Ambarella Stock Earnings Reports

Ambarella reported Q2 FY2026 revenue of $95.5M (up 11% sequentially, +49.9% YoY), beating the high end of prior guidance. Management raised FY2026 revenue growth guidance to 31%–35% (approximately $379M at the midpoint) driven by strong demand for higher-priced 5nm AI SoCs and expansion of edge AI into new applications. Edge AI now represents ~80% of revenue. Key emerging end markets called out: portable video (action, panorama, body-worn), robotic aerial drones (design win with Arashi/Insta360 for an 8K 360° drone using CV5), and edge AI infrastructure (first win with N1-655 powering an on-prem multimodal networking appliance). Automotive remains strategic (CV3/CV3-AD family for L2+ to L4), but OEM decision cadence and longer time-to-revenue mean IoT/endpoints are growing faster near term. Financial highlights: non-GAAP gross margin 60.5% (Q2, low end of guide), non-GAAP net income $6.4M ($0.15/sh), cash & marketable securities $261.2M, operating cash inflow $5.5M, free cash flow $1.4M. WT Microelectronics (fulfillment partner) accounted for ~71% of Q2 revenue (concentration via a logistics partner). Q3 guidance: revenue $100M–$108M (midpoint $104M), gross margin 60%–61.5%, OpEx $54M–$57M. Management expects growth to come from roughly a 50/50 split of unit growth and ASP increases, with continued investment in product and field engineering to support multiple IoT verticals.