Mobileye lifts annual revenue forecast as auto industry demand recovers

April 23 (Reuters) - Mobileye Global ‌raised its annual ​revenue ​forecast on Thursday, buoyed by robust demand for its advanced driver-assistance systems as automakers placed more orders after working ‌through an inventory glut last year.

Shares of the self-driving ⁠tech company jumped nearly 14% in early trading, after it also topped Wall Street ‌estimates for first-quarter results and ‌said it expects upbeat demand in the current quarter as well.

Car manufacturers are now restocking inventories after grappling with years of ​pandemic-related surplus, benefiting Mobileye at a time when a growing shift toward self-driving technologies is already boosting demand for its chips ⁠and software.

Mobileye said its first-quarter results reflect a stronger-than-expected start to 2026. Executives on a post-earnings ​call said demand in China was healthy, and also noted the company's recent ADAS partnership with Indian automaker ​Mahindra & Mahindra.

"The geopolitical and economic environment remains ‌volatile, but based on our visibility for the second quarter, we believe there is sufficient conservatism baked ⁠into the second half" of the year, Mobileye CEO Amnon Shashua said.

Chipmaker Texas Instruments on Wednesday also projected strong quarterly results, partly due to a ⁠recovery in the auto industry, and said it expects continued growth in the automotive ​market even as tariff and cost pressures bite.

Jerusalem, Israel-based Mobileye reported revenue of $558 million for the first quarter ended March, compared with analysts' average estimate of $515.6 ‌million, according to data compiled by LSEG.

Adjusted earnings of 12 cents per share also topped expectations of ‌9 cents per share.

Mobileye now expects 2026 revenue between $1.94 billion and $2.02 billion, ⁠compared with its previous forecast ‌of $1.90 billion and $1.98 billion. ​Analysts on average were expecting revenue of $1.95 billion.

(Reporting by Deborah Sophia and Anhata Rooprai in Bengaluru; Editing by ‌Leroy Leo)

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