Mobileye Global Inc. (NASDAQ:MBLY) shares rose on Thursday after the company announced a share repurchase program of up to $250 million and reported stronger-than-expected first-quarter results.
Mobileye reported a strong start to 2026, beating analyst expectations on both earnings and revenue while delivering double-digit growth, despite a large goodwill impairment that impacted GAAP results.
The rally was likely magnified by elevated short interest, with 13.72% of the public float sold short, signaling substantial bearish positioning that may have fueled a squeeze.
Financial Performance
Revenue rose 27% year over year to $558 million, topping the $515.501 million estimate, while adjusted diluted EPS of 12 cents beat the 9 cents estimate.
GAAP diluted EPS was $(4.68), impacted by a $3,788 million non-cash goodwill impairment tied to Intel’s 2017 acquisition of Mobileye.
Adjusted operating income increased 61% to $95 million, with adjusted operating margin expanding to 17% from 13% last year. Adjusted net income rose 52% to $96 million.
Gross profit increased 33% to $275 million, while gross margin improved to 49%, though adjusted gross margin declined due to a higher EyeQ-related cost per unit driven by product mix.