AMBARELLA Posts 13% Revenue Growth and Guides Q3 Above $115M
The edge AI chipmaker reported $108.1 million in fiscal Q2 revenue, narrowed its GAAP loss to $6.7 million and guided to $115-124 million for Q3.
Ambarella (AMBA) reported second quarter fiscal 2027 results on September 3, 2026, posting revenue of $108.1 million for the period ended July 31, 2026, up 13.2% from $95.5 million a year earlier. The edge AI semiconductor company narrowed its GAAP net loss to $6.7 million, or $0.15 per diluted share, from a loss of $20.0 million, or $0.47 per share, in the same quarter last year. For the third quarter, management guided revenue to $115.0 million to $124.0 million.
On a non-GAAP basis, net income came in at $8.2 million, or $0.18 per diluted share, compared with $6.4 million and $0.15 per share a year ago. For the first six months of the fiscal year, revenue was $208.5 million, up 14.9% from $181.4 million, with a non-GAAP profit of $13.3 million versus $9.5 million.
Margins moved lower year over year. GAAP gross margin was 57.7% against 58.9% in the prior-year quarter, while non-GAAP gross margin fell to 59.3% from 60.5%. The six-month non-GAAP figure slipped to 59.6% from 61.2%. Guidance calls for non-GAAP gross margin of 59.0% to 60.0% in the third quarter, with non-GAAP operating expenses of $56.5 million to $59.5 million.
Operating expenses fell to $70.6 million from $78.2 million, helped by a one-time $9.0 million reduction in GAAP research and development expense tied to the release of a deposit liability after a development project was terminated. Ambarella excluded that credit from its non-GAAP figures, describing it as non-recurring. Loss from operations narrowed to $8.1 million from $22.0 million.
Cash, cash equivalents and marketable debt securities stood at $272.3 million at quarter end, down from $277.8 million in the prior quarter but up from $261.2 million a year ago. Diluted share count was 44.0 million.
CEO Fermi Wang said edge AI revenue reached record levels in Q2, with balanced sequential growth in Auto and IoT markets and very strong growth from the company's 5nm CV75 and CV72 AI SoCs. He pointed to the launch of X7, Ambarella's first stand-alone AI accelerator, and to 7-year agreements with distributor Macnica and engineering firm CapGemini to build an indirect sales channel.
Wang added that those developments are contributing to an increase in the company's five-year serviceable market forecast for edge AI and physical AI. Ambarella says its products have an installed base of more than 50 million AI SoC units across physical security, vehicle safety, telematics, portable video, drones and robotics.
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