Mobileye raises annual revenue forecast as auto industry demand recovers
FILE PHOTO: Mobileye logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
April 23 : Mobileye Global raised its annual revenue forecast on Thursday, buoyed by robust demand for its advanced driver-assistance systems as automakers placed more orders after working through an inventory glut last year.
Shares of the self-driving tech company jumped 19 per cent in premarket trading, after it also topped Wall Street estimates for first-quarter results.
Car manufacturers are now restocking inventories after grappling with years of pandemic-related surplus, benefiting Mobileye at a time when a growing shift toward self-driving technologies is already boosting demand for its chips and software.
Mobileye said its first-quarter results reflect a stronger-than-expected start to 2026, after its ADAS technologies were also picked by Indian automaker Mahindra & Mahindra for at least six upcoming models.
Chipmaker Texas Instruments on Wednesday also projected strong quarterly results, partly due to a recovery in the auto industry, and said it expects continued growth in the automotive market even as tariff and cost pressures bite.
Beyond its chips, Mobileye has also tied its advanced-product roadmap to Volkswagen's commercial robotaxi push, which is targeting service in several cities by the end of 2027, while the automaker works toward removing the safety driver in 2026.
The Jerusalem, Israel-based company reported revenue of $558 million for the first quarter ended March, compared with analysts' average estimate of $515.6 million, according to data compiled by LSEG.
Adjusted earnings of 12 cents per share also topped expectations of 9 cents per share.
Mobileye now expects 2026 revenue to be between $1.94 billion and $2.02 billion, compared with its previous forecast of $1.90 billion and $1.98 billion. Analysts on average were expecting revenue of $1.95 billion.
