Ambarella 2026 Q3 Earnings 37.2% Reduction in Net Loss to $15.11M

Ambarella’s fiscal 2026 Q3 earnings report showed a 31.2% year-over-year revenue increase to $108.45 million, outpacing expectations for modest growth. However, the company’s net loss narrowed by 37.2% to $15.11 million, reflecting improved cost management despite ongoing operational challenges.

Revenue

Ambarella’s total revenue surged by 31.2% year-over-year to $108.45 million in Q3 2026, driven by strong demand in its core markets.

Earnings/Net Income

The company reduced its net loss to $15.11 million in Q3 2026, a 37.2% improvement from $24.07 million in the prior-year period. Earnings per share (EPS) improved to -$0.35 from -$0.58, signaling progress in cost optimization. The EPS improvement reflects positive operational strides, though the company remains unprofitable.

Price Action

Ambarella’s stock price experienced mixed performance post-earnings, rising 1.51% on the day but declining 3.83% weekly and 16.67% month-to-date.

Post-Earnings Price Action Review

A strategy of buying AMBA following earnings beats and holding for 30 days underperformed significantly, returning -48.63% compared to the benchmark. The strategy’s underperformance, coupled with a Sharpe ratio of -0.21, highlights heightened risk and volatility in the stock.

CEO Commentary

The CEO emphasized progress in reducing losses and improving operational efficiency, stating, “We are focused on driving sustainable growth while managing costs prudently.” Leadership reiterated confidence in long-term market opportunities but acknowledged near-term challenges in scaling profitability.

Guidance

Ambarella provided no explicit forward-looking guidance for future periods in the Q3 2026 report. The company remains committed to refining its cost structure and capitalizing on demand for its AI and video processing solutions.

Additional News

On December 2, 2025, Leslie Kohn, an officer and director of Ambarella, filed a Form 144 to sell 150,000 restricted shares of AMBA via Morgan Stanley Smith Barney LLC. The sale, permitted within 90 days of filing, has raised investor concerns about potential insider sentiment. While no direct earnings-related implications are stated, the transaction underscores heightened scrutiny of corporate governance and leadership alignment with shareholder interests.