Mobileye Global forecast annual revenue below Wall Street expectations on Thursday, signalling uncertain demand for its assisted-driving chips as automakers grapple with trade tensions and a softer outlook for vehicle production.
The outlook comes as U.S. President Donald Trump’s tariffs on imported vehicles and auto parts disrupt the global automotive industry, prompting carmakers to withdraw forecasts and reconfigure supply chains. The uncertainty is compounded by North American manufacturers scaling back previously aggressive electric vehicle plans amid intense competition from China, the loss of some tax incentives and a renewed focus on lower-cost models and hybrids.
Mobileye said it expects revenue in 2026 to range between $1.90 billion and $1.98 billion, below analysts’ average estimate of $2.0 billion, according to data compiled by LSEG.
“The forecast accounts for a level of understanding that there is some volatility in the industry, so we want it to be on the more conservative side,” said Nimrod Nehushtan, executive vice president at Mobileye.
The company has previously said it is not directly exposed to tariffs because its customers bear the cost of imported components. However, it has warned that demand for its products could be affected if automakers scale back vehicle production in response to higher costs and weaker consumer demand.
“This isn’t panic, it’s prudence,” said Jeremy Goldman, noting that Mobileye is factoring in macroeconomic risks such as softer auto demand and potential production disruptions from tariffs, even if the company itself does not directly pay the duties.
Analysts remain divided on the outlook for the automotive market in 2026. Cox Automotive has forecast a 2.4% decline in auto sales, citing slower economic growth and reduced EV incentives. Others point to potential offsets, including lower interest rates and a wave of expiring vehicle leases that could support demand.
Despite the cautious outlook, Mobileye reported stronger-than-expected results for the fourth quarter. Revenue rose to $446 million, exceeding analysts’ estimates of $432.3 million, reflecting resilient near-term demand for advanced driver assistance systems even as the broader market outlook becomes less certain.