Mobileye Global raised its revenue outlook for 2026 after a stronger-than-expected start to the year, saying on Thursday that renewed orders from carmakers helped drive quarterly results above Wall Street forecasts. The self-driving technology firm benefited as automakers moved to replenish inventories that were swollen last year, supporting higher demand for its advanced driver-assistance systems and related chips and software.
Shares of the company jumped nearly 14% in early trading following the report, which showed Mobileye topped analysts' expectations for the first quarter and signaled positive demand trends into the current quarter.
Quarterly performance
For the quarter ended in March, Mobileye reported revenue of $558 million, compared with analysts' average estimate of $515.6 million, based on data compiled by LSEG. Adjusted earnings came in at 12 cents per share, above the 9 cents per share analysts had expected.
Updated guidance
The company raised its full-year 2026 revenue forecast to a range of $1.94 billion to $2.02 billion, up from its previous projection of $1.90 billion to $1.98 billion. Analysts on average had been expecting revenue of $1.95 billion.
Management commentary
Executives described the quarter as a stronger-than-expected start to 2026. On a post-earnings call, company leaders said demand in China was healthy and they drew attention to a recent ADAS partnership with Indian automaker Mahindra & Mahindra.
"The geopolitical and economic environment remains volatile, but based on our visibility for the second quarter, we believe there is sufficient conservatism baked into the second half" of the year, Mobileye CEO Amnon Shashua said.
Broader industry context
Mobileye's results come as automakers shift from dealing with pandemic-era inventory surpluses to restocking vehicles, a trend that has increased orders for suppliers of vehicle electronics and software. Chipmaker Texas Instruments also projected strong quarterly results on Wednesday, citing a recovery in the auto industry, and said it expects continued growth in the automotive market even as tariff and cost pressures persist.
Outlook and market reaction
Mobileye said it expects upbeat demand in the current quarter and has adjusted its full-year guidance upward to reflect the stronger start. The combination of better-than-expected revenue and earnings, healthy regional demand, and new automaker partnerships contributed to the sharp market reaction in early trading.
Summary
Mobileye lifted its 2026 revenue forecast after reporting first-quarter revenue of $558 million and adjusted earnings of 12 cents per share, both above analyst expectations. Management cited healthy demand in China and a new ADAS collaboration with Mahindra & Mahindra, and said visibility for the second quarter supports a conservative second-half outlook despite ongoing geopolitical and economic volatility.