The earnings call reflects a strong performance with notable revenue growth, particularly in the AI sector, and an increased fiscal 2026 revenue guidance. However, the company is cautious due to geopolitical uncertainties and faces some challenges with automotive revenue and gross margin pressures.

Company Guidance -

Q2 2026

During Ambarella's first quarter fiscal year 2026 earnings call, the company reported impressive results with a revenue of $85.9 million, which was in the upper half of their guidance, driven largely by the strength of their AI business. AI-generated revenue accounted for more than 75% of Q1 revenue, marking the fourth consecutive quarter of record AI revenue. The IoT applications increased mid-single digits sequentially, comprising about three-quarters of total revenue, while automotive revenue declined slightly but was still up over 20% year-over-year. Ambarella raised its fiscal 2026 revenue growth estimate to a range of 19% to 25%, projecting a midpoint of approximately $348 million, up from the previous estimate due to ongoing geopolitical uncertainties. The company's gross margin was slightly above the midpoint of prior guidance at 62%, and they reported a non-GAAP net profit of $3 million or $0.07 per diluted share. For Q2 fiscal 2026, Ambarella anticipates revenue between $86 million and $94 million, with IoT applications expected to grow mid-single digits and automotive revenue to slightly increase. The company maintains a strong outlook, driven by new AI markets and continued investment in innovation.

Strong Q1 Revenue Performance

First quarter revenue reached $85.9 million, which is in the upper half of guidance, marking a 57.6% increase year over year.

AI Business Growth

AI revenues, integrating proprietary AI accelerators, accounted for more than 75% of Q1 revenue, with a record fourth consecutive quarter of AI revenue.

Increased Revenue Guidance

Fiscal 2026 revenue growth estimate increased to 19% to 25%, approximately $348 million at the midpoint, despite geopolitical uncertainties.

Diversified Market Success

Highlighting product introductions across various sectors, including enterprise security, automotive, and IoT markets, with notable products from companies like Insta360 and Xiaomi.

Positive Cash Flow and Financial Position

Generated positive free cash flow for 16 consecutive years, with cash and marketable securities reaching $259.4 million, increasing $56 million year over year.

Share Repurchase Program

Board of Directors extended the share repurchase program for an additional twelve months, with $48 million available under the authorization.

Ambarella (AMBA) Earnings, Revenues Date & History

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AMBA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 28, 2025	2026 (Q2)	0.05 / -	-0.13	―	―	―
May 29, 2025	2026 (Q1)	0.04 / 0.07	-0.26	126.92% (+0.33)	―
Feb 26, 2025	2025 (Q4)	-0.02 / 0.11	-0.24	145.83% (+0.35)	―
Nov 26, 2024	2025 (Q3)	0.04 / 0.11	-0.28	139.29% (+0.39)	―
Aug 27, 2024	2025 (Q2)	-0.19 / -0.13	-0.15	13.33% (+0.02)	―
May 30, 2024	2025 (Q1)	-0.31 / -0.26	-0.15	-73.33% (-0.11)	―
Feb 27, 2024	2024 (Q4)	-0.33 / -0.24	0.23	-204.35% (-0.47)	―
Nov 30, 2023	2024 (Q3)	-0.39 / -0.28	0.24	-216.67% (-0.52)	―
Aug 29, 2023	2024 (Q2)	-0.21 / -0.15	0.2	-175.00% (-0.35)	―
May 30, 2023	2024 (Q1)	-0.21 / -0.15	0.44	-134.09% (-0.59)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

AMBA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 29, 2025	$62.00	$52.64	-15.10%
Feb 26, 2025	$75.81	$62.82	-17.13%
Nov 26, 2024	$68.41	$72.44	+5.89%
Aug 27, 2024	$52.79	$58.40	+10.63%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.