Ambarella 2026 Q3 Earnings 37.2% Reduced Net Loss Amid AI Demand

Ambarella (AMBA) reported fiscal 2026 Q3 earnings on Dec 04, 2025, showcasing a 31.2% revenue increase to $108.45 million and a 37.2% reduction in net losses to $-15.11 million. The results align with management’s focus on AI-driven edge computing and automotive markets.

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 narrowed losses reflect improved operational efficiency and cost management.

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, Dr. Fermi Wang, highlighted that the company’s Q3 performance was driven by strong demand in AI-enabled edge computing and automotive applications, though supply chain constraints and inventory management challenges impacted growth. Strategic priorities include accelerating R&D investments in next-generation AI chips and expanding partnerships in autonomous vehicle ecosystems. The CEO expressed cautious optimism, emphasizing confidence in long-term opportunities.

Additional News

On Dec 2, 2025, Leslie Kohn, an officer and director of Ambarella, filed a Form 144 with the SEC to sell 150,000 restricted shares through Morgan Stanley Smith Barney LLC. The sale, permitted within 90 days of filing, reflects standard insider trading protocols for restricted securities. While such activity is routine, it may signal short-term liquidity needs or confidence in the company’s valuation. The filing occurred just one day before the earnings report, raising questions about potential market timing. However, no direct correlation between the sale and Q3 results was disclosed.