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

Ambarella (AMBA), ranked by market capitalization, reported fiscal 2026 Q3 earnings on Dec 04th, 2025, showcasing a 31.2% revenue increase to $108.45 million. While the company narrowed losses by 37.2% to a $-15.11 million net loss, challenges in inventory correction and weak demand in key segments tempered optimism. Guidance for Q4 revenue of $110–$115 million suggests cautious alignment with recent performance, though earnings trends remain mixed.

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. While the EPS improvement is a positive sign, the company continues to report a net loss.

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

Frankfurt, CEO, highlighted that Ambarella’s Q3 2026 performance reflected ongoing challenges in inventory correction and weak demand in automotive and industrial segments, though AI vision adoption showed resilience. He emphasized strategic investments in R&D for next-gen AI chips and partnerships to strengthen edge computing leadership. Leadership expressed cautious optimism, noting near-term headwinds but confidence in long-term growth from AI-driven innovation and expanding market share in high-margin applications.

Guidance

Frankfurt stated, “we expect Q4 revenue to range between $110–$115 million, with EPS of ”

Additional News

Ambarella Officer/Dir Kohn filed a Form 144 on Dec 2, 2025, proposing to sell 150,000 restricted shares via Morgan Stanley Smith Barney LLC. The sale, permitted within 90 days of filing, underscores insider activity amid the company’s earnings-driven volatility. While not directly tied to financial performance, the move highlights potential liquidity needs or strategic portfolio adjustments by leadership.