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    MBLY
    Earnings call· Jun 2026(Q2 FY26)

    Mobileye Global Inc. MBLY

    Jul 23, 2026 Source

    Executive summary

    Mobileye Q2 FY26 — Strong Core Business & Robotaxi Vertical Integration

    Mobileye reported a strong Q2 FY26, with its core EyeQ business outperforming the market and profitability significantly boosted by a new, sustainable Israeli R&D credit. The company announced a strategic shift to a vertically integrated robotaxi offering, aiming for a 2027 launch, driven by market clarity and strong ROI. This quarter also marked CEO Amnon Shashua's decision to step down, transitioning to focus on long-term technology strategy and humanoid robotics, as the company enters a new operational phase.

    Highlights

    5

    • EyeQ volume increased 3% year-over-year, outperforming top 10 customers by more than 8 percentage points.

    • Adjusted operating profit was up 46% year-over-year to $155 million, driven by R&D credit recognition.

    • Adjusted operating margin expanded by 10 percentage points to 31% in Q2 FY26.

    • First half revenue grew 13% year-over-year, significantly outpacing core customers' production volume decline of 3%.

    • Operating cash flow generated $210 million in the first half of the year.

    Concerns

    4

    • ASP came in modestly below expectations due to a higher contribution from China OEM export volume.

    • SuperVision shipment volume is expected to decrease in the second half of the year compared to the first, due to customer inventory building.

    • Third quarter revenue is projected to decrease approximately 5% to 6% on a year-over-year basis.

    • Third quarter gross margin is expected to be slightly below Q2 levels due to mix of orders.

    Guidance & targets

    18
    CategoryTargetConfidence
    Full-year revenue
    $1.995 billion at midpoint
    high materiality
    High
    Full-year revenue growth
    4% to 7%
    high materiality
    High
    Full-year EyeQ units
    a bit above 39 million units
    medium materiality
    High
    Full-year SuperVision units
    slightly below 60,000 units
    medium materiality
    High
    Full-year adjusted operating income
    $395 million at the midpoint
    high materiality
    High
    Full-year R&D credit
    $180 million to $200 million
    high materiality
    High
    Full-year non-GAAP operating expenses
    approximately $910 million at midpoint
    medium materiality
    High
    Full-year effective tax rate
    8% to 10% range
    high materiality
    High
    Mid-term tax rate
    up to 15%
    high materiality
    High
    Q3 EyeQ units
    between 9.3 million to 9.5 million
    medium materiality
    High
    Q3 revenue growth
    decrease approximately 5% to 6%
    medium materiality
    High
    Q3 gross margin
    slightly below Q2 levels
    medium materiality
    High
    Q3 operating expenses (excluding R&D incentive)
    slightly up from Q2
    low materiality
    High
    Robotaxi launch
    in 2027 in at least one U.S. city
    high materiality
    High
    Humanoid robotics launch
    2028
    high materiality
    High
    Humanoid robot V4 readiness
    Q1 2027
    medium materiality
    High
    Humanoid production volume (initial)
    around 500 units
    medium materiality
    High
    Robotaxi fleet size (initial)
    100 to 200 vehicles
    medium materiality
    High

    Operational metrics

    16
    EyeQ volume
    10 millionup 3% year-over-year
    Q2 FY26

    Outperformed top 10 customers' volume.

    EyeQ volume (sequential)
    down almost 1 million unitsfrom Q1
    Q2 FY26

    Underlying demand was flat, as Q1 included about 1 million of safety stock increase at customers.

    SuperVision deliveries
    20,000 unitsabove expectations
    Q2 FY26

    Deliveries were above expectations, with intentional inventory building by customers.

    SuperVision deliveries
    40,000 unitsvs. 30,000 end market demand
    H1 FY26

    First half deliveries exceeded end market demand, indicating customer inventory build.

    R&D incentive recognition
    $93 million
    Q2 FY26

    Contra R&D expense recognized due to new Israeli R&D credit law, effective retroactively.

    Share buyback executed
    $24 million
    Q2 FY26

    Initial execution of the share buyback program.

    Hedged for H2
    85%
    H2 FY26

    To reduce volatility from foreign exchange headwinds.

    Robotaxi revenue per vehicle (estimated)
    $125,000
    per year

    Internal calculation for the vertically integrated robotaxi business.

    Robotaxi vehicle cost (estimated)
    below $100,000
    per vehicle

    Cost of a vehicle with Mobileye sensors and compute, reflecting a lean cost structure.

    Robotaxi operating expenses (estimated)
    few tens of thousands
    per year per car

    Estimated annual operating expenses per robotaxi.

    Cash reserves
    $1.2 billion to $1.3 billion
    current

    Available for funding CapEx for robotaxi expansion.

    Expected operating cash (future)
    $350 million
    per year

    Expected future operating cash generation, available for funding robotaxi expansion.

    Humanoid robot hardware version
    V3.2
    current

    Current version of the robot, assembled a few weeks ago.

    Humanoid robot hardware version
    V3.5
    in about a month

    Next version of the robot with additional capabilities.

    China OEM export volume
    increased significantly
    past couple of quarters

    Benefiting from leading Chinese OEMs increasing their export volumes with Mobileye systems.

    ADAS penetration rates
    increasing
    current

    Legacy automakers are increasing ADAS penetration in emerging markets due to competition from China OEM exports.

    Industry KPIs

    9
    MetricValueDetails
    Revenue$508 millionUSD
    Inventory—
    Gross margin—
    Market share—
    Sg a OPEX ratio$910 millionUSD
    Operating margin31%%
    Operating income EBIT$155 millionUSD
    Cash investments balance$1.2 billion to $1.3 billionUSD
    Share buyback capital return$24 millionUSD

    Product announcements

    4
    ProductTypeDetails
    Cloud-Enhanced ADASlaunch
    Vertically Integrated Robotaxi Offeringlaunch
    Humanoid Roboticsroadmap
    SuperVisionupdate

    Deals & partnerships

    2
    StellantisAward for high-volume Cloud-Enhanced ADAS program

    Mobileye won the high-volume 2027 program with Stellantis for Cloud-Enhanced ADAS, supporting highway hands-free driving. This is an upgrade for an existing project, introducing REM through Cloud-Enhanced ADAS, and is expected to be adopted across the Stellantis fleet.

    MOIA (Volkswagen Group company)Robotaxi public rider testing

    MOIA began public rider testing with safety drivers in Hamburg, Germany, using vehicles equipped with Mobileye's self-driving system. This is a significant milestone for the robotaxi program, with additional milestones expected throughout 2026 and 2027.

    Risks & headwinds

    10
    ASP pressure from China OEM export mixQ2 FY26

    modestly below expectations

    SuperVision shipment reduction due to customer inventory buildH2 FY26

    reduction in shipment volume in the second half of the year

    Mitigation: Maintaining full-year outlook of slightly below 60,000 units, implying consumption of H1 inventory.

    Q3 revenue decreaseQ3 FY26

    decrease approximately 5% to 6% on a year-over-year basis

    Q3 gross margin declineQ3 FY26

    slightly below Q2 levels

    Increased expenses for robotaxi expansionFY26

    some increase in expenses

    Mitigation: Partially offset by higher revenue and R&D credit contribution.

    Foreign exchange headwindsFY26

    very modest increase to operating expenses

    Mitigation: Mostly offset with hedging program (85% hedged for H2) and operational efficiencies.

    Volatility in R&D incentive recognitionquarterly

    potential for some volatility

    Mitigation: Management has enough clarity to incorporate further benefits in the back half of the year.

    Delayed cash inflow from R&D incentivegradually from the beginning of 2028 (for 2026 benefit)

    timing of cash inflows is quite delayed compared to the accounting recognition

    Increased tax rate due to OECD Pillar Twopotentially starting in 2027

    increase up to 15%

    Mitigation: Believed to be already incorporated into Street estimations.

    Memory price increases impacting SuperVision gross marginthis year

    some price increases

    Mitigation: Fully passed through to customers.

    What to watch in Q3 FY26

    5

    SuperVision inventory consumption

    H2 FY26
    Current40,000 units delivered in H1 FY26 (vs. 30,000 end market demand)
    TargetConsumption of excess inventory, leading to reduced H2 shipments

    Why it matters

    Verifies management's expectation that H1 inventory build was temporary and will normalize📎, impacting H2 shipment volumes.

    We do believe there is some intentional inventory building to protect against component shortages. This will be consumed during the second half.

    Q&A highlights

    8

    Why the shift to vertically integrated robotaxi after previously avoiding fleet ownership, and how partners are reacting.

    The shift is due to increased clarity on the business case, availability of Level 4-ready vehicles, mature compute/sensor stacks, and strong ROI ($125k revenue/car, <$100k vehicle cost). It offers go-to-market flexibility. Partners' reactions are generally positive as it shows commitment to robotaxi development.

    “what has changed in the last few years is more clarity about the business and some barriers that made vertical integration less attractive 5 years ago have changed.”

    asked by Lannie Trieu · answered by Amnon Shashua

    2 min read6 chapters

    Detailed Narrative

    01

    R&D Credit Boosts Profitability

    Mobileye recognized a $93 million contra R&D expense in Q2 FY26 due to a new Israeli R&D incentive law, effective retroactively to the beginning of 2026. This benefit, which is expected to be sustainable and similar in magnitude for the full year ($180M-$200M), significantly expanded adjusted operating margin by 10 percentage points to 31% in Q2 and contributed to a 46% year-over-year increase in adjusted operating profit. The cash impact of this benefit is delayed, expected gradually from 2028.

    02

    Strategic Shift to Vertically Integrated Robotaxi

    Mobileye announced a strategic shift to establish a fully vertically integrated robotaxi offering, leveraging its self-driving system technology. This initiative, targeting a 2027 launch in at least one U.S. city, is driven by increased clarity on market demand, robust revenue per vehicle estimates ($125,000 conservatively), and a lean cost structure, enabling a strong ROI and providing go-to-market flexibility. The company plans to fund the initial 10,000-20,000 vehicles using its cash reserves and operating cash flow.

    03

    CEO Transition and Future Focus

    CEO Amnon Shashua announced his decision to step down, initiating a search for a successor to lead Mobileye's operational growth in its next phase. Shashua will transition to focus on technology strategy, innovation, and long-term opportunities, particularly in humanoid robotics, where he aims for a B2C launch in 2028 with an initial production of 500 units. He believes the autonomous vehicle technology issues are largely solved, making this the right time for an operational leader.

    04

    OEM Dynamics and Design Wins

    Mobileye continues to secure high-volume design wins, exemplified by the Stellantis Cloud-Enhanced ADAS program for 2027, supporting highway hands-free driving. This reflects OEMs' preference for Mobileye where scale and reliability are paramount, while some experiment with alternative architectures on lower-risk, lower-volume programs. The Cloud-Enhanced ADAS product offers an attractive economic bridge with gross profit per unit more than double that of a base ADAS program.

    05

    Strong Core Business and Emerging Market Growth

    The core EyeQ business continues to perform robustly, with Q2 volume up 3% year-over-year, outperforming top 10 customers by over 8 percentage points. This growth is significantly supported by increasing China OEM exports into emerging markets, which also drives higher ADAS penetration among legacy automakers in those regions. Mobileye benefits from Chinese OEMs' successful export strategies, maintaining its competitive position in foreign markets.

    06

    SuperVision Inventory Management

    SuperVision deliveries in H1 FY26 exceeded end-market demand, with approximately 40,000 units shipped against 30,000 vehicles. This intentional inventory building by customers, aimed at protecting against component shortages, is expected to be consumed in the second half, leading to a reduction in H2 shipment volume and maintaining the full-year outlook of slightly below 60,000 units. Memory price increases for SuperVision components have been fully passed through to customers.

    AI-generated summary of the company’s earnings call. Not investment advice.