Mobileye shares fell in pre-market trading on Wall Street after Amnon Shashua\u2019s 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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"Mobileye shares fell in pre-market trading on Wall Street after Amnon Shashua\u2019s company issued a weak growth forecast…\n","protected":false},"author":2,"featured_media":251759,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":{"0":"post-251758","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-headlines","9":"tag-news","10":"tag-top-news","11":"tag-top-stories","12":"tag-topnews","13":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/251758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=251758"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/251758\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/251759"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=251758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=251758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=251758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}