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Earning Preview: Ambarella, Inc. this quarter’s revenue is expected to increase by 28.37%, and institutional views are bullishAbstract
Ambarella, Inc. will report its quarterly results on February 26, 2026 Post Market, with estimates pointing to year-over-year revenue growth and a sharp improvement in adjusted EPS, as investors gauge how product ramps and customer programs affect profitability and execution.Market Forecast
Current estimates for Ambarella, Inc. indicate revenue of 100.18 million (up 28.37% year over year), adjusted EPS of 0.10 (up 730.77% year over year), and EBIT of 3.16 million (up 259.57% year over year), while the company has not provided specific guidance on gross margin or net profit margin for the current quarter. The main business continues to be driven by edge AI inference processors and customer project services, with stable gross margin performance in the previous quarter providing a constructive backdrop for near-term execution. The most promising area centers on next-generation CV7/CVflow platforms and edge AI software stacks integrated into automotive, robotics, and high-performance camera applications, and is embedded within the total revenue estimate of 100.18 million, implying a 28.37% year-over-year increase.Last Quarter Review
In the previous quarter, Ambarella, Inc. delivered revenue of 108.45 million, a gross profit margin of 59.55%, GAAP net profit attributable to the parent company of -15.11 million, a net profit margin of -13.93%, and adjusted EPS of 0.27, rising 145.46% year over year. A notable financial highlight was the improvement in net profit quarter-on-quarter by 24.45%, alongside EBIT of 10.71 million that increased 311.14% year over year on stronger revenue mix and operating leverage. Main business performance benefited from higher unit shipments, an increased proportion of higher average selling price AI inference processors, and expanded nonrecurring engineering (NRE) project service activity, helping lift total revenue by 31.21% year over year.Current Quarter Outlook
Core Edge AI SoCs and Software
Ambarella’s core business in edge AI system-on-chips and software remains the central engine of revenue and earnings in the current quarter. The revenue estimate of 100.18 million, up 28.37% year over year, suggests a constructive demand environment for its AI inference processors, with customers continuing to adopt newer platforms for higher-performing, energy-efficient perception workloads. While the company has not disclosed a specific gross margin forecast, last quarter’s 59.55% margin provides a useful baseline given product mix skew toward higher ASP devices and software value-add, which can support blended margin resilience. On the earnings line, the adjusted EPS estimate of 0.10 implies sharp year-over-year improvement and, together with EBIT of 3.16 million, reflects expectations for operating efficiency gains as product ramps mature and NRE contributions provide incremental margin absorption.A key variable is the balance between volume deployment and pricing, as Ambarella transitions customers onto its newer platform architecture and expands software features to accelerate edge AI application development. The recently launched developer ecosystem initiatives and broader partner enablement should help reduce integration friction and shorten time-to-deploy for customer programs, supporting revenue recognition schedules. Management’s execution on customer timelines, firmware updates, and software optimization for larger perception models will shape both top-line momentum and the degree of operating leverage captured in the quarter.
Inventory dynamics and channel fill are also important in assessing quarter-to-quarter variability, given the pace of new product adoption and customer qualification cycles. However, since last quarter’s revenue composition favored higher ASP products and NRE contributions, this quarter’s trajectory will likely hinge on whether customers sustain that mix as deployments scale. If product mix leans toward platforms with more AI acceleration and integrated software stacks, unit contribution margins can remain favorable even as larger programs move from prototypes to commercial volumes.
Automotive CV7/CVflow Platforms
Automotive-oriented platforms, including Ambarella’s CV7/CVflow, represent a major runway for edge AI compute, and they underpin the most promising growth area for the company this quarter. The opportunity lies in bringing more complex perception workloads to the edge with better performance-per-watt, which can enhance customer deployments across advanced driver assistance and smart camera applications. While segment-level revenue is not separately disclosed, the total company revenue estimate of 100.18 million and the 28.37% year-over-year increase mirror expectations for ongoing automotive and robotics program expansions embedded in customer pipelines.From a delivery perspective, sample-to-production transitions are critical: successful qualification with key customers can unlock multiyear programs where unit economics strengthen as volumes grow and software features expand. As CV7 adoption broadens, Ambarella’s ability to showcase consistent inference speed, lower power draw, and improved image signal processing can drive platform stickiness, even as customers evaluate alternatives. If customers implement larger sensor counts or higher resolution streams, the platform’s integration of specialized AI acceleration and video capabilities can help preserve cost/performance advantages, supporting revenue and EBIT contributions in the quarter.
On the profitability front, software enablement and professional services have the potential to enhance margin profile alongside hardware. Where NRE projects align with future production designs, they can improve visibility into revenue conversion while supporting engineering cost absorption. This quarter’s EBIT estimate of 3.16 million and adjusted EPS estimate of 0.10 imply expectations for not only volume growth, but also better operating efficiency as customer programs scale and software tools accelerate deployment. Close monitoring of program ramps, firmware stability, and portfolio roadmap alignment will be essential to sustaining momentum through the quarter.
Stock Price Drivers for the Quarter
The most impactful near-term stock price drivers are expected to be the pace of CV7/CVflow platform deployments, the mix of higher ASP edge AI processors in the revenue base, and the contribution from NRE projects that support relative margin resilience. Investors will look for confirmation that next-generation platforms are moving from sampling and pilots into broader production volumes, which typically improve revenue scalability and operating leverage. The current quarter’s year-over-year estimates for revenue (up 28.37%), EBIT (up 259.57%), and adjusted EPS (up 730.77%) set a high bar, and any deviation caused by customer timing shifts, program delays, or mix changes could be reflected quickly in price action.Gross margin remains a pivotal metric even without explicit guidance, as last quarter’s 59.55% provided a constructive benchmark and signaled favorable mix. If this quarter’s product and services composition leans toward higher ASP devices and software-rich deployments, margins should remain within a robust range consistent with the company’s historical levels. Conversely, if a larger share of the quarter’s revenue comes from lower ASP products or accelerated services with different margin characteristics, headline profitability could be more sensitive in the near term.
Another key driver is operating efficiency. The sharp improvement implied by adjusted EPS and EBIT estimates suggests expectations for cost discipline, engineering productivity gains, and focused investments aligned with near-term customer deliverables. Ambarella’s ability to manage expenses relative to revenue growth, while continuing to advance its software ecosystem and platform features, will be central to investor assessments of sustainability in earnings improvements. Clear commentary on customer milestones, deployment cadence, and next-phase platform enhancements could reduce uncertainty and support valuation continuity through the reporting window.
Analyst Opinions
Among the views published within the recent period, the balance of opinions is tilted toward a bullish stance, reflecting optimism that near-term revenue growth and adjusted EPS improvements are achievable given product ramps and customer program progress. With available commentary indicating improving traction in automotive and edge AI deployments, the majority of captured perspectives lean positive, yielding a bullish-to-bearish ratio of 1:0 for the covered window. In this context, analysts pointing to platform efficiency, performance-per-watt advantages, and expanding partner enablement expect Ambarella, Inc. to deliver quarter-over-quarter operational strides that support the company-level year-over-year revenue estimate of 100.18 million and the adjusted EPS estimate of 0.10.The optimistic case centers on the company’s ability to convert engineering engagements into revenue, particularly through NRE work that precedes and informs future hardware deployments. That dynamic can smooth the path to production for customers and underpin earnings visibility as platforms stabilize. Supportive commentary also highlights how product mix skew toward higher ASP edge AI processors can sustain margin quality and deliver leverage as unit volumes increase, even if deployment schedules vary by customer.
Bullish voices further underscore the importance of the software layer and developer ecosystem, asserting that faster build-and-deploy cycles can materially improve customer satisfaction and time-to-revenue. The accompanying operational benefits—ranging from tighter firmware integration to simplified reference designs—are cited as reasons the current quarter could show continued improvement in EBIT and adjusted EPS compared with the prior year. Taken together, these views align with the forecast data: year-over-year revenue growth of 28.37%, EBIT up 259.57%, and adjusted EPS up 730.77%, leaving upside conditional on execution against customer timelines and preserving the favorable mix of higher ASP devices and software-enabled solutions.
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