Ambarella (NASDAQ:AMBA) Releases Earnings Results, Beats Expectations By $0.03 EPS

Ambarella (NASDAQ:AMBA) announced its quarterly earnings data on Thursday. The semiconductor company reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.03, FiscalAI reports. The firm had revenue of $100.87 million for the quarter, compared to analyst estimates of $100.17 million. Ambarella had a negative return on equity of 12.24% and a negative net margin of 19.42%.Ambarella’s quarterly revenue was up 20.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.11 earnings per share.

Here are the key takeaways from Ambarella’s conference call:

• Fiscal 2026 revenue grew 37.2% to $390.7M with Q4 at $100.9M (+20.1% YoY), and management guides fiscal 2027 revenue growth of 10%–15%.
• Product and customer momentum across IoT, automotive and robotics — including ramping CV72/CV75 SoCs, a taped-out 4nm CV7 expected to start revenue in Q4 FY27, and broad design wins (including a $13B auto opportunity pipeline).
• Management is building an indirect channel (ISVs/distributors/integrators) and a semi?custom/custom ASIC business (first 2nm ASIC announced), but these initiatives are early-stage with little near-term revenue expected.
• Strong cash generation and liquidity — ending cash and marketable securities of $312.6M, FY26 free cash flow of $58M, and ~$48M remaining on the share repurchase authorization.
• Margin and operational pressures — FY26 non?GAAP gross margin declined to 60.7% (from 62.7%), non?GAAP OpEx rose 12.9%, days of inventory increased to 99, and revenue is highly concentrated with WT Microelectronics representing >70% of Q4 revenue.

Ambarella Stock Down 14.9%

Shares of AMBA traded down $10.56 on Friday, hitting $60.34. 4,384,935 shares of the stock traded hands, compared to its average volume of 705,186. Ambarella has a 1 year low of $38.86 and a 1 year high of $96.69. The stock’s 50 day moving average is $67.92 and its two-hundred day moving average is $75.98. The firm has a market capitalization of $2.60 billion, a P/E ratio of -33.90 and a beta of 1.97.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q4 results beat Street expectations: revenue $100.9M (+20.1% YoY) and adjusted EPS $0.13 vs. consensus ~$0.10, showing continued Edge?AI demand. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Fiscal 2026 revenue rose ~37% year?over?year to ~$390.7M, indicating strong multi?quarter top?line momentum from Edge AI products. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Operating cash generation strengthened (cash from ops up, cash & equivalents ~ $191M) and capex declined, providing a cash cushion to fund product transitions. Ambarella Inc. stock falls on Q4 2026 Earnings (QuiverQuant)
• Positive Sentiment: Management targets FY2027 revenue growth of ~10–15% as Edge AI adoption continues, giving investors a multi?year growth framework (though slower than FY2026). Ambarella targets 10%-15% revenue growth in fiscal 2027 (MSN)
• Neutral Sentiment: Q1 FY2027 revenue guidance of $97M–$103M was roughly in line with consensus, which moderates one-off downside risk but also signals a seasonal/near?term slowdown. Ambarella Guides for Revenue Growth to Slow This Fiscal Year (MarketWatch)
• Neutral Sentiment: Board actions: a new FY2027 executive bonus plan was approved and a veteran semiconductor executive was appointed to the board — governance moves investors will parse for incentives and strategic oversight. Ambarella Adopts New FY2027 Executive Bonus Plan (TipRanks) Ambarella Adds Veteran Director (TipRanks)
• Negative Sentiment: Market reaction was negative: shares fell after the report as investors focused on the guidance for slower growth versus the strong FY2026 comps. What’s Going On With Ambarella Stock Friday? (Benzinga)
• Negative Sentiment: The company still reported operating losses and a net loss in the quarter (operating result and diluted loss per share flagged by some summaries), which keeps profitability recovery on investors’ watch lists. Ambarella Inc. stock falls on Q4 2026 Earnings (QuiverQuant)
• Negative Sentiment: Notable insider selling over recent months was flagged by data providers, which may weigh on sentiment despite executive and board changes. Insider activity and institutional moves (QuiverQuant)

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Ambarella in a research report on Wednesday, January 21st. Wall Street Zen downgraded shares of Ambarella from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Consumer Edge restated a “buy” rating on shares of Ambarella in a research report on Tuesday. Bank of America increased their target price on shares of Ambarella from $90.00 to $92.00 and gave the company a “neutral” rating in a report on Wednesday, November 26th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $80.00 price target on shares of Ambarella in a research note on Wednesday, November 26th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $96.00.

Insider Transactions at Ambarella

In other Ambarella news, CEO Feng-Ming Wang sold 4,950 shares of the stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $71.82, for a total transaction of $355,509.00. Following the transaction, the chief executive officer owned 783,979 shares of the company’s stock, valued at $56,305,371.78. This represents a 0.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Chan W. Lee sold 2,406 shares of the firm’s stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $71.82, for a total value of $172,798.92. Following the sale, the insider owned 124,566 shares in the company, valued at $8,946,330.12. This trade represents a 1.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 27,685 shares of company stock worth $2,016,598 in the last three months. 5.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of AMBA. Pacer Advisors Inc. boosted its position in shares of Ambarella by 82.2% in the fourth quarter. Pacer Advisors Inc. now owns 4,231 shares of the semiconductor company’s stock worth $300,000 after acquiring an additional 1,909 shares during the last quarter. Vident Advisory LLC boosted its holdings in shares of Ambarella by 7.2% in the 4th quarter. Vident Advisory LLC now owns 5,265 shares of the semiconductor company’s stock valued at $373,000 after purchasing an additional 353 shares during the last quarter. Mackenzie Financial Corp grew its stake in shares of Ambarella by 28.4% during the 4th quarter. Mackenzie Financial Corp now owns 19,483 shares of the semiconductor company’s stock valued at $1,357,000 after buying an additional 4,314 shares during the period. Empowered Funds LLC acquired a new stake in shares of Ambarella during the 4th quarter worth $92,000. Finally, Sona Asset Management US LLC acquired a new stake in shares of Ambarella during the 4th quarter worth $992,000. Institutional investors and hedge funds own 82.09% of the company’s stock.

Ambarella Company Profile

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.