Ambarella Q2 revenue slightly beats estimates on record edge AI sales; forecasts growth

Ambarella

03/09/2026 21:14

Overview
Edge AI semiconductor firm's fiscal Q2 revenue rose 13% yr/yr, slightly beating analyst expectations
Non-GAAP net income for Q2 increased from a year ago
Company reported record edge AI revenue, with growth in Auto and IoT markets

Outlook
Ambarella expects Q3 revenue between $115 mln and $124 mln
Company sees Q3 non-GAAP gross margin between 59.0% and 60.0%
Ambarella says strategic initiatives are expanding its market reach and serviceable market forecast

Result Drivers
EDGE AI GROWTH - Co said record edge AI revenue reflected balanced sequential growth in Auto and IoT markets, with strong growth from 5nm CV75 and CV72 AI SoCs
NEW PRODUCTS AND PARTNERSHIPS - Co cited progress on strategic priorities, including launch of X7 AI Accelerator and new agreements with Macnica and CapGemini, as supporting market expansion

Company press release: ID:nGNX4ltx9m

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$108.13 mln
$107.75 mln (11 Analysts)
Q2 Net Loss
 
$6.69 mln
 
Q2 Gross Profit
 
$62.42 mln
 
Q2 Operating Loss
 
$8.14 mln
 
Q2 Pretax Loss
 
$6.34 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "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 $98.00, about 46% above its September 2 closing price of $67.14
The stock recently traded at 72 times the next 12-month earnings vs. a P/E of 82 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)