Mobileye surpassed market expectations; The stock jumps sharply in pre-trade

According to generally accepted accounting rules (GAAP), a net loss of $3.8 billion was recorded in the quarter, due to a decrease in the value of goodwill that is not in cash, and is related to the goodwill asset on the balance sheet following the acquisition by Intel in 2017. On a Non-GAAP basis, excluding various accounting items, primarily the decrease in value – Mobileye recorded a net profit of 96 million dollars, an increase of 52.4% compared to the corresponding quarter. Net profit per share amounted to 12 cents, while the market expected 9 cents.

Mobileye is updating its full-year forecast upward, anticipating revenues of $1.935-2.015 billion, an operating loss (GAAP) of $4.281-4.331 billion and an adjusted operating profit of $185-235 million. The previous forecast spoke of revenues of $1.9-1.98 billion, with an adjusted operating profit of $170-220 million.

Shashua stated that “the results of the first quarter reflect a stronger than expected start to 2026, and the ongoing positive demand trends allow us to moderately raise our forecast for 2026. In addition, we won the Mahindra project, which is added as the third customer for the Surround ADAS solution and the second customer for our next-generation SuperVision product. At the same time, we achieved significant milestones related to the technological portfolio of products Our Robotaxi and EyeQ6H-based Supervision L2 and Chauffer L3 projects with the Volkswagen Group. Continued progress in these programs is a key factor, both for converting our advanced product backlog into future revenue growth and for winning additional customers.”

Mobileye’s stock has weakened by 24% since the beginning of the year, but has climbed by about 20% since the low it reached at the end of March. The company’s value on Nasdaq is about $6.6 billion as of the close yesterday (Wed), and the stock jumps in pre-trade after the publication of the reports. Simultaneously with the publication of the reports, Mobileye reported a plan for its own purchase of shares (type A) in the amount of up to $250 million. The company states that the plan reflects the confidence that both the management and the board of directors have in the company’s products, and in its position as a leader in the field of assistance systems Advanced for the driver, autonomous driving solutions and complex Physical AI systems.

Shashua stated that “our main capital allocation priority remains investment in research and development and capital expenditures, to support innovation and realize the expanding roadmap of our products. At the same time, in light of our strong balance sheet and the continued generation of cash flow, we believe that allocating a portion of our cash flow to our own purchase of shares at current pricing levels is a wise step, emphasizing our confidence in the durability of our business and its future growth potential.”

Another use of the money in the fund was the purchase of Mentee, which Mobileye announced in January and which was completed in February. At the end of the first quarter, after the completion of the purchase and after the company generated 75 million dollars in the quarter from current operations, Mobilay had more than 1.2 billion dollars in its coffers.