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Mobileye shares plunge after CEO founder steps down and guides for decline
The autonomous-driving company posted second-quarter revenue of $508 million and raised full-year revenue guidance to a $2 billion midpoint, but it also forecast a 5% to 6% sequential revenue drop in the third quarter.
Mobileye shares fell sharply after the company reported a second-quarter beat that included higher revenue, earnings and guidance, while also announcing founder and long-time CEO Amnon Shashua will step down once a successor is named. Yahoo Finance said the stock dropped about 15% in a single session, its steepest decline in nearly two years, following the July 23 update. For the quarter ended in July 2026, Mobileye posted revenue of $508 million and adjusted EPS of $0.19, both ahead of Wall Street expectations. Management also raised full-year revenue guidance to a $2 billion midpoint from $1.98 billion, and improved adjusted operating income to $155 million versus the $42.74 million expected, with margin rising to 30.5%.
The company guided for a 5% to 6% sequential revenue decline in the third quarter. Despite the profitability improvements, Yahoo Finance noted free cash flow remained negative at -$45 million, though that was an improvement from -$199 million in the same quarter a year earlier. Mobileye Global also guided operating margin to improve to -5.9% from -14.6% a year ago.
Over the same period, the outlet highlighted that Mobileye shares have been weak overall, down 46.8% over the past 52 weeks and 21.4% year to date. Yahoo Finance framed the sell-off as investors reacting to the CEO transition and the near-term revenue outlook, even as the latest quarter beat expectations.