Mobileye Global Inc. (NASDAQ:MBLY) saw its stock drop Thursday even after the autonomous driving technology company reported better-than-expected third-quarter 2026 results and raised its full-year revenue and profit forecasts. The market, it seems, focused on the pricing pressure that has been squeezing the company.

Beating the Street, but Not the Pricing Trend

Mobileye reported adjusted earnings of 11 cents per share, beating analysts’ consensus estimate of 10 cents. Revenue declined 2% year over year to $492 million but topped Wall Street’s estimate of $476.9 million, according to market data.

The revenue decline reflected a 5% drop in average system prices, driven by a higher mix of lower-priced exports from Chinese automakers and reduced SuperVision volumes. In other words, Mobileye is selling more of its cheaper stuff and less of its premium stuff, which is great for volume but not for the top line.

During Thursday’s earnings call, CEO Amnon Shashua said pricing pressure from Chinese automakers contributed to a nearly $2 decline in Mobileye’s average selling price in 2026.

“So 2027 we expect to be more flat. There might be some moderate decrease as relates to, again, software content and demand for higher bundles versus lower bundles,” Shashua said.

He added that the company does not expect the same pricing headwinds it experienced in 2026. That’s the light at the end of the tunnel investors are hoping for.

GAAP loss was 8 cents per share.

Adjusted operating income rose 20% to $89 million, while adjusted operating margin expanded to 18% from 15% a year earlier. Adjusted net income increased 25% to $95 million.

The company said an Israeli research and development incentive boosted third-quarter adjusted operating income by $51 million and GAAP operating income by $52 million. That’s a nice little tailwind, though not one you can count on every quarter.

Gross profit climbed 7% to $261 million, with gross margin expanding 483 basis points to 53%. However, adjusted gross margin contracted 304 basis points to 64%. Operating loss narrowed to $82 million from $109 million a year earlier. Operating cash flow declined to $93 million from $167 million.

Self-Driving Growth Opportunities

Shashua highlighted strong demand for advanced driver-assistance systems, or ADAS, with EyeQ chip shipments rising 11% during the first nine months of 2026, compared with an estimated 1% decline in global vehicle production. That’s a solid outperformance, and it suggests Mobileye is gaining content per vehicle even as the overall auto market softens.

Shashua sees multiyear growth opportunities as automakers expand ADAS adoption and Mobileye increases its technology content per vehicle. Recent Surround ADAS and Cloud-Enhanced ADAS design wins could boost revenue per vehicle as those programs enter production. In robotaxis, Shashua highlighted progress in permits, public deployments and partner vehicle selections, while emphasizing that driverless performance remains a critical milestone. Mobileye is also pursuing recurring revenue opportunities while maintaining its capital-light business model.

Raising the Outlook

Mobileye raised its full-year 2026 revenue forecast to $1.995 billion-$2.020 billion from $1.970 billion-$2.020 billion. The revised outlook compares with analysts’ consensus estimate of $2.005 billion. The company also increased its adjusted operating income forecast to $380 million-$420 million from its previous range of $365 million-$425 million.

MBLY Price Action: Mobileye Global shares were down 7.01% at $6.56 at the time of publication on Thursday. The stock is trading near its 52-week low of $6.40, according to market data. So despite the beat and raise, Mr. Market is clearly worried about the pricing picture. But if Shashua is right about 2027, the current pessimism might look overdone.