Mobileye Bets $900 Million on Robots as Auto Business Faces Pressure

Mobileye Global Inc. reported its 2025 fourth-quarter earnings on January 22, presenting a year of strong growth tempered by a recent slowdown. While full-year revenue jumped 15% to $1.894 billion, quarterly sales dipped 9% to $446 million, a decline CEO Amnon Shashua linked to broader automotive industry softness. The company finished the year with a robust $1.8 billion in cash.

The most significant news, however, wasn't in the financials. In early January, Mobileye announced the acquisition of Mentee Robotics for $900 million. Founded by Shashua, Mentee develops a humanoid robot designed for warehouse and home tasks. Mobileye stated the move accelerates its push into 'Physical AI,' applying its autonomous vehicle expertise to robotics. Initial customer tests are planned for this year.

Within its core automotive sector, Mobileye secured major contracts for its next-generation EyeQ6 chip with two large automakers. The company's order pipeline now stands at $24.5 billion over eight years. Still, guidance for 2026 is cautious, projecting revenue between $1.9 billion and $1.98 billion. The forecast reflects a flat global auto market, economic uncertainty in China, and the financial impact of a stronger Israeli shekel.

Analysts view the Mentee acquisition as a strategic diversification play. Mobileye's stock traded around $10.55 following the report. The company's path forward now involves navigating near-term automotive headwinds while executing on its expensive bet that the future of automation walks on two legs.

Source: Webpronews