Mobileye Global Inc. (MBLY) shares plummeted 9.11% during intraday trading on Thursday, as investors reacted negatively to the company's second-quarter 2026 results and a surprise leadership transition announcement.

The autonomous driving technology company reported flat year-over-year revenue of $508 million for the quarter, with gross margin declining 3.54 percentage points to 46%. The margin compression was attributed to lower average selling prices for its EyeQ chips and a higher mix of lower-margin SuperVision revenue. While adjusted earnings per share of $0.19 significantly beat analyst estimates of $0.06, the lack of top-line growth and margin erosion overshadowed the bottom-line beat.

Compounding the pressure, Mobileye announced that founder and CEO Prof. Amnon Shashua plans to step down from his role once a successor is appointed. The board has launched a search for a new chief executive, creating uncertainty around the company's leadership at a critical time of strategic execution. Shashua will remain on the board and has been offered the role of chairman after the new CEO is in place.