Goldman Sachs Mobileye Global Inc. (MBLY): Better Results and Guidance; Bookings and Program Ramps in Focus; 1Q26 EPS Wrap

Goldman Sachs maintains a Neutral rating on Mobileye Global Inc. (MBLY) with a 12-month target price of $9.00, offering 13.9% upside from the current $7.90 share price. Mobileye reported strong 1Q26 results, with revenue reaching $558 million, up 27% year-over-year and beating both Goldman's and consensus estimates of $520 million. Non-GAAP EPS excluding stock-based compensation was $0.12, surpassing the market's $0.08 expectation. The company raised its 2026 revenue guidance to $1.935-$2.015 billion and adjusted EBIT guidance to $185-$235 million. EyeQ SoC shipments surged 28% year-over-year, partially driven by customer safety inventory normalization. Adjusted gross margin declined 240 basis points to roughly 66.3% due to product mix, while adjusted operating margin improved 350 basis points to 17.0% on higher operating leverage. Mobileye successfully completed its acquisition of Mentee Robotics for approximately $591 million in net cash and announced a share repurchase program of up to $250 million. Despite the positive momentum, Goldman's Neutral stance reflects an intensely competitive autonomous driving landscape and a recent lack of new L2++ and L3 design wins from Western OEMs. While future revenue growth is expected to accelerate beyond 2028 through Surround ADAS and Chauffeur products, near-term visibility remains limited. The company still targets initial commercial driver-out deployment with VW MOIA later this year, scaling in 2027.