In a recent update, Mizuho has reduced its price target on Mobileye N.V to $11, down from the previous $12, while retaining a Neutral rating on the stock. Mobileye, which specializes in autonomous driving technologies, currently trades at $10.61, slightly above its 52-week low of $10.04, having declined nearly 33% over the last six months.
The company's financial report for the December quarter revealed revenue of $446 million, closely aligning with consensus estimates of $434 million. Mobileye provided guidance for fiscal 2026 revenue projecting $1.94 billion, indicating a growth rate of approximately 3% year-over-year, which is slightly below the market consensus expectation of 6% growth.
Although Mobileye has recorded a negative earnings per share (EPS) of -$0.41 over the trailing twelve months, analysts tracked by InvestingPro forecast that the company will return to profitability this fiscal year, with an estimated EPS of $0.35.
The firm has also revised upward its 2026 forecast for EyeQ units to 37 million, increased from an earlier estimate of 35.3 million. The first quarter of 2026 is expected to see unit sales reach 10 million, spurred by inventory replenishment, followed by quarterly sales stabilizing around 9 million units for the remainder of the year.
Mobileye anticipates the top ten customers' light vehicle production to decline by approximately 2% year-over-year. However, the company projects roughly 6% revenue growth year-over-year, attributable to new customer acquisitions. Despite these expectations, management expresses caution regarding the market conditions in China for 2026.
Financially, Mobileye remains robust with a current ratio of 6.46 and a balance sheet boasting more cash than debt, positioning the company well to navigate short-term hurdles.
On the product front, Mobileye's Robotaxi program is progressing satisfactorily. Collaborations with Volkswagen are expected to launch by the end of the current year, with plans to expand Robotaxi operations to six cities across the United States and Europe in 2027. Additionally, Mobileye's acquisition of Mentee is anticipated to close by the end of the March quarter.
Despite a recent downturn in share price, InvestingPro analysis suggests that Mobileye's stock remains undervalued relative to its fair value. Detailed expert insights and strategic evaluation are presented within the Pro Research Report, focusing on key industry developments impacting this autonomous driving technology leader.
In supplementary news, Mobileye Global Inc. announced its fourth-quarter 2025 earnings, which fell short of market expectations. The company posted an EPS of $0.06, well below the forecasted $0.24, alongside revenue totaling $446 million, versus an anticipated $726.82 million.
Following the earnings release, Oppenheimer adjusted its price target for Mobileye to $27 from $28, maintaining an Outperform rating. This revision reflects the company's fiscal 2026 guidance signaling modest unit growth of 3.6% and stable pricing amid product mix headwinds. Oppenheimer also highlighted that inventory levels for Mobileye's products remain lean, indicative of industry supply dynamics.
These developments underscore the current challenges Mobileye faces within the evolving autonomous driving sector and broader market conditions.