Mobileye shares dropped over 6% premarket after the autonomous driving technology firm posted a fourth-quarter earnings miss. Adjusted EPS came in at $0.06, far below the $0.24 analyst forecast, overshadowing a revenue beat of $446 million. The revenue decline of 9% year-over-year was driven by an 11% drop in EyeQ SoC volumes.

The sharp fall in adjusted operating margin to 9% from 21% a year ago highlights profitability pressures. Higher operating expenses eroded the revenue gains. CEO Amnon Shashua cited strong 2025 results and a cash-generative business, but the market's focus remained on the earnings shortfall and inventory issues at Tier 1 customers.

For 2026, Mobileye issued revenue guidance of $1.9-1.98 billion, above the analyst consensus of $1.87 billion. This implies flat to 5% annual growth, with a stronger 19% increase expected in the first quarter. Investors will watch for execution on this outlook amid ongoing supply chain and demand challenges.