Ambarella Reports 37% Revenue Growth in Fiscal 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy AMBA?
Source: seekingalpha
- Strong Financial Performance: Ambarella reported fiscal 2026 revenue of $390.7 million, reflecting a 37.2% year-over-year increase, primarily driven by new 5-nanometer product cycles and a 50% growth in Edge AI revenue, underscoring the company's robust position in the rapidly evolving AI market.
- New Product Growth Drivers: The third-generation 5-nanometer CV75 and CV72 AI SoCs rapidly gained traction in Q4, contributing a high single-digit percentage to total revenue, and are expected to be a significant source of incremental revenue moving forward, further solidifying the company's market position.
- Strategic Expansion Initiatives: The company is building indirect sales channels, including independent software developers and system integrators, while launching a semi-custom ASIC business, indicating a focus on diversifying revenue streams, although meaningful revenue from this new model is not expected in the short term.
- Optimistic Future Outlook: Management anticipates total revenue growth of 10% to 15% for fiscal 2027, with non-GAAP gross margins projected to remain between 59% and 62%, reflecting confidence in future market opportunities despite challenges from supply chain dynamics and competition.
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Analyst Views on AMBA
Wall Street analysts forecast AMBA stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 70.290
Low
80.00
Averages
96.70
High
115.00
Current: 70.290
Low
80.00
Averages
96.70
High
115.00
About AMBA
Ambarella, Inc. is a developer of low-power system-on-a-chip (SoC) semiconductors and software for edge artificial intelligence (AI) applications. The Company's technologies make electronic systems smarter, enabling them to become partially or fully autonomous with features, such as person detection, object classification, and analytics, in addition to performing complex data analysis in real time, delivering imagery, and preserving vital system resources, such as power and network bandwidth. It specializes in the development of deployable, scalable designs for intelligent electronic systems that utilize high-bandwidth sensors. Its products are used in a variety of human viewing, computer vision and edge AI applications, including a variety of automotive camera systems, video security cameras, mobile and fixed robots, industrial applications, and consumer devices, such as action, drone, and 360-degree cameras.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ambarella Reports 37% Revenue Growth in Fiscal 2026
- Strong Financial Performance: Ambarella reported fiscal 2026 revenue of $390.7 million, reflecting a 37.2% year-over-year increase, primarily driven by new 5-nanometer product cycles and a 50% growth in Edge AI revenue, underscoring the company's robust position in the rapidly evolving AI market.
- New Product Growth Drivers: The third-generation 5-nanometer CV75 and CV72 AI SoCs rapidly gained traction in Q4, contributing a high single-digit percentage to total revenue, and are expected to be a significant source of incremental revenue moving forward, further solidifying the company's market position.
- Strategic Expansion Initiatives: The company is building indirect sales channels, including independent software developers and system integrators, while launching a semi-custom ASIC business, indicating a focus on diversifying revenue streams, although meaningful revenue from this new model is not expected in the short term.
- Optimistic Future Outlook: Management anticipates total revenue growth of 10% to 15% for fiscal 2027, with non-GAAP gross margins projected to remain between 59% and 62%, reflecting confidence in future market opportunities despite challenges from supply chain dynamics and competition.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
Top Bullish IT Stocks Amid AI Concerns
- Capex Growth Leader: Ambarella (AMBA) leads with a year-over-year capital expenditure growth of 94.13%, reflecting its strong investment commitment in AI technology, which enhances market confidence in its future performance.
- Close Competitors: Lumentum Holdings (LITE) and nLIGHT (LASR) follow with capital expenditure growth rates of 74.45% and 60.60%, respectively, indicating their ongoing expansion in photonics and laser technologies, which may boost their market share.
- Other Strong Performers: TTM Technologies (TTMI) and SkyWater Technology (SKYT) achieve growth rates of 58.83% and 57.44%, respectively, showcasing their investment strategies in semiconductors and advanced manufacturing, potentially enhancing their competitive edge in the future.
- Overall Market Trend: Amid AI-related concerns, companies like Vistance Networks (VISN), Semtech (SMTC), and Cipher Mining (CIFR) also demonstrate robust capital expenditure growth, suggesting increasing investor confidence in these tech firms, which may support their future stock performance.
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Ambarella to Exhibit at Embedded World 2026
- Exhibition Theme: Ambarella will showcase its theme, 'The Ambarella Edge: From Agentic to Physical AI,' at Embedded World 2026, taking place from March 10-12 in Nuremberg, Germany, highlighting its AI SoCs, software stack, and developer tools that provide a competitive edge across various AI applications.
- Technology Showcase: The exhibit will feature a scalable AI SoC portfolio that delivers high performance per watt, complemented by a software platform that supports rapid development across diverse edge AI workloads, ensuring high performance in sectors such as robotics, industrial automation, and automotive.
- Developer Zone: Ambarella will establish a Developer Zone (DevZone) to provide hands-on access to software tools, optimized models, and agentic blueprints for developers, partners, and system integrators, aimed at simplifying integration and enhancing deployment efficiency at scale.
- Booth Information: Ambarella's exhibit will be located in Hall 5, Booth 5-355, and guided tours will be available during the event, encouraging attendees to contact Ambarella representatives in advance to schedule visits.
See More
Ambarella Schedules Q4 and FY 2026 Earnings Call
- Earnings Call Announcement: Ambarella will hold its Q4 and FY 2026 earnings conference call on February 26, 2026, at 1:30 p.m. PT, demonstrating the company's commitment to transparency and investor communication.
- Earnings Release Timing: The earnings report will be issued after market close on the same day, ensuring investors have access to the latest financial data prior to the call, thereby increasing market focus on the company's performance.
- Registration Requirements: Interested participants must register online in advance and will receive a verification code to complete the registration process, reflecting the company's emphasis on participant identity and the security of the call.
- Webcast Availability: The conference call will feature a live webcast and replay, ensuring that investors unable to attend in real-time can still access critical information, enhancing the accessibility and transparency of the communication.
See More
Ambarella to Hold Q4 2026 Earnings Call on February 26
- Earnings Call Schedule: Ambarella will hold its fourth quarter and fiscal year 2026 earnings conference call on February 26, 2026, at 1:30 p.m. Pacific Time, demonstrating the company's commitment to market transparency by releasing its earnings after market close.
- Registration Requirement: Participants must register online in advance to ask questions, receiving a verification code to ensure security and confirm participant identity, thereby enhancing the professionalism of the call.
- Webcast Availability: The live conference call will be available via webcast along with a replay, allowing investors who cannot attend in real-time to access the information, thus improving communication efficiency between the company and its investors.
- Wide Product Applications: Ambarella's products are utilized in various fields such as video security and ADAS, showcasing their significance in edge AI and human vision applications, which further solidifies their market position.
See More
Ambarella Reports 37% Revenue Growth in Fiscal 2026
- Strong Financial Performance: Ambarella reported fiscal 2026 revenue of $390.7 million, reflecting a 37.2% year-over-year increase, primarily driven by new 5-nanometer product cycles and a 50% growth in Edge AI revenue, underscoring the company's robust position in the rapidly evolving AI market.
- New Product Growth Drivers: The third-generation 5-nanometer CV75 and CV72 AI SoCs rapidly gained traction in Q4, contributing a high single-digit percentage to total revenue, and are expected to be a significant source of incremental revenue moving forward, further solidifying the company's market position.
- Strategic Expansion Initiatives: The company is building indirect sales channels, including independent software developers and system integrators, while launching a semi-custom ASIC business, indicating a focus on diversifying revenue streams, although meaningful revenue from this new model is not expected in the short term.
- Optimistic Future Outlook: Management anticipates total revenue growth of 10% to 15% for fiscal 2027, with non-GAAP gross margins projected to remain between 59% and 62%, reflecting confidence in future market opportunities despite challenges from supply chain dynamics and competition.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
Top Bullish IT Stocks Amid AI Concerns
- Capex Growth Leader: Ambarella (AMBA) leads with a year-over-year capital expenditure growth of 94.13%, reflecting its strong investment commitment in AI technology, which enhances market confidence in its future performance.
- Close Competitors: Lumentum Holdings (LITE) and nLIGHT (LASR) follow with capital expenditure growth rates of 74.45% and 60.60%, respectively, indicating their ongoing expansion in photonics and laser technologies, which may boost their market share.
- Other Strong Performers: TTM Technologies (TTMI) and SkyWater Technology (SKYT) achieve growth rates of 58.83% and 57.44%, respectively, showcasing their investment strategies in semiconductors and advanced manufacturing, potentially enhancing their competitive edge in the future.
- Overall Market Trend: Amid AI-related concerns, companies like Vistance Networks (VISN), Semtech (SMTC), and Cipher Mining (CIFR) also demonstrate robust capital expenditure growth, suggesting increasing investor confidence in these tech firms, which may support their future stock performance.
See More
Ambarella to Exhibit at Embedded World 2026
- Exhibition Theme: Ambarella will showcase its theme, 'The Ambarella Edge: From Agentic to Physical AI,' at Embedded World 2026, taking place from March 10-12 in Nuremberg, Germany, highlighting its AI SoCs, software stack, and developer tools that provide a competitive edge across various AI applications.
- Technology Showcase: The exhibit will feature a scalable AI SoC portfolio that delivers high performance per watt, complemented by a software platform that supports rapid development across diverse edge AI workloads, ensuring high performance in sectors such as robotics, industrial automation, and automotive.
- Developer Zone: Ambarella will establish a Developer Zone (DevZone) to provide hands-on access to software tools, optimized models, and agentic blueprints for developers, partners, and system integrators, aimed at simplifying integration and enhancing deployment efficiency at scale.
- Booth Information: Ambarella's exhibit will be located in Hall 5, Booth 5-355, and guided tours will be available during the event, encouraging attendees to contact Ambarella representatives in advance to schedule visits.
See More
Ambarella Schedules Q4 and FY 2026 Earnings Call
- Earnings Call Announcement: Ambarella will hold its Q4 and FY 2026 earnings conference call on February 26, 2026, at 1:30 p.m. PT, demonstrating the company's commitment to transparency and investor communication.
- Earnings Release Timing: The earnings report will be issued after market close on the same day, ensuring investors have access to the latest financial data prior to the call, thereby increasing market focus on the company's performance.
- Registration Requirements: Interested participants must register online in advance and will receive a verification code to complete the registration process, reflecting the company's emphasis on participant identity and the security of the call.
- Webcast Availability: The conference call will feature a live webcast and replay, ensuring that investors unable to attend in real-time can still access critical information, enhancing the accessibility and transparency of the communication.
See More
Ambarella to Hold Q4 2026 Earnings Call on February 26
- Earnings Call Schedule: Ambarella will hold its fourth quarter and fiscal year 2026 earnings conference call on February 26, 2026, at 1:30 p.m. Pacific Time, demonstrating the company's commitment to market transparency by releasing its earnings after market close.
- Registration Requirement: Participants must register online in advance to ask questions, receiving a verification code to ensure security and confirm participant identity, thereby enhancing the professionalism of the call.
- Webcast Availability: The live conference call will be available via webcast along with a replay, allowing investors who cannot attend in real-time to access the information, thus improving communication efficiency between the company and its investors.
- Wide Product Applications: Ambarella's products are utilized in various fields such as video security and ADAS, showcasing their significance in edge AI and human vision applications, which further solidifies their market position.
See More
