Ambarella 2026 Q2 Earnings Narrowed Losses Signal Progress

Ambarella (AMBA) reported its fiscal 2026 Q2 earnings on September 3, 2025, showing strong revenue growth and significantly reduced losses compared to the prior year. The company delivered better-than-expected financial results, with revenue rising sharply and losses narrowing by nearly half. Additionally, Ambarella provided optimistic guidance for the upcoming quarter, reflecting confidence in its product roadmap and operational efficiency.

Revenue
Ambarella’s total revenue surged by 49.9% year-over-year to $95.51 million in Q2 2026, up from $63.72 million in the same period a year earlier. This robust increase underscores the company’s growing traction in its core markets, particularly in edge AI applications.

Earnings/Net Income
The company made notable progress in improving profitability, narrowing its per-share loss to $0.47 in Q2 2026 from $0.85 in Q2 2025, representing a 44.7% improvement. On an absolute basis, Ambarella reduced its net loss to $-20 million, a 42.7% improvement over the $-34.89 million loss in the prior year period. These results reflect effective cost management and improved operational efficiency.

Price Action
Despite a 1.80% decline in stock price during the latest trading day, Ambarella’s shares posted a 12.46% gain over the past full trading week and a 24.44% increase month-to-date. The positive investor sentiment suggests confidence in the company’s long-term growth prospects and its edge AI expansion.

Post-Earnings Price Action Review
Following the earnings report, Ambarella’s management highlighted strong fiscal 2025 performance, with over 70% of its revenue attributed to edge AI. The company shipped approximately 30 million edge AI processors, demonstrating robust demand for its products. CEO Fermi Wang expressed optimism for mid to high teens revenue growth in fiscal 2026, driven by the ramp-up of 5nm products like the CV5 and CV7 families. The company remains focused on efficient operations to drive positive operating leverage.

CEO Commentary
Fermi Wang, President & CEO, emphasized the company’s strong fiscal 2025 results and the increasing adoption of edge AI technologies. He noted that the shipment of about 30 million edge AI processors highlighted the growing demand for Ambarella’s products. Wang expressed confidence in the company’s ability to achieve mid to high teens revenue growth in fiscal 2026, driven by the production ramp of 5nm products like the CV5 and CV7 families. The CEO also stressed the importance of efficient operations in driving positive operating leverage and long-term profitability.

Guidance
For Q1 2026, Ambarella expects revenue to be between $81.0 million and $87.0 million. The company also guided for a non-GAAP gross margin in the range of 61.0% to 62.5% and non-GAAP operating expenses between $50.0 million and $53.0 million.

Additional News
In Nigeria, recent news highlights included a significant rise in non-oil revenue, which increased by 40% to N20.6 trillion as of late August 2025. Political tensions also flared between the APC and opposition parties over the federal government’s revenue growth claims. Meanwhile, a Lagos masquerade festival clash resulted in three fatalities, drawing attention to public safety concerns. Additionally, the EFCC arrested a CEO for a failed N2 billion investment scheme, underscoring continued anti-corruption efforts in the region.