Mobileye shares slide after forecast signals growth slowdown
The company projects 5% revenue growth in 2026 despite recent deal momentum.
Mobileye shares fell in pre-market trading on Wall Street after Amnon Shashua’s company issued a weak growth forecast for 2026. Mobileye expects revenue of $1.9-$1.98 billion this year, a range that implies stagnation at the lower end and growth of no more than 5% compared with 2025.
The muted outlook surprised investors given the optimism Shashua has conveyed in recent months, particularly following announcements of new agreements with major automakers including Volkswagen and General Motors.
Two weeks after surprising the market with a nearly $1 billion deal to acquire robotics company Mentee, Mobileye published its results for the fourth quarter and full year of 2025. After growing revenue by 15% in 2025, a year of recovery following the downturn in 2024, the company once again disappointed, signaling sharply slower growth ahead.
For the full year, revenue rose 15% to $1.9 billion. However, performance weakened toward year-end: fourth-quarter revenue fell 9% compared with the same period in 2024, to $446 million. Gross margin also declined, slipping to 67% from 69% a year earlier, excluding accounting adjustments.
As a result, operating profit dropped sharply, from $101 million in the fourth quarter of 2024 to just $41 million, even before accounting items that ultimately pushed the company into a loss. Net profit for the quarter fell 58% year on year, to $45 million.
Mobileye attributed the weakness primarily to an 11% decline in sales of its EyeQ driver-assistance systems and again pointed to inventory imbalances, an issue that weighed on results in 2024 as well.
The pressure on profitability is notable given the cost-cutting measures Mobileye has already implemented. These include several rounds of layoffs, most recently announced in December, when the company said it would cut 4% of its workforce, or roughly 200 employees. Over the past two years, Mobileye has also shut down its LiDAR division, which employed about 60 people, and its lane-departure warning systems unit, which employed 130 workers, 90 of them in Israel.
Mobileye currently employs around 4,300 people, more than 3,000 of them in Israel, primarily at its main campus in Jerusalem and a large site in Tel Aviv.
