Ambarella's second quarter fiscal 2027 revenue and EPS beat estimates on record edge AI demand

Ambarella reported second quarter fiscal 2027 revenue of $108.1 million, marginally exceeding the $107.8 million analyst estimate. Non-GAAP earnings per share of $0.18 beat expectations of $0.17, supported by record edge AI revenue levels. While non-GAAP gross margin contracted to 59.3%, falling slightly short of the 59.75% estimate, the company provided strong third quarter revenue guidance with a midpoint of $119.5 million.

Key Highlights

• Revenue increased 13.2% year-over-year to $108.1 million, driven by balanced sequential growth in Automotive and IoT markets.
• GAAP net loss narrowed to $6.7 million, or $0.15 per share, aided by a one-time $9.0 million research and development credit related to a project termination.
• Management cited strong demand for 5nm CV75 and CV72 AI SoCs and announced new seven-year indirect sales channel agreements with Macnica and CapGemini.
• Total liquidity remained robust with $272.3 million in cash, cash equivalents, and marketable debt securities at quarter end.