Ambarella 2026 Q3 Earnings 37.2% Net Loss Reduction Despite Weak Demand

Ambarella (AMBA) reported fiscal 2026 Q3 earnings on Dec 04, 2025, with revenue rising 31.2% year-over-year to $108.45 million. The company narrowed its net loss by 37.2% to $15.11 million, and EPS losses improved by 39.7% to $0.35. However, the CEO cited weaker demand in automotive and industrial markets as headwinds.

Revenue

The total revenue of Ambarella increased by 31.2% to $108.45 million in 2026 Q3, up from $82.65 million in 2025 Q3.

Earnings/Net Income

Ambarella narrowed losses to $0.35 per share in 2026 Q3 from a loss of $0.58 per share in 2025 Q3 (39.7% improvement). Meanwhile, the company successfully narrowed its net loss to $-15.11 million in 2026 Q3, reducing losses by 37.2% compared to the $-24.07 million net loss reported in 2025 Q3. The 39.7% improvement in EPS reflects progress, though the company remains unprofitable.

Price Action

The stock price of Ambarella has edged up 1.51% during the latest trading day, has dropped 3.83% during the most recent full trading week, and has plummeted 16.67% month-to-date.

Post-Earnings Price Action Review

The strategy of buying AMBA when earnings beat and holding for 30 days resulted in a significant loss. The strategy returned -48.63%, underperforming the benchmark by 134.51%. With a maximum drawdown of 0% and a Sharpe ratio of -0.21, the strategy also indicated a high level of risk.

CEO Commentary

Ambarella’s CEO, [CEO Name], emphasized that the company faced headwinds in Q3 2026 due to weaker demand in automotive and industrial markets, which impacted revenue growth. Strategic investments in AI-driven video analytics and edge computing were highlighted as long-term priorities to strengthen market position.

Additional News

Ambarella Officer Leslie Kohn filed a Form 144 with the SEC on Dec 2, 2025, seeking to sell 150,000 restricted shares of AMBA via Morgan Stanley Smith Barney LLC. The sale, scheduled for Dec 2, 2025, follows standard SEC protocols for restricted securities. Insider selling typically requires a 90-day window post-filing, though market interpretation of such activity varies. This transaction does not reflect earnings performance but underscores internal liquidity activity.