Ambarella slightly beats Q1 revenue estimates, sets $50 million buyback

Ambarella

28/05/2026 21:19

Overview
Edge AI semiconductor firm's fiscal Q1 revenue rose 17%, slightly beating analyst expectations
Adjusted EPS for fiscal Q1 increased year-over-year
Company repurchased $2.4 mln in shares, authorizes new $50 mln buyback program through June 2027

Outlook
Ambarella expects Q2 revenue between $105.0 mln and $111.0 mln
Company sees Q2 non-GAAP gross margin between 59.0% and 60.5%
Ambarella expects Q2 non-GAAP operating expenses between $56.0 mln and $59.0 mln

Result Drivers
AUTOMOTIVE GROWTH - Co said Q1 automotive revenue reached a record high due to rapid AI adoption in commercial vehicles
STRONG EDGE AI DEMAND - Co cited strong demand signals for edge AI and optimism about serving increasingly complex AI workloads
NEW PRODUCT ASPs - Co said new products targeting advanced AI workloads command higher average selling prices than current products

Company press release: ID:nGNX9yrtqB

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$100.36 mln
$100.14 mln (11 Analysts)
Q1 Net Income
 
-$18.09 mln
 
Q1 Gross Profit
 
$58.59 mln
 
Q1 Income from Operations
 
-$19.42 mln
 
Q1 Pretax Profit
 
-$17.33 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 8 "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 $89.17, about 1.6% below its May 27 closing price of $90.58
The stock recently traded at 110 times the next 12-month earnings vs. a P/E of 104 three months ago

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.)