Mobileye

Revenue held steady at 508 million dollars this quarter, but the money kept from it jumped. Adjusted operating income rose 46 percent to 155 million dollars, and the operating loss shrank by 59 percent. A new Israeli research incentive law handed them roughly 110 million dollars back this quarter alone, and it has no expiration date.

They lifted their full year outlook, now expecting between 1.97 and 2.02 billion dollars in revenue. The bigger jump is in profit, where the midpoint guidance rose 88 percent to a range of 365 to 425 million dollars. They also landed a new Stellantis design win that earns more than double the profit per unit of their standard product.

Sales grew zero percent versus a year ago. Volumes rose 3 percent, but the average price per chip fell because a lot of the demand came from Chinese car makers who pay less. Gross margin slipped from 50 percent to 46 percent as a result.

Under standard accounting they still lost 21 million dollars this quarter, and the full year guidance includes a 3.8 billion dollar writedown on past acquisitions. Much of the improved profit picture comes from a government grant rather than selling more product, so the real test is whether the robotaxi and advanced driving launches in late 2026 and 2027 actually deliver.