Mobileye Global Inc. (NASDAQ:MBLY) shares dropped more than 6% in premarket trading on Thursday after the autonomous driving specialist reported fourth-quarter earnings that fell well short of expectations, overshadowing a modest revenue beat.
Mobileye posted adjusted earnings per share of $0.06 for the fourth quarter of 2025, far below the $0.24 forecast by analysts. Revenue reached $446 million, topping the consensus estimate of $431.85 million, but marking a 9% decline from the same period a year earlier.
The year-on-year revenue drop was mainly driven by an 11% fall in EyeQ system-on-chip volumes, as unusually tight inventory levels at Tier 1 customers constrained demand.
Profitability also came under pressure. Mobileye’s adjusted operating margin slid to 9% in the quarter, down sharply from 21% a year earlier, as higher operating costs weighed on results despite the better-than-expected top line.
“I am proud of the Mobileye team for delivering 2025 results that were well above our initial expectations. 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,” said Amnon Shashua, President and Chief Executive Officer of Mobileye.
Looking ahead, the company issued fiscal 2026 revenue guidance of $1.9 billion to $1.98 billion, ahead of the analyst consensus of $1.87 billion. The outlook implies flat to 5% year-on-year growth, with roughly 19% growth expected in the first quarter of 2026.