Mobileye (NASDAQ:MBLY) shares fell more than 3% after the autonomous driving technology company reported fourth quarter results that missed Wall Street expectations on earnings, even as revenue came in above forecasts.
The company reported adjusted earnings per share of $0.06 for the fourth quarter of 2025, well below the $0.24 analysts had expected.
Revenue for the period was $446 million, surpassing the consensus estimate of $431.85 million but marking a 9% decline from the same quarter a year earlier.
Mobileye attributed the revenue drop to an 11% decrease in EyeQ system-on-chip volumes, as tighter-than-normal inventory levels at Tier 1 customers weighed on sales.
Mobileye’s adjusted operating margin fell to 9% in the fourth quarter, down from 21% in the same period last year.
For fiscal year 2026, Mobileye guided revenue of $1.9 billion to $1.98 billion, above the analyst consensus of $1.87 billion. The outlook implies flat to 5% year-over-year growth, with roughly 19% growth expected in the first quarter of 2026.
However, the company’s adjusted operating income guidance of $170 million to $220 million, with a midpoint of $195 million, fell short of expectations, signaling ongoing profitability pressure and overshadowing the revenue beat.
For the full year, Mobileye reported revenue of $1.894 billion, up 15% from 2024, and said it generated $602 million in net cash from operating activities, up 51% year-over-year.
The company ended the year with $1.8 billion in cash and cash equivalents, excluding an expected $612 million cash outlay related to its planned acquisition of Mentee Robotics.
“We enter 2026 with strong momentum and a cash-generative business that enables us to fund continued investment in advanced product execution across our portfolio,” Mobileye Amnon Shashua said in a statement. “Our ambition is to be a comprehensive leader in Physical AI, encompassing both autonomous vehicles and humanoid robotics.”