Ambarella, Inc. Announces First Quarter Fiscal Year 2027 Financial Results
Rhea-AI Summary
Ambarella (NASDAQ: AMBA) reported Q1 FY2027 revenue of $100.4 million, up 16.9% year over year. GAAP gross margin was 58.4% and non-GAAP 59.9%.
GAAP net loss was $18.1 million (−$0.41 per share), while non-GAAP net income was $5.0 million ($0.11 per share). Q2 FY2027 guidance targets revenue of $105–$111 million. Cash and investments were $277.8 million. The board also authorized a new $50 million share repurchase program and the company bought 47,798 shares for $2.4 million in Q1.
Positive
- Q1 FY2027 revenue $100.4M, up 16.9% year over year
- Q1 GAAP net loss improved to $18.1M from $24.3M year over year
- Q1 non-GAAP net income $5.0M vs. $3.0M a year earlier
- Q2 FY2027 revenue guidance of $105–$111M
- Q1 cash, equivalents and marketable securities $277.8M vs. $259.4M a year ago
- New $50.0M share repurchase authorization through June 30, 2027
- Q1 repurchase of 47,798 shares for approximately $2.4M
Negative
- Q1 GAAP net loss of $18.1M (−$0.41 per diluted share)
- Q1 GAAP gross margin fell to 58.4% from 60.0% year over year
- Q1 non-GAAP gross margin declined to 59.9% from 62.0% year over year
- Cash, equivalents and marketable securities $277.8M vs. $312.6M in prior quarter
News Market Reaction – AMBA
In the May 29 session, AMBA declined 21.41%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.3% during that session. Argus tracked a trough of -17.4% from its starting point during tracking. Our momentum scanner triggered 78 alerts that day, indicating high trading interest and price volatility. Trading volume was exceptionally heavy at 5.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4/FY26 earnings | Positive | -14.9% | Q4 and FY2026 revenue growth with non-GAAP profitability and FY2027 guidance. |
| Nov 25 | Q3 FY26 earnings | Positive | -18.8% | Q3 FY2026 revenue up 31.2% with positive non-GAAP earnings and Q4 guidance. |
| Aug 28 | Q2 FY26 earnings | Positive | +16.8% | Q2 FY2026 revenue up 49.9% and return to non-GAAP profitability with raised outlook. |
| May 29 | Q1 FY26 earnings | Positive | -15.1% | Q1 FY2026 revenue growth, first AI records, and higher FY2026 guidance. |
| Feb 26 | Q4/FY25 earnings | Positive | -17.1% | Q4 and FY2025 double‑digit revenue growth and strong edge AI contribution. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often been followed by negative price reactions, even when revenue growth and non-GAAP profitability metrics were strong.
Over the past year, Ambarella’s earnings reports have highlighted strong revenue growth and increasing edge AI exposure, yet the stock frequently sold off afterward. Prior earnings on Feb 26, 2026, Nov 25, 2025, May 29, 2025, and Feb 26, 2025 all showed solid top-line growth and improving non‑GAAP profitability but produced next‑day moves of -14.89%, -18.78%, -15.1%, and -17.13%. The current Q1 FY2027 report continues the pattern of revenue growth and non‑GAAP profits against a cautious market response.
Key Terms
gaap financial
non-gaap financial
stock-based compensation financial
edge ai technical
asp financial
soc technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
SANTA CLARA, Calif., May 28, 2026 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced first quarter fiscal 2027 financial results for the period ended April 30, 2026.
- Revenue for the first quarter of fiscal 2027 was
$100.4 million , up16.9% from$85.9 million in the same period in fiscal 2026. - Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2027 was
58.4% , compared with60.0% for the same period in fiscal 2026. - GAAP net loss for the first quarter of fiscal 2027 was
$18.1 million , or loss per diluted ordinary share of$0.41 , compared with a GAAP net loss of$24.3 million , or loss per diluted ordinary share of$0.58 , for the same period in fiscal 2026.
Financial results on a non-GAAP basis for the first quarter of fiscal 2027 are as follows:
- Gross margin on a non-GAAP basis for the first quarter of fiscal 2027 was
59.9% , compared with62.0% for the same period in fiscal 2026. - Non-GAAP net profit for the first quarter of fiscal 2027 was
$5.0 million , or earnings per diluted ordinary share of$0.11 . This compares with non-GAAP net profit of$3.0 million , or earnings per diluted ordinary share of$0.07 , for the same period in fiscal 2026.
Based on information available as of today, Ambarella is offering the following guidance for the second quarter of fiscal year 2027, ending July 31, 2026:
- Revenue is expected to be between
$105.0 million and$111.0 million . - Gross margin on a non-GAAP basis is expected to be between
59.0% and60.5% . - Non-GAAP operating expenses are expected to be between
$56.0 million and$59.0 million .
Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.
Total cash, cash equivalents and marketable debt securities on hand at the end of the first quarter of fiscal 2027 was
“In Q1 we delivered on our key financial guidance while extending our edge AI platform leadership. Automotive revenue achieved a new all-time record due to rapid penetration of AI into commercial vehicles. Demand signals for edge AI remain very strong, and I am optimistic in our ability to serve the market, in particular as AI workloads become more complex. We have a number of new products targeting more advanced AI workloads, all of which command average selling prices (“ASP”) well in-excess of our current ASP.” said Fermi Wang, President & CEO.
“Our edge SoCs integrate all the AI accelerated computing functions (perception, fusion, AI accelerator, CPU and other system functions) together with our algorithms and software into a single SoC,” Dr. Wang added. “Customers are increasingly recognizing our unique capabilities and are requesting broader and deeper relationships, facilitating our development of new markets like edge infrastructure and robotics, while an indirect sales ecosystem can bring us more scale.”
Stock Repurchase
In the first quarter of fiscal year 2027, the company repurchased a total of 47,798 shares for total consideration of approximately
Quarterly Conference Call
Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the first quarter of fiscal year 2027 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call.
About Ambarella
With an installed base of more than 46 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. For more information, please visit www.ambarella.com.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” “should,” or similar expressions, including the guidance for the second quarter of fiscal year 2027 ending July 31, 2026, and the comments of our CEO relating to demand for edge AI solutions, our ability to serve the edge AI market as it evolves, our ability to command higher prices for our new products, our ability to establish deeper relationships with our customers, our ability to further penetrate the edge infrastructure and robotics markets, and our ability to successfully build an indirect sales channel. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.
The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our customers’ ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets and applications, such as edge infrastructure; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.
Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2026 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at www.ambarella.com or the SEC's web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2027 ended April 30, 2026 could differ from the preliminary results announced in this press release.
Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law.
Non-GAAP Financial Measures
The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.
With respect to its financial results for the first quarter of fiscal year 2027, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the second quarter of fiscal year 2027, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
| AMBARELLA, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except share and per share data) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended April 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 100,357 | $ | 85,872 | ||||
| Cost of revenue | 41,768 | 34,336 | ||||||
| Gross profit | 58,589 | 51,536 | ||||||
| Operating expenses: | ||||||||
| Research and development | 58,140 | 58,819 | ||||||
| Selling, general and administrative | 19,865 | 18,575 | ||||||
| Total operating expenses | 78,005 | 77,394 | ||||||
| Loss from operations | (19,416 | ) | (25,858 | ) | ||||
| Other income, net | 2,083 | 2,175 | ||||||
| Loss before income taxes | (17,333 | ) | (23,683 | ) | ||||
| Provision for income taxes | 760 | 645 | ||||||
| Net loss | $ | (18,093 | ) | $ | (24,328 | ) | ||
| Net loss per share attributable to ordinary shareholders: | ||||||||
| Basic | $ | (0.41 | ) | $ | (0.58 | ) | ||
| Diluted | $ | (0.41 | ) | $ | (0.58 | ) | ||
| Weighted-average shares used to compute net loss per share | ||||||||
| attributable to ordinary shareholders: | ||||||||
| Basic | 43,605,282 | 42,219,972 | ||||||
| Diluted | 43,605,282 | 42,219,972 | ||||||
The following tables present details of stock-based compensation and acquisition-related costs included in each functional line item in the condensed consolidated statements of operations above:
| Three Months Ended April 30, | |||||
| 2026 | 2025 | ||||
| (unaudited, in thousands) | |||||
| Stock-based compensation: | |||||
| Cost of revenue | $ | 783 | $ | 951 | |
| Research and development | 13,714 | 17,585 | |||
| Selling, general and administrative | 7,396 | 7,594 | |||
| Total stock-based compensation | $ | 21,893 | $ | 26,130 | |
| Three Months Ended April 30, | |||||
| 2026 | 2025 | ||||
| (unaudited, in thousands) | |||||
| Acquisition-related costs: | |||||
| Cost of revenue | $ | 757 | $ | 757 | |
| Research and development | — | — | |||
| Selling, general and administrative | 456 | 456 | |||
| Total acquisition-related costs | $ | 1,213 | $ | 1,213 | |
The difference between GAAP and non-GAAP gross margin was
| AMBARELLA, INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE | |||||||
| (in thousands, except share and per share data) | |||||||
| Three Months Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| (unaudited) | |||||||
| GAAP net loss | $ | (18,093 | ) | $ | (24,328 | ) | |
| Non-GAAP adjustments: | |||||||
| Stock-based compensation expense | 21,893 | 26,130 | |||||
| Acquisition-related costs | 1,213 | 1,213 | |||||
| Income tax effect | 20 | 14 | |||||
| Non-GAAP net income | $ | 5,033 | $ | 3,029 | |||
| GAAP - diluted weighted average shares | 43,605,282 | 42,219,972 | |||||
| Non-GAAP - diluted weighted average shares | 43,899,823 | 42,451,235 | |||||
| GAAP - diluted net loss per share | $ | (0.41 | ) | $ | (0.58 | ) | |
| Non-GAAP adjustments: | |||||||
| Stock-based compensation expense | 0.50 | 0.62 | |||||
| Acquisition-related costs | 0.03 | 0.03 | |||||
| Income tax effect | — | — | |||||
| Effect of Non-GAAP - diluted weighted average shares | (0.01 | ) | — | ||||
| Non-GAAP - diluted net income per share | $ | 0.11 | $ | 0.07 | |||
| AMBARELLA, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (unaudited, in thousands) | |||||||
| April 30, | January 31, | ||||||
| 2026 | 2026 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 114,443 | $ | 191,019 | |||
| Marketable debt securities | 163,357 | 121,552 | |||||
| Accounts receivable, net | 39,175 | 39,180 | |||||
| Inventories | 80,355 | 52,246 | |||||
| Restricted cash | 442 | 442 | |||||
| Prepaid expenses and other current assets | 7,417 | 5,836 | |||||
| Total current assets | 405,189 | 410,275 | |||||
| Property and equipment, net | 12,594 | 11,553 | |||||
| Intangible assets, net | 59,024 | 58,046 | |||||
| Operating lease right-of-use assets, net | 11,510 | 12,118 | |||||
| Goodwill | 303,625 | 303,625 | |||||
| Other non-current assets | 2,896 | 2,983 | |||||
| Total assets | $ | 794,838 | $ | 798,600 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 53,278 | 54,029 | |||||
| Accrued and other current liabilities | 92,519 | 97,964 | |||||
| Operating lease liabilities, current | 2,359 | 2,027 | |||||
| Income taxes payable | 1,768 | 1,531 | |||||
| Deferred revenue, current | 17,036 | 22,393 | |||||
| Total current liabilities | 166,960 | 177,944 | |||||
| Operating lease liabilities, non-current | 10,912 | 11,408 | |||||
| Other long-term liabilities | 11,148 | 14,459 | |||||
| Total liabilities | 189,020 | 203,811 | |||||
| Shareholders' equity: | |||||||
| Preference shares | — | — | |||||
| Ordinary shares | 20 | 19 | |||||
| Additional paid-in capital | 951,980 | 922,119 | |||||
| Accumulated other comprehensive income (loss) | (167 | ) | 573 | ||||
| Accumulated deficit | (346,015 | ) | (327,922 | ) | |||
| Total shareholders’ equity | 605,818 | 594,789 | |||||
| Total liabilities and shareholders' equity | $ | 794,838 | $ | 798,600 | |||
Contact:
Louis Gerhardy
408.636.2310
lgerhardy@ambarella.com
