Ambarella Reports Q2 Earnings with Record Edge AI Revenue
Ambarella (AMBA) reported strong financial performance for the second quarter of fiscal year 2027, achieving revenue of $108.1 million — a 13.2% increase from last year and slightly above guidance. The company highlighted record automotive segment revenues driven by growing adoption in commercial vehicles and robust growth in its IoT business due to enterprise demand outpacing consumer segments. Key developments included the sampling of Ambarella’s X7 AI Accelerator, which targets edge infrastructure with a power-efficient design and low memory requirements for large language models. The company also announced strategic partnerships expected to generate $1 billion in incremental revenue over seven years through agreements with CapGemini and Macnica. Management provided Q3 guidance projecting revenue between $115 million and $124 million, supported by anticipated demand from Physical AI applications. Despite strong top-line growth, non-GAAP gross margin fell below expectations due to product mix shifts. Ambarella also noted rising supply chain costs that it plans to pass on to customers in order to maintain long-term gross margins between 59% and 62%. The company ended the quarter with $272.3 million in cash and marketable securities.
Tickers: $AMBA
Topics: ai_accelerator automotive_growth gross_margin revenue strategic_partnerships