What's Going On With Ambarella Stock Friday?

Ambarella, Inc. (NASDAQ:AMBA) shares are trading lower premarket on Friday after the company reported fourth-quarter results.

Earnings Snapshot

Revenue rose 20.1% year over year (Y/Y) to $100.9 million, which beat the consensus estimate of $100.2 million.

Adjusted EPS of 13 cents surpassed the consensus estimate of 10 cents.

Adjusted gross margin contracted to 59.8% from 62.0% a year ago quarter.

In the quarter, the company did not repurchase shares and had $48.0 million worth of stock available for repurchase under the repurchase program.

Cash, cash equivalents, and marketable debt securities on hand stood at $312.6 million at the end of the quarter.

For the fiscal year ended January 31, 2026, revenue rose 37.2% year over year to $390.7 million from $284.9 million.

Adjusted gross margin for fiscal year 2026 fell to 60.7%, down from 62.7% the previous year.

Fermi Wang, President & CEO, said, “Our F2026 revenue grew 37%, achieving an annual revenue record. Edge AI SoCs represented 80% of revenue, all of which is generated from a broad range of physical AI applications leveraging our deep learning AI accelerator. We expect total revenue growth of 10% to 15% in F2027.”

“We continue to build upon our edge AI leadership as we execute on new products, enhance our Cooper Development Platform, build an indirect sales channel, and establish a semi-custom/custom ASIC model.”

”Our edge AI leadership stands out, with approximately $1 billion in cumulative edge AI revenue, a portfolio of 12 AI SoCs covering a wide variety of edge AI use cases, support for up to 34 billion parameter models, more than 370 unique customer AI projects in production, and at least 200 different model architectures implemented successfully on our AI SoCs.”

Outlook

Ambarella expects first-quarter sales of $97 million-$103 million (versus consensus of $97.088 million) and adjusted gross margin of 59.0%-60.5%.

AMBA Price Action

Ambarella shares were down 10.44% at $63.50 during premarket trading on Friday. The stock has climbed 12.84% over the past year.

Ambarella has seen its stock fluctuate significantly within a 52-week range of $38.86 to $96.69, reflecting the volatile nature of technology stocks amid evolving demand for AI and video processing solutions.

Historical trends indicate that the stock has been closer to its high than its low, signaling potential investor optimism about its future prospects.

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