Law incentive benefited year-to-date GAAP and non-GAAP operating income by $162 million and $144 million, respectively.
Cash generation remained positive but declined year over year. Net cash provided by operating activities was $303 million in the nine-month period, compared with $489 million a year earlier, while purchases of property and equipment were $(72) million. Cash paid for the acquisition of Mentee Robotics was $(591) million, and net cash used in investing activities was $(765) million. Mobileye reported $1.5 billion of cash and cash equivalents, marketable securities and deposits, and repurchased $33 million of common stock through the end of Q3 2026.
The company raised and narrowed full-year revenue guidance to $1,995 million to $2,020 million from $1,970 million to $2,020 million, citing higher-than-expected SuperVision deliveries and higher memory-cost pass-through in Q3. It guided to adjusted operating income of $380 million to $420 million, compared with prior guidance of $365 million to $425 million. Management said the modest conversion of incremental revenue reflects SuperVision's lower gross margin relative to the corporate average and zero-margin memory cost pass-through. The guide continues to include approximately $190 million from the R&D Law incentive at the midpoint.
Management, verbatim
Mobileye delivered another quarter of strong results from its ADAS products. In the first nine months of 2026, our EyeQ shipment volume was up 11% compared to 2025. This was well ahead of global automotive production, which declined an estimated 1%.
Prof. Amnon Shashua, Mobileye President and CEO
Our multi-year growth opportunity in the consumer-owned vehicle space has two reinforcing drivers: ADAS reaching more vehicles and Mobileye delivering more value in each vehicle.
Prof. Amnon Shashua, Mobileye President and CEO
In robotaxi, permits, public deployments and partner vehicle selections mark progress toward commercialization, with driver-out performance remaining a critical milestone.
Prof. Amnon Shashua, Mobileye President and CEO
Not in the filing
stated, not guessed- A separate previous-period outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are presented.
- Segment revenue disclosures by separately reported operating segment were not provided.
- Free cash flow was not reported.
- Debt was not reported.
- Dividends were not reported.
- A tax rate was not reported.
- Q3 operating cash flow was not reported.
- Q3 free cash flow was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.