Ambarella beats Q2 revenue, adjusted EPS estimates

Ambarella

28/08/2025 21:15

Overview

Ambarella fiscal Q2 rev rises 49.9% yr/yr to $95.5 mln, beating analysts' expectations, per LSEG data

Adjusted EPS for fiscal Q2 at $0.15, exceeding estimates

Co reports non-GAAP net profit of $6.4 mln, excluding stock-based compensation and acquisition costs

Outlook

Ambarella expects Q3 revenue between $100 mln and $108 mln

Company anticipates Q3 non-GAAP gross margin of 60.0% to 61.5%

Ambarella sees Q3 non-GAAP operating expenses of $54 mln to $57 mln

Company raises fiscal 2026 revenue growth estimate to 31%-35%

Result Drivers

EDGE AI GROWTH - Strong secular growth in edge AI market and expanding applications drive unit demand, per CEO Fermi Wang

HIGHER PRICED PRODUCTS - Demand for higher-priced 5nm AI SoCs contributes to revenue increase

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$95.51 mln
$90 mln (11 Analysts)
Q2 Adjusted EPS
Beat
$0.15
$0.05 (12 Analysts)
Q2 Net Income
-$20 mln
Q2 Gross Profit
$56.23 mln
Q2 Income from Operations
-$21.99 mln
Q2 Pretax Profit
-$19.74 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Ambarella Inc is $80.00, about 10.1% above its August 27 closing price of $71.93

The stock recently traded at 352 times the next 12-month earnings vs. a P/E of 670 three months ago

Press Release: ID:nGNX3cldmc

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)