Ambarella Reports Strong Q2 Revenue Growth and Profitability

SANTA CLARA, Calif., Sept. 03, 2026 /CourierPR/ -- Ambarella, Inc., a leading edge AI semiconductor company, reported robust financial results for the second quarter of its fiscal year 2027, ending July 31, 2026. The company’s revenue surged to $108.1 million, marking a 13.2% increase from the $95.5 million seen in the same period of the previous fiscal year. Over the first half of fiscal 2027, revenue grew by 14.9% to $208.5 million, compared to $181.4 million in the corresponding period of the previous year.

Gross margins under U.S. GAAP for the second quarter stood at 57.7%, slightly down from 58.9% in the previous year. For the six-month period, the gross margin was 58.0%, a decrease from 59.4% in the same period last year. Despite the margin dip, the company reported a non-GAAP gross margin of 59.3%, an improvement from the 60.5% recorded in the second quarter of the previous fiscal year, and a 59.6% for the first half, compared to 61.2% in the same period last year.

Ambarella’s non-GAAP net income for the second quarter climbed to $8.2 million, or $0.18 per diluted ordinary share, from $6.4 million, or $0.15 per share, in the previous year. For the first half, the company’s non-GAAP net income increased to $13.3 million, or $0.30 per diluted ordinary share, from $9.5 million, or $0.22 per share, in the same period of the previous fiscal year.

Fermi Wang, President and CEO of Ambarella, commented on the financial performance and strategic progress. "Edge AI revenue reached record levels in Q2, driven by balanced sequential growth in the Auto and IoT markets. The strong growth from our 5nm CV75 and CV72 AI SoCs is a testament to our innovation capabilities. We are making significant strides with new go-to-market strategies, including the introduction of our first stand-alone AI Accelerator, X7, and the execution of 7-year agreements with key partners to expand our indirect sales channel."

For the upcoming third quarter of fiscal year 2027, which ends October 31, 2026, Ambarella is projecting revenue between $115.0 million and $124.0 million. The company expects non-GAAP gross margin to range between 59.0% and 60.0%, with non-GAAP operating expenses estimated between $56.5 million and $59.5 million.

Cash reserves remained healthy, with $272.3 million in cash, cash equivalents, and marketable debt securities at the end of the second quarter, down slightly from the $277.8 million at the end of the prior quarter but up from $261.2 million in the same quarter a year ago.

Wang added, "These developments are contributing to an increase in our 5-year serviceable market forecast for edge AI and Physical AI. We are well-positioned to capitalize on the growing demand for edge AI solutions and are confident in our ability to extend our market reach with new products and strategies."

Ambarella plans to host a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time, featuring a discussion of the second quarter’s financial results. The call will be available live and for 30 days after the event on the company’s website.

With an installed base of over 50 million AI SoC units, Ambarella’s products are widely used in various edge AI applications, including physical security, vehicle safety, telematics, and advanced driver assistance systems. The company’s full-stack edge AI platform offers a range of solutions from silicon to software, enabling customers to achieve greater autonomy in their electronic systems.

The financial statements and forward-looking statements in this release include risks and uncertainties that could affect Ambarella’s future performance, such as global economic conditions, government policies, and market demands for AI solutions. The company urges investors to review these factors in its filings with the SEC for a more detailed understanding of the potential risks. Ambarella assumes no obligation to update these forward-looking statements.

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Note: This summary reflects the financial data and key points from the press release without altering the original information. Any further updates or clarifications should be sought directly from Ambarella, Inc. for official statements.