Mobileye Global (NASDAQ:MBLY) shares surged nearly 10% in premarket trading on Thursday after the autonomous driving technology company reported second-quarter earnings well above Wall Street expectations and increased its revenue and profit guidance for the full year.
The stronger outlook was supported by solid operational performance and the financial benefits of Israel’s new research and development incentive programme.
Earnings and revenue exceed expectations
Mobileye reported adjusted earnings of $0.19 per share for the second quarter, comfortably ahead of analysts’ consensus estimate of $0.06.
Revenue totalled $508 million, exceeding market expectations of $482.2 million and remaining broadly unchanged from the same period last year.
Following the results, the company’s shares climbed almost 10% in premarket trading.
Company increases full-year guidance
Mobileye raised its full-year 2026 revenue forecast to between $1.97 billion and $2.02 billion.
The midpoint of the updated outlook, $1.995 billion, is above analysts’ consensus estimate of $1.93 billion and represents an increase of $20 million compared with the company’s previous guidance.
The revised forecast implies annual revenue growth of between 4% and 7%.
The company also increased its adjusted operating income guidance to between $365 million and $425 million, representing an 88% increase at the midpoint compared with its previous forecast.
R&D incentives boost profitability
Mobileye said improved profitability during the quarter was primarily driven by an incentive grant under Israel’s newly enacted R&D Law, which took effect at the beginning of 2026.
The company recognised approximately $110 million in GAAP benefits and $93 million in adjusted benefits during the second quarter, reducing research and development expenses for both the first and second quarters.
For the full year, Mobileye expects to receive between $197 million and $217 million in GAAP benefits, alongside adjusted benefits of between $180 million and $200 million under the programme.
Chief Executive Officer Prof. Amnon Shashua said, “The core business continued its strong momentum in Q2 as we focus our development and execution efforts on a number of advanced product launches in late 2026 and throughout 2027.”
Operating performance continues to improve
Adjusted operating income increased 46% year over year to $155 million, while adjusted operating margin expanded to 31% from 21% in the second quarter of 2025.
Although revenue remained flat compared with last year, system volumes increased by 3%. The company said higher export volumes from Chinese automotive manufacturers were offset by lower average selling prices.
Mobileye also generated $210 million in operating cash flow during the first half of 2026, highlighting continued cash generation alongside its improving earnings outlook.
Mobileye Global stock price
