Ambarella, Inc. Financial Highlights for Second Quarter Fiscal Year 2026
Ambarella, Inc. (NASDAQ: AMBA), a leader in edge AI semiconductor technology, revealed impressive financial results for its second quarter of fiscal year 2026, concluded on July 31, 2025. These results emphasize the company's robust performance and the increasing demand for advanced AI solutions across various sectors.
Revenue Growth and Key Metrics
During the second quarter, Ambarella reported a remarkable revenue of $95.5 million. This figure reflects a significant increase of 49.9% compared to the $63.7 million achieved in the same quarter of fiscal year 2025. Over the first six months of the fiscal year, revenue reached $181.4 million, marking an impressive 53.5% rise from the previous year’s corresponding period, which recorded $118.2 million.
Profitability and Margins
The company's gross margin under U.S. GAAP for Q2 2026 was 58.9%, a slight decline from 60.8% in the same period last year. For the six months ending July 31, 2025, the gross margin stood at 59.4%, down from 60.8% year-over-year. This margin contraction is attributed to various factors, including increased operational costs associated with expanding product lines.
Net Loss Reduction
Ambarella recorded a net loss of $20.0 million for the second quarter, equating to a loss of $0.47 per diluted share, an improvement from the $34.9 million loss, or $0.85 per share, in Q2 of fiscal 2025. For the six months ended July 31, 2025, the total loss was $44.3 million, indicating a notable reduction from a loss of $72.8 million during the same period last year.
Non-GAAP Performance Overview
On a non-GAAP basis, which excludes certain costs, Ambarella reported a gross margin of 60.5% for Q2 2026 compared to 63.3% in Q2 2025. The non-GAAP net profit was $6.4 million, or $0.15 per diluted share, a substantial turnaround from a $5.5 million loss, or $0.13 per diluted share, in the prior year. For the first half of the fiscal year, the non-GAAP net profit was $9.5 million, contrasting with a loss of $16.0 million in the same timeframe the previous year.
Guidance and Future Outlook
Looking ahead, Ambarella has set ambitious targets for the third quarter of fiscal year 2026, projecting revenue between $100.0 million and $108.0 million. The expected non-GAAP gross margin is anticipated to be in the range of 60.0% to 61.5%, while the operating expenses are forecasted to lie between $54.0 million and $57.0 million. This projection demonstrates Ambarella's confidence in its growth within the edge AI market.
Market Position and Innovations
Ambarella's strong performance in the edge AI sector is fueled by the constant evolution of its products. The company is actively pursuing growth opportunities with higher end 5nm AI system-on-chips (SoCs) catering to diverse applications, including AI-driven video and robotics. Currently, over 36 million edge AI processors have been shipped, solidifying Ambarella's status as a key player in this fast-growing industry.
Fermi Wang, President and CEO, expressed enthusiasm regarding the ongoing expansion. He stated, "Our commitment remains firmly focused on meeting our customers' needs, especially in areas like automotive and edge infrastructure, which are projected to yield significant opportunities in the upcoming years." He further noted expectations for production shipments from innovative products, including their first robotic aerial drone, anticipated for the end of fiscal year 2026.
Quarterly Conference Call
Ambarella will host a conference call to discuss the second quarter results today with top executives. The call will detail the company’s strategic roadmap and financial outlook, providing stakeholders with insights into the company’s performance and future direction.
About Ambarella
Ambarella specializes in advanced semiconductor solutions tailored for various applications in edge AI and human vision technology. From video security to automotive applications, the company’s low-power systems-on-chips (SoCs) are at the forefront of enabling intelligent perception, image processing, and advanced analytics, supporting the accelerating shift toward AI-driven solutions.
Frequently Asked Questions
What were Ambarella's total revenues for Q2 2026?
Ambarella's total revenues for Q2 2026 reached $95.5 million, a 49.9% increase from the same period last year.
How did the company's net income change in Q2 2026?
In Q2 2026, Ambarella reported a net loss of $20.0 million, which is an improvement from a net loss of $34.9 million in Q2 2025.
What is the projected revenue range for Q3 2026?
Ambarella anticipates revenue between $100.0 million and $108.0 million for Q3 2026.
How many edge AI processors has Ambarella shipped to date?
To date, Ambarella has shipped over 36 million edge AI processors.
What industries are benefiting from Ambarella's technology?
Ambarella's semiconductor solutions are used across industries such as automotive, robotics, video security, and advanced driver assistance systems (ADAS).
