Mobileye Q1 revenue rises 27% but posts $3.78B goodwill impairment
Mobileye reported Q1 revenue of $558 million, up 27% year-over-year, with gross profit rising 33% to $275 million, but recorded a $3.89 billion operating loss largely driven by a $3.78 billion non-cash goodwill impairment. It authorized a $250 million share repurchase and lifted its 2026 revenue guidance midpoint by 2%.
1. Q1 Financial Performance
Mobileye reported Q1 2026 revenue of $558 million, a 27% increase year-over-year, and gross profit climbed 33% to $275 million. Growth was supported by a 28% rise in EyeQ SoC volumes driving higher margin product mix.
2. Impairment Drives Operating Loss
The company recorded a $3.89 billion operating loss and $3.81 billion net loss, primarily due to a $3.78 billion non-cash goodwill impairment from Intel’s 2017 acquisition. Loss per share widened to $4.68 compared with $0.13 a year earlier.
3. Cash Flow, Acquisition and Buyback
Mobileye generated $75 million in operating cash flow but saw its cash balance fall by $591 million following the Mentee Robotics acquisition. Management authorized a $250 million share repurchase to offset dilution from stock-based compensation and acquisition-related issuances.
4. Raised Guidance and Strategic Wins
For full-year 2026, Mobileye raised its revenue guidance midpoint by 2% to $1.97 billion, reflecting stronger-than-expected EyeQ shipments and operating leverage. The company is advancing its Mobileye Drive robotaxi ecosystem with Volkswagen and secured SuperVision and Surround ADAS design wins with Mahindra in India.