Ambarella Soars 19.92% on Strong Q2 Results, Upbeat Guidance

Ambarella's stock surged 19.92% in pre-market trading on August 29, 2025, driven by strong second-quarter results and optimistic guidance for the fiscal year 2026.

Ambarella reported a significant increase in revenue for the second quarter of fiscal 2026, reaching $95.5 million, which exceeded market expectations. This growth was attributed to strong demand across both the automotive and IoT segments.

The company also raised its full-year revenue growth forecast to 31%-35% for fiscal 2026, reflecting balanced contributions from various units. This upbeat guidance has further bolstered investor confidence in the company's future prospects.

Ambarella's earnings for the second quarter of fiscal 2026 also beat estimates, with an EPS of -$0.47, which was better than anticipated. This positive earnings report, combined with the strong revenue growth, has contributed to the stock's impressive performance.

Additionally, Ambarella issued upbeat Q3 revenue guidance of $100–$108 million, which is well above analyst expectations. This forward-looking guidance has further fueled the stock's rally, as investors anticipate continued growth in the coming quarters.