Ambarella (AMBA) stock was on the rise Friday after the fabless semiconductor design company posted strong Fiscal Q2 2026 earnings results. This began with its adjusted earnings per share of 15 cents, which tripled Wall Street’s estimate of 5 cents. This was also a positive shift compared to its adjusted EPS of -13 cents from the same period of the year prior.
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Another win for Ambarella stock was the company’s Fiscal Q2 2026 revenue of $95.5 million, compared to analysts’ estimate of $90 million. It was also up 49.9% year-over-year from $63.7 million. Ambarella President and CEO Fermi Wang noted, “We are experiencing strong secular growth in the edge AI market, with an expanding breadth of applications driving unit demand, often with our higher priced 5nm AI SoCs.”
Ambarella stock was up 21.76% on Friday, extending an 18.23% year-to-date rally. The shares have also climbed 18.31% over the past 12 months. Today’s news also brought heavy trading to AMBA stock, as some 1.36 million shares changed hands, compared to a three-month daily average of about 536,000 units.
Ambarella Guidance
Ambarella’s strong Q2 results prompted the company to increase its 2026 guidance. It now expects revenue growth to range from 31% to 35%, with a midpoint of $379 million. This would easily see the company beat Wall Street’s revenue estimate of $356.58 million for the period.
Ambarella also provided guidance for Fiscal Q3 2026 in its most recent earnings report. It expects revenue to range from $100 million to $108 million. Even at the low end of its outlook, the company would surpass analysts’ revenue estimate of $93.86 million. The midpoint of its guidance would also be a quarterly record for the company.
Is Ambarella Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Ambarella is Moderate Buy, based on seven Buy and five Hold ratings over the past three months. With that comes an average AMBA stock price target of $79.44, representing a potential 5.89% downside for the shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
