Mobileye Global Inc. (NASDAQ:MBLY) shares rose on Thursday after the company announced a share repurchase program of up to $250 million and reported stronger-than-expected first-quarter results.
Mobileye reported a strong start to 2026, beating analyst expectations on both earnings and revenue while delivering double-digit growth, despite a large goodwill impairment that impacted GAAP results.
The rally was likely magnified by elevated short interest, with 13.72% of the public float sold short, signaling substantial bearish positioning that may have fueled a squeeze.
Financial Performance
Revenue rose 27% year over year to $558 million, topping the $515.501 million estimate, while adjusted diluted EPS of 12 cents beat the 9 cents estimate.
GAAP diluted EPS was $(4.68), impacted by a $3,788 million non-cash goodwill impairment tied to Intel’s 2017 acquisition of Mobileye.
Adjusted operating income increased 61% to $95 million, with adjusted operating margin expanding to 17% from 13% last year. Adjusted net income rose 52% to $96 million.
Gross profit increased 33% to $275 million, while gross margin improved to 49%, though adjusted gross margin declined due to a higher EyeQ-related cost per unit driven by product mix.
Cash Flow And Capital Allocation
Operating loss widened to $3,896 million due to the goodwill impairment. Operating cash flow totaled $75 million, with $30 million spent on property and equipment. The acquisition of Mentee Robotics reduced cash by $591 million, net of cash acquired.
The company also authorized a $250 million share repurchase program to offset dilution from stock-based compensation and shares issued in the Mentee Robotics deal.
Operations And Outlook
Mobileye continues to advance its autonomous driving programs, with more than 100 ID. Buzz vehicles powered by Mobileye Drive testing across six cities.
The company also secured new design wins with Mahindra for SuperVision and Surround ADAS solutions.
“First quarter results reflected a stronger than expected start to 2026, and continued favorable demand trends enable us to modestly increase our 2026 outlook. We also secured an important design win with Mahindra which adds a third Surround ADAS customer and a second customer for our next-generation SuperVision product,” said CEO Professor Amnon Shashua.
“In parallel, we achieved significant milestones related to our robotaxi technology stack and our EyeQ6H-based Supervision L2++ and Chauffer L3 programs with VW group. Continued execution across these programs is key both to converting our advanced product pipeline into future revenue growth and to winning additional customers.”
Mobileye raised its full-year 2026 revenue guidance to $1.935 billion–$2.015 billion. This is up from the prior range of $1.900 billion–$1.980 billion and compares with a $1.946 billion estimate.
The company also increased adjusted operating income guidance by 8% at the midpoint to $185 million–$235 million.
Mobileye Global Short Interest Report
Short interest in Mobileye Global declined in the most recent reporting period, falling to 29.11 million shares from 29.98 million. The position represents 13.72% of the company’s public float.
Based on an average daily trading volume of 7.21 million shares, it would take approximately 4.04 days for short sellers to cover their positions without significantly impacting the stock price.
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $14.32. Recent analyst moves include:
- BNP Paribas: Neutral (Lowers Target to $8.50) (April 22)
- JP Morgan: Neutral (Lowers Target to $9.00) (April 16)
- Goldman Sachs: Neutral (Lowers Target to $8.00) (April 14)
MBLY Stock Price Activity: Mobileye Global shares were up 14.19% at $9.02 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
Recent Comments