Ambarella (NASDAQ:AMBA) Releases Earnings Results, Beats Estimates By $0.01 EPS

Ambarella (NASDAQ:AMBA) issued its earnings results on Thursday. The semiconductor company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.01, Briefing.com reports. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The business’s revenue was up 13.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.15 EPS.

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

• Second-quarter revenue reached $108.1 million, up 7.7% sequentially and 13.2% year over year, while non-GAAP EPS was $0.18. Automotive revenue set a record, led by commercial vehicles, and IoT also grew sequentially.
• Ambarella raised its rolling five-year serviceable addressable market outlook to $22.9 billion by fiscal 2032, implying approximately 20% CAGR versus about 18% previously. The increase is primarily attributed to new edge-infrastructure products, including AI accelerators, as well as robotics, enterprise security, and portable video opportunities.
• The company announced partnerships with Capgemini and Macnica to expand indirect sales, system integration, and software ecosystems across enterprise, robotics, industrial, retail, and other edge-AI markets. Ambarella expects meaningful revenue from these channels in two to three years and cited potential revenue of roughly $500 million from each partnership over seven years.
• Ambarella previewed its sampling X7 standalone AI accelerator, designed to work alongside Ambarella, Arm, or x86 host processors with a targeted 4–5 watt power envelope. The company also said its first semi-custom 2-nanometer CVAS SoC is expected to generate initial production revenue in fiscal 2028.
• Memory shortages and rising prices are creating supply-chain uncertainty, particularly for fourth-quarter customer orders, even though Ambarella does not directly bear the memory cost. Management plans to pass its own higher supply-chain costs to customers while maintaining its 59%–62% long-term gross-margin target.

Ambarella Trading Down 5.6%

Shares of AMBA traded down $3.76 on Thursday, reaching $63.38. The company’s stock had a trading volume of 2,673,873 shares, compared to its average volume of 1,270,401. Ambarella has a twelve month low of $48.30 and a twelve month high of $96.69. The stock has a market capitalization of $2.78 billion, a PE ratio of -39.37 and a beta of 2.09. The firm has a fifty day moving average of $74.31 and a 200-day moving average of $68.23.

Analyst Ratings Changes

Several equities analysts have recently weighed in on AMBA shares. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Susquehanna raised their target price on Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, May 29th. Stifel Nicolaus set a $106.00 target price on Ambarella in a research report on Friday, May 29th. Bank of America upped their price target on Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Finally, Summit Insights lowered Ambarella from a “buy” rating to a “hold” rating in a report on Friday, May 29th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $101.86.

Insider Buying and Selling at Ambarella

In other Ambarella news, CFO John Young sold 5,033 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $67.54, for a total transaction of $339,928.82. Following the completion of the sale, the chief financial officer directly owned 112,590 shares of the company’s stock, valued at approximately $7,604,328.60. The trade was a 4.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Chi-Hong Ju sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $88.84, for a total value of $888,400.00. Following the completion of the sale, the vice president directly owned 155,924 shares of the company’s stock, valued at approximately $13,852,288.16. This trade represents a 6.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 58,519 shares of company stock worth $4,595,475. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Ambarella

Several institutional investors have recently bought and sold shares of AMBA. Kemnay Advisory Services Inc. purchased a new position in Ambarella during the 4th quarter worth $71,000. Kestra Advisory Services LLC bought a new stake in shares of Ambarella in the 4th quarter worth $88,000. Advisors Asset Management Inc. raised its holdings in shares of Ambarella by 32.3% in the fourth quarter. Advisors Asset Management Inc. now owns 1,987 shares of the semiconductor company’s stock valued at $141,000 after purchasing an additional 485 shares during the last quarter. Empowered Funds LLC bought a new position in shares of Ambarella during the fourth quarter valued at about $92,000. Finally, State of Wyoming lifted its position in shares of Ambarella by 28.8% during the fourth quarter. State of Wyoming now owns 1,176 shares of the semiconductor company’s stock valued at $83,000 after purchasing an additional 263 shares in the last quarter. Institutional investors own 82.09% of the company’s stock.

Ambarella News Roundup

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 2027 revenue of $108.1 million, up 13.2% year over year, while non-GAAP earnings rose to $0.18 per share from $0.15 a year earlier and exceeded the $0.16 consensus estimate. Ambarella Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management said edge-AI revenue reached a record level, supported by growth in its 5nm CV75 and CV72 AI systems-on-chip. Ambarella also highlighted its new X7 stand-alone AI Accelerator and long-term distribution and implementation agreements with Macnica and Capgemini, which could expand customer reach and future revenue opportunities.
• Positive Sentiment: The company forecast third-quarter revenue of $115 million to $124 million, implying continued sequential growth, and reported that its GAAP net loss narrowed substantially to $6.7 million from $20.0 million a year earlier. Ambarella Fiscal Q2 2027 Financial Results
• Neutral Sentiment: The revenue outlook has a midpoint of $119.5 million, essentially matching the approximately $119.3 million analyst consensus. The company did not provide a comparable EPS forecast, leaving investors with limited evidence of an earnings upside surprise.
• Negative Sentiment: Ambarella remains unprofitable under GAAP, posting a loss of $0.15 per share for the quarter. The 57.7% GAAP gross margin also declined from 58.9% a year earlier, while management expects third-quarter non-GAAP gross margin of 59% to 60%, suggesting continued pressure on profitability.
• Negative Sentiment: Investor sentiment was already cautious ahead of the report because of concerns about slowing growth and Ambarella’s history of sharp post-earnings moves. Reported insider activity also showed 23 open-market sales and no purchases over the past six months, adding to the bearish tone.

About Ambarella

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.