Innoviz 2Q Results Modestly Better; Security and Defense Momentum Builds as Automotive Progress Remains Steady; Mobileye Drive SoP in Late 2026 Remains a Key Catalyst

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Innoviz

2Q Results Modestly Better; Security and Defense

Momentum Builds as Automotive Progress Remains

Steady; Mobileye Drive SoP in Late 2026 Remains a

Key Catalyst

We continue to view the risk-reward as asymmetric and maintain our OW

rating, anchored by the ongoing L3/L4 autonomous program launches in the

automotive sector and growing lidar sensor utilization in security, defense, and

smart applications. The next six months will be pivotal for INVZ, with

substantial progress needed on the late 2026/early 2027 Mobileye Drive SoP

ramp as well as sustained pricing power and commercial execution with security

and defense partners to help offset incremental dilution overhang (following the

recent ~$30 mn or ~35% share count dilution). While near-term funding from

security and defense applications provides a buffer, our long-term thesis is

fundamentally tied to INVZ’s ability to deliver in the automotive segment, and

securing incremental lidar business with Western OEMs over the next year will

be critical to reinforcing our constructive stance and enabling a re-rating in

shares.

Turning to the quarter, 2Q revenue of $18 mn came in ahead of both JPMe and

consensus at $16 mn, though gross profit was softer at $1 mn (vs. JPMe $2 mn). FY26

guidance was reiterated, with management maintaining a revenue target of $67–73

mn and projecting 2–3 new program wins this year. However, our follow-up suggests

that ongoing traction in defense and security markets, including the recent ~$3.5 mn

contract win with a defense customer, will count toward these targets, rather than the

2–3 automotive program wins we had anticipated. Within automotive, INVZ reported

that progress toward SoP on key customer contracts including Mobileye Drive/

Chauffeur, Daimler Truck, and LOXO remains on track, with Mobileye Drive

shipments expected to ramp in late 2026/early 2027. Feedback on lidar performance

in VW ID. Buzz units has been constructive, and Mobileye is expected to retain a

9-lidar hardware stack on its next-generation platform vs. prior expectations of

downsizing or eliminating lidar.…