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

27 Feb 2026, 02:04 by Danessa Lincoln · The Markets Daily

Ambarella (NASDAQ:AMBA – Get Free Report) issued its earnings results on Thursday. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, topping 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 period in the prior year, the firm posted $0.11 EPS. Ambarella’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 Price Performance

Shares of NASDAQ AMBA traded up $0.61 during mid-day trading on Thursday, hitting $70.90. The company’s stock had a trading volume of 1,430,977 shares, compared to its average volume of 658,051. Ambarella has a one year low of $38.86 and a one year high of $96.69. The company’s fifty day simple moving average is $68.17 and its 200-day simple moving average is $76.01. The stock has a market cap of $3.05 billion, a price-to-earnings ratio of -37.71 and a beta of 1.97.

Insiders Place Their Bets

In other news, CFO John Alexander Young sold 3,791 shares of the firm’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $72.96, for a total value of $276,591.36. Following the transaction, the chief financial officer directly owned 102,738 shares in the company, valued at $7,495,764.48. This trade represents a 3.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Elizabeth M. Schwarting sold 624 shares of Ambarella stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $72.38, for a total value of $45,165.12. Following the sale, the director directly owned 6,690 shares of the company’s stock, valued at approximately $484,222.20. This trade represents a 8.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 27,685 shares of company stock valued at $2,016,598 over the last three months. 5.30% of the stock is owned by insiders.

Institutional Trading of Ambarella

Several hedge funds have recently added to or reduced their stakes in AMBA. Price T Rowe Associates Inc. MD lifted its stake in Ambarella by 2,312.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 864,610 shares of the semiconductor company’s stock valued at $61,250,000 after acquiring an additional 828,773 shares in the last quarter. UBS Group AG raised its holdings in shares of Ambarella by 379.3% in the third quarter. UBS Group AG now owns 821,747 shares of the semiconductor company’s stock valued at $67,811,000 after purchasing an additional 650,306 shares during the last quarter. Squarepoint Ops LLC bought a new stake in shares of Ambarella in the second quarter worth $36,810,000. Balyasny Asset Management L.P. boosted its holdings in Ambarella by 894.7% during the second quarter. Balyasny Asset Management L.P. now owns 459,562 shares of the semiconductor company’s stock worth $30,361,000 after purchasing an additional 413,362 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in Ambarella by 24.4% in the fourth quarter. The Manufacturers Life Insurance Company now owns 1,061,145 shares of the semiconductor company’s stock valued at $75,172,000 after purchasing an additional 207,930 shares in the last quarter. Institutional investors and hedge funds own 82.09% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have issued reports on AMBA shares. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 price objective on shares of Ambarella in a research report on Wednesday, November 26th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Ambarella in a report on Wednesday, January 21st. Summit Insights upgraded shares of Ambarella from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, November 25th. Stifel Nicolaus reissued a “buy” rating and set a $100.00 price objective (up from $90.00) on shares of Ambarella in a report on Wednesday, November 26th. Finally, Rosenblatt Securities boosted their target price on shares of Ambarella from $100.00 to $115.00 and gave the stock a “buy” rating in a research note on Wednesday, November 26th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $96.00.

Read Our Latest Report on Ambarella

Ambarella Company Profile

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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.