Ambarella (NASDAQ:AMBA) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Ambarella (NASDAQ:AMBA) announced its quarterly earnings data on Thursday. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.03, FiscalAI reports. Ambarella had a negative return on equity of 13.02% and a negative net margin of 21.31%.The business had revenue of $100.87 million during the quarter, compared to analysts’ expectations of $100.17 million. During the same quarter in the previous year, the business earned $0.11 earnings per share. The firm’s quarterly revenue was up 20.1% compared to the same quarter last year.

Here are the key takeaways from Ambarella’s conference call:

• Fiscal 2026 revenue grew 37.2% to $390.7M with Q4 at $100.9M (+20.1% YoY), and management guides fiscal 2027 revenue growth of 10%–15%.
• Product and customer momentum across IoT, automotive and robotics — including ramping CV72/CV75 SoCs, a taped-out 4nm CV7 expected to start revenue in Q4 FY27, and broad design wins (including a $13B auto opportunity pipeline).
• Management is building an indirect channel (ISVs/distributors/integrators) and a semi‑custom/custom ASIC business (first 2nm ASIC announced), but these initiatives are early-stage with little near-term revenue expected.
• Strong cash generation and liquidity — ending cash and marketable securities of $312.6M, FY26 free cash flow of $58M, and ~$48M remaining on the share repurchase authorization.
• Margin and operational pressures — FY26 non‑GAAP gross margin declined to 60.7% (from 62.7%), non‑GAAP OpEx rose 12.9%, days of inventory increased to 99, and revenue is highly concentrated with WT Microelectronics representing >70% of Q4 revenue.

Ambarella Stock Down 18.2%

NASDAQ:AMBA traded down $12.89 on Friday, hitting $58.02. The stock had a trading volume of 1,919,480 shares, compared to its average volume of 941,701. Ambarella has a 52-week low of $38.86 and a 52-week high of $96.69. The stock has a market cap of $2.50 billion, a price-to-earnings ratio of -30.79 and a beta of 1.97. The business’s 50-day simple moving average is $68.17 and its two-hundred day simple moving average is $76.01.

Insider Activity at Ambarella

In other Ambarella news, Director Elizabeth M. Schwarting sold 624 shares of Ambarella stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $72.38, for a total transaction of $45,165.12. Following the transaction, the director owned 6,690 shares of the company’s stock, valued at $484,222.20. The trade was a 8.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Feng-Ming Wang sold 4,950 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $71.82, for a total transaction of $355,509.00. Following the completion of the transaction, the chief executive officer owned 783,979 shares of the company’s stock, valued at approximately $56,305,371.78. The trade was a 0.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 27,685 shares of company stock valued at $2,016,598 in the last ninety days. Corporate insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Ambarella

Several institutional investors have recently bought and sold shares of the stock. State Street Corp lifted its stake in Ambarella by 8.9% in the 2nd quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company’s stock worth $122,562,000 after purchasing an additional 151,694 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Ambarella by 4.0% in the second quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company’s stock worth $90,609,000 after purchasing an additional 52,954 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Ambarella by 2,312.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 864,610 shares of the semiconductor company’s stock worth $61,250,000 after buying an additional 828,773 shares in the last quarter. UBS Group AG boosted its stake in Ambarella by 379.3% during the third quarter. UBS Group AG now owns 821,747 shares of the semiconductor company’s stock valued at $67,811,000 after buying an additional 650,306 shares during the last quarter. Finally, Squarepoint Ops LLC boosted its stake in Ambarella by 35.2% during the fourth quarter. Squarepoint Ops LLC now owns 793,745 shares of the semiconductor company’s stock valued at $56,229,000 after buying an additional 206,773 shares during the last quarter. 82.09% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on AMBA. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $80.00 price target on shares of Ambarella in a research report on Wednesday, November 26th. Consumer Edge reissued a “buy” rating on shares of Ambarella in a report on Tuesday. Bank of America boosted their price target on Ambarella from $90.00 to $92.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 26th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ambarella in a research report on Wednesday, January 21st. Finally, Rosenblatt Securities lifted their price objective on Ambarella from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Wednesday, November 26th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $96.00.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q4 results beat expectations: revenue of $100.9M (+20.1% Y/Y) and adjusted EPS $0.13 topped Street estimates, and fiscal 2026 revenue rose ~37% year‑over‑year — evidence demand for Ambarella’s edge‑AI chips remains strong. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management highlighted continued Edge AI momentum and new product launches as drivers of record annual revenue, supporting a multi‑year growth story in high‑performance vision semiconductors. Q4 2026 Earnings Call Highlights
• Positive Sentiment: Corporate/board update: Ambarella appointed veteran semiconductor executive Gregory M. Brya to the board, which may strengthen governance and industry expertise as the business scales. Ambarella Adds Veteran Director
• Neutral Sentiment: Q1 FY2027 revenue guide provided: $97M–$103M (consensus ≈ $96.6M). the range is roughly in line with Street expectations but signals a more moderate near‑term cadence versus the pace of FY2026. Earnings Release / Call Transcript
• Negative Sentiment: Management warned revenue growth will slow this fiscal year — investors often punish companies that flag deceleration even after a beat, which helps explain selling pressure after the print. Ambarella Guides for Revenue Growth to Slow This Fiscal Year
• Negative Sentiment: Market reaction: coverage and headlines noted the stock fell after hours/trading despite the beat — short‑term selling likely driven by guidance tone and mixed operating metrics (operating loss / cash & balance‑sheet nuances flagged by some reports). Ambarella Falls Despite Beating Estimates
• Negative Sentiment: Insider selling and commentary on operating losses were highlighted in some summaries (and QuiverQuant flagged multiple insider sales), which can weigh on sentiment despite top‑line strength. QuiverQuant: Stock Falls on Q4 Earnings

Ambarella Company Profile

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.