Mobileye wrote down $3.79 billion of goodwill in the first quarter of 2026 and reported a $3.82 billion net loss

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Mobileye recorded a non-cash goodwill impairment of $3.79 billion in the quarter ended Mar 28, 2026, and a net loss of $3.82 billion, in a Form 10-Q, the quarterly report US-listed companies file with the SEC, filed on Apr 23, 2026. A year earlier the net loss was $102 million. The operating loss was $3.9 billion, against $117 million.1^,2^,3^,4^,5^,6^,7^,8

Mobileye said it ran an interim goodwill test on its “Mobileye” reporting unit after its Class A share price and market capitalization fell 35% since the most recent assessment date. The test required a significant increase in the discount rate, which the company tied to higher risk premiums linked to global macroeconomic conditions in 2026, including geopolitical risks in the Middle East, particularly the conflict between Israel and Iran. The company said the goodwill dated from Intel’s 2017 acquisition of Mobileye and was pushed down to its balance sheet with the 2022 IPO. Goodwill stood at $4.9 billion at Mar 28, 2026, against $8.2 billion at Dec 27, 2025, after the impairment and $498 million added by the Mentee Robotics acquisition.9^,10^,11^,12^,13

Management tied the 27.4% revenue increase mainly to EyeQ chip revenue, up 24% on a 28% rise in volume, which it put down to higher EyeQ demand and to the normalization of safety stock at Tier 1 customers after a draw down in the fourth quarter of 2025. Those customers were the Tier 1 automotive suppliers through which Mobileye mainly sold its EyeQ chips.14^,15^,16

The company’s own adjusted operating income, a non-GAAP measure, was $95 million, against $59 million a year earlier. Mobileye defined it as GAAP operating income excluding amortization of acquired intangibles, share-based compensation, acquisition-related expenses and goodwill impairment.17^,18

Mobileye completed its acquisition of Mentee Robotics, a humanoid robotics company, on Feb 3, 2026. It said the purchase made it a provider of what it called Physical AI across autonomous driving and humanoid robotics. The agreement provided for $900 million in all, about $612 million in cash and 26,279,824 Class A shares. All of the shares went to Mentee’s founders, among them Mobileye’s chief executive, Amnon Shashua, and its chief technology officer, Shai Shalev-Shwartz. Because 90% of the shares depended on the founders’ continued employment, Mobileye said it would recognize their $207 million fair value as share-based compensation over two and four years. With the results, Mobileye announced a repurchase authorization of up to $250 million, meant to partly offset dilution from stock-based compensation and the Mentee Robotics shares.19^,20^,21^,22^,23^,24

Our records hold revenue, operating income, net income and diluted earnings per share for the quarter ended Mar 28, 2026, and one value for each period, so they cannot say whether the year-earlier figures were restated.25^,26