EarningsQ2 2027 Earnings Report
MX:AMBAN Q2 2027 EPS Results
Actual EPS$3.09
Consensus EPS$2.93
Beat/MissBeat by +$0.15
One Year Ago EPS$2.57
MX:AMBAN Q2 2027 Revenue Results
Actual Revenue$1.86B
Expected Revenue$1.85B
Beat/MissBeat by +$6.21M
YoY Revenue Growth+13.21%
Earnings Announcement Details
QuarterQ2 2027
Date09/03/2026
TimeAfter Close
Conference CallThursday, September 3, 2026
MX:AMBAN Upcoming Earnings
Ambarella's next earnings date is estimated for December 1, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:AMBAN Q2 2027 Earnings Call
0:00 / 0:00
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive, supported by record edge AI and automotive revenue, double-digit year-over-year growth, a higher five-year serviceable market forecast, new product ramps, design wins, and major channel partnerships. The company also provided favorable Q3 revenue guidance. Offsetting concerns included memory scarcity, rising supply chain costs, uncertainty around Q4 customer demand, below-midpoint gross margin, negative free cash flow, higher inventory days and competition in the AI accelerator market.Company Guidance
Q2 Revenue and Earnings Above Guidance Midpoint
Fiscal Q2 revenue was $108.1 million, slightly above the midpoint of the prior guidance range of $105 million to $111 million, up 7.7% sequentially and 13.2% year-over-year. Non-GAAP net profit was $8.2 million, or $0.18 per diluted share.
Record Edge AI and Automotive Revenue
The company reported a new record level of edge AI revenue. Automotive revenue also established a new record, with continued strength from commercial vehicle adoption of AI.
Sequential Growth in IoT and Automotive
Ambarella reported sequential growth in both IoT and Automotive. Automotive revenue slightly outpaced IoT growth, while enterprise-driven IoT businesses outperformed consumer-led businesses.
CV75 and CV72 Revenue Ramp
The company said it is in the midst of a very steep revenue ramp with its 5-nanometer CV75 and CV72 AI SoCs.
Expanded Five-Year Serviceable Available Market
The new five-year rolling serviceable available market increased from $8.5 billion in fiscal year 2027 to $22.9 billion in fiscal year 2032, representing a CAGR of about 20%, compared with the prior forecast of about 18%. IoT markets are expected to represent about 70% of the terminal year.
Edge Infrastructure Expansion
Ambarella identified new edge infrastructure products, including additional AI SoCs and a stand-alone AI accelerator product line, as the single most important reason for the upward revision in its serviceable available market.
X7 AI Accelerator Sampling
The new X7 AI accelerator is sampling and is expected to land initial design wins in edge infrastructure applications. It can be bundled with Ambarella SoCs or host processors such as ARM and Intel CPUs, allowing customers to add AI performance without redesigning the board.
X7 Power and Memory Efficiency
The company stated that X7 requires 4 megabytes of memory for running large language models and has a power envelope of between 4 and 5 watts in the current design win. Ambarella said its power efficiency, memory size and cost are helping it penetrate the market.
Capgemini and Macnica Partnerships
Ambarella announced a strategy partnership with Capgemini to help enterprises move from edge AI evaluation to scalable deployment, and a seven-year agreement with Macnica to support Physical AI and edge infrastructure products, including independent software vendor ecosystem development and joint go-to-market activities.
New Indirect Channel Opportunities
The Capgemini and Macnica partnerships are expected to drive a significant amount of incremental revenue over the next seven years. Management cited an expected revenue range of $0.5 billion with each partner.
Semi-Custom Chip Strategy
Ambarella has begun its first semi-custom project, the 2-nanometer CV8 SoC, which is expected to generate first production revenue in fiscal 2028. The company is also in discussions with other companies for additional semi-custom projects.
Broad Customer and Design-Win Activity
The company cited expanding traction across robotics, automotive, security, trail cameras and smart video intercoms. Wins included a CV72-based quadruped robot, an AI-based enterprise video intercom from a major S&P 100 communication equipment company, another Moultrie AI trail-camera win, and wins with Canon, Suprema, IDS and Sepro.
Automotive Design Wins in China
Through Tier 1 customers, Ambarella secured two in-cabin vehicle wins in China: one for driver monitors and another for a more complex camera monitor system used in Audi and Volkswagen vehicles.
Robotics Pipeline Growth
Management said it had added more robotics design wins to the previously discussed pipeline of 15 design wins representing roughly $100 million, along with a higher revenue target. The company also highlighted a CV72-based quadruped robotic dog win during the quarter.
Platform Scale and Software Adoption
Ambarella said more than 50 million edge AI SoCs have been shipped and described its AI SoCs and Cooper Developer Platform as programmable and flexible across a wide variety of AI workloads. Both Capgemini and Macnica are expected to use Cooper.
Q3 Revenue Growth Guidance
The company expects favorable fiscal Q3 seasonality and guided revenue to a range of $115 million to $124 million, or $119.5 million at the midpoint. Growth at the midpoint is expected to be led by Physical AI demand from the IoT market.
Share Repurchase Authorization
Ambarella's Board authorized a new $50 million share repurchase program valid through June 30, 2027. The program does not obligate the company to repurchase any particular amount of shares and may be suspended at the company's discretion.
Support for Customer AI Training Workflows
The company provides platforms for customers to collect data and services to automatically label data. Ambarella said some customers generating 3D maps use its systems for data collection and that it provides automated data-labeling assistance to automotive customers.
MX:AMBAN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed