Mobileye Q3 revenue beats estimates on higher EyeQ volumes

Overview

• US autonomous driving tech firm's Q3 revenue fell 2% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Revenue decline driven by lower average system price from higher China OEM export mix

Outlook

• Mobileye raises 2026 revenue outlook to $1.995 bln-$2.02 bln from $1.97 bln-$2.02 bln

• Company expects 2026 adjusted operating income of $380 mln-$420 mln, up from $365 mln-$425 mln

• R&D Law incentive benefit expected to continue into future years, subject to changes in the law

Result Drivers

• CHINA OEM MIX - Co said revenue decline was mainly due to a higher mix of China OEM export volumes, which carry less software content and lower pricing

• R&D LAW INCENTIVE - Co said operating income benefited from an incentive grant under Israel's R&D Law, recognized as $52 mln in Q3

• HIGHER EYEQ VOLUMES - Co said robust demand for EyeQ line enabled shipment volume to rise 11% in first nine months of 2026, outperforming global auto production

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the integrated hardware & software peer group is "buy."

• Wall Street's median 12-month price target for Mobileye Global Inc is $10.10, about 43.1% above its October 28 closing price of $7.06

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 31 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)