Autonomous driving technology company Mobileye (NASDAQ: MBLY) reported Q2 CY2026 results exceeding the market’s revenue expectations, but sales were flat year on year at $508 million. The company’s full-year revenue guidance of $2 billion at the midpoint came in 0.8% above analysts’ estimates. Its non-GAAP profit of $0.19 per share was significantly above analysts’ consensus estimates.

Is now the time to buy Mobileye? Find out by accessing our full research report, it’s free.

Company Overview

With its EyeQ chips installed in over 200 million vehicles worldwide, Mobileye (NASDAQ: MBLY) develops advanced driver assistance systems and autonomous driving technologies that help vehicles detect and respond to road conditions.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Mobileye’s 9.7% annualized revenue growth over the last five years was solid. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Mobileye’s recent performance shows its demand has slowed as its annualized revenue growth of 4.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

This quarter, Mobileye’s $508 million of revenue was flat year on year but beat Wall Street’s estimates by 4.7%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and implies its products and services will face some demand challenges.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Operating Margin

Mobileye’s high expenses have contributed to an average operating margin of negative 83.6% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

Analyzing the trend in its profitability, Mobileye’s operating margin decreased significantly over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Mobileye’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

Mobileye’s operating margin was negative 5.9% this quarter.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Mobileye’s full-year EPS dropped 115%, or 29.2% annually, over the last three years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Mobileye’s low margin of safety could leave its stock price susceptible to large downswings.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Mobileye, its two-year annual EPS declines of 5.9% show it’s still underperforming. These results were bad no matter how you slice the data.

In Q2, Mobileye reported adjusted EPS of $0.19, up from $0.13 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Mobileye’s full-year EPS to shrink by 47% from $0.46 to $0.24.

Key Takeaways from Mobileye’s Q2 Results

It was good to see Mobileye beat analysts’ EPS expectations this quarter and its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The market seemed to be hoping for more, and the stock traded down 5.9% to $8.33 immediately after reporting.

So should you invest in Mobileye right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).