Ambarella Inc (AMBA) Q2 2026 Earnings Report

Ambarella reported Q2 fiscal year 2026 revenue of $95.51 million, up 11.2% sequentially and 49.9% year-over-year, led by edge AI applications. Management reiterated a strategic shift toward expanding edge AI breadth across portable video, robotics, and edge infrastructure, with IoT accounting for the majority of revenue and edge AI expected to represent roughly 80% of total revenue this year. The company disclosed a 60.5% non-GAAP gross margin and a non-GAAP net profit of $6.4 million ($0.15 per diluted share) amid ongoing R&D investment, while GAAP net income was -$19.99 million per quarter. Q3 guidance calls for $100–$108 million in revenue (midpoint $104 million) and a full-year 2026 revenue growth target of 31%–35%. Ambarella ended the quarter with a solid balance sheet and substantial cash and investments, supporting continued R&D and product development for its 5-nm AI SoCs and new edge AI infrastructure offerings. Management highlighted wins across robotics drones (Insta360/Arashi), automotive ADAS, and enterprise/security customers, plus a first edge AI infrastructure design win with the N1-655. Investors should monitor execution in auto transitions (L2+/L3), the pace of IoT non-security growth, seasonality in Q3/Q4, and the sustainability of margin expansion as the product mix shifts toward higher ASP edge AI solutions.