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Benzinga
Benzinga
Business
Anusuya Lahiri

INSANE: Autonomous driving player mobileye stock drops despite raising outlook margin growth | Vintage Vibes

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Mobileye Global (NASDAQ: MBLY) stock gained in the premarket session on Thursday after it reported its fiscal second-quarter 2025 results. Soon, the stock gave up all gains and fell 6%.

The Intel (NASDAQ:INTC) spinoff autonomous firm reported a quarterly revenue growth of 15% year-on-year to $506.00 million, beating the analyst consensus estimate of $463.26 million. 

A 28% increase in EyeQ volumes, resulting from higher customer demand and the normalization of excess inventory by the company’s Tier 1 customers previously used to satisfy demand during 2024, partially offset by lower SuperVision volumes on a Y/Y basis.

Adjusted EPS of 13 cents topped the analyst consensus estimate of 9 cents. 

Also Read: Mobileye Just Locked In A New Automaker, And It’s For Hands-Off Driving At Highway Speeds

EyeQ and SuperVision revenue was $481 million versus $413 million a year ago. 

The Average System Price was $49.7, down from $54.4 in the prior year. The number of systems shipped rose to 9.7 million from 7.6 million a year ago.

Margins

Gross margin climbed by 219 bps to 50%. Adjusted gross margin declined by 67 bps to 69% due to a slight reduction in EyeQ ASP, mainly due to higher volumes in China. 

The adjusted operating margin was 21% from 18% a year ago.

As of June 28, Mobileye held $1.71 billion in cash and equivalents and generated a quarterly operating cash flow of $213 million.

In July 2025, Mobileye used $100 million of cash to repurchase stock from Intel.

Mobileye CEO Prof. Amnon Shashua said the company delivered strong revenue growth and cost control in the quarter, prompting a full-year outlook raise. He added that solid progress on advanced product programs boosts confidence in a significant growth inflection by 2027, with Drive and SuperVision expected to drive that momentum.

Outlook

Mobileye raised fiscal 2025 revenue to $1.765 billion- $1.885 billion (prior $1.690 billion-$1.810 billion) versus the $1.770 billion analyst consensus estimate and adjusted operating income of $210 million-$286 million (prior $175 million-$260 million).

Mobileye stock has plunged over 19% year-to-date. In April, Needham analyst Quinn Bolton lowered his price forecast on the stock after trimming his 2026 estimates due to expected delays in SuperVision and CAV unit volumes, driven by tariff-related uncertainty.

Still, he pointed to several positives in the quarter, including strong design win momentum, such as Mobileye’s first Surround ADAS deal and a major ADAS contract with a Korean carmaker.

Price Action: Mobileye stock is down 6.30% at $15.09 at the last check Thursday.

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Photo by RYO Alexandre via Shutterstock

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