Ambarella 2026 Q3 Earnings Narrowed Losses and 31.2% Revenue Growth

Ambarella (AMBA) reported fiscal 2026 Q3 earnings on Dec 4, 2025, showcasing a 31.2% revenue increase to $108.45 million and a 39.7% reduction in per-share losses. The results highlight progress in cost management and market expansion, though challenges persist in achieving profitability.

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 narrowing of losses reflects improved operational efficiency despite ongoing market challenges.

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

Mr. Fermi Wang, CEO of Ambarella, highlighted the company’s progress in driving revenue growth while managing costs effectively. “Our 31.2% revenue increase underscores strong demand for our AI and automotive solutions,” he noted. However, he acknowledged ongoing supply chain constraints and fluctuating demand in key markets. Strategic priorities include accelerating R&D in edge computing and expanding partnerships in the automotive sector. The tone was cautiously optimistic, balancing near-term challenges with long-term growth opportunities.

Guidance

Ambarella expects Q4 2026 revenue of $115–$120 million, with adjusted EPS guidance of -$0.40 to -$0.45. The company emphasized maintaining disciplined cost structures while investing in high-potential markets.

Additional News

On Dec 2, 2025, Leslie Kohn, an Officer and Director of Ambarella, filed a Form 144 to sell 150,000 restricted shares through Morgan Stanley. The sale, permitted within 90 days, aligns with standard insider trading protocols. Ambarella reiterated its commitment to transparency in shareholder transactions. No dividend or buyback announcements were made, and no C-level executive changes were disclosed within the three-week period preceding the earnings report.