Ambarella | 10-Q: FY2026 Q3 Revenue Beats Estimate at USD 108.45 M

Ambarella Inc. Reports Record Revenue Amid Growth Challenges

Ambarella Inc. reported record Q3 revenue of $108.5 million, a 31.2% increase year-over-year, driven by strong Edge AI product sales. The company raised its fiscal 2026 revenue guidance to 36%-38%. Despite this, Ambarella anticipates a seasonal revenue decline in Q4 and gross margin pressure. The company highlighted new customer wins in various markets and strong free cash flow. Challenges include consumer market volatility and the need for strategic adjustments. Overall, Ambarella remains optimistic about its growth prospects, particularly in the AI segment.

Ambarella shares are trading lower. The company reported Q3 financial results.

BUZZ-Ambarella drops after CFO warns of sequential decline in Q4 revenue

Ambarella's shares dropped 6.6% premarket to $84.95 after the CFO warned of a sequential decline in Q4 revenue, expected between $97 million and $103 million. The decline is attributed to seasonality affecting automotive and IoT sectors. Despite narrowing net loss to $15.1 million and Q3 revenue of $108.45 million surpassing estimates, the stock reacted negatively. The stock had risen 25.06% YTD before this announcement.

Susquehanna Keeps Their Buy Rating on Ambarella (AMBA)

Susquehanna analyst Christopher Rolland reiterated a Buy rating on Ambarella with a $100 price target. Rolland, a 5-star analyst, has a 15.7% average return. Ambarella also received a Buy from Rosenblatt Securities, while KeyBanc maintained a Hold rating. Rolland covers the Technology sector, focusing on stocks like ON Semiconductor and AMD.