Ambarella Reports Strong Q1 Results, Raises FY26 Outlook Amid AI-Driven Growth

These Analysts Revise Their Forecasts On Ambarella After Q1 Results - Ambarella (NASDAQ:AMBA)

Ambarella, Inc. AMBA reported better-than-expected earnings for its first quarter on Thursday. The company posted quarterly earnings of 7 cents per share which beat the analyst consensus estimate of 3 cents per share. The company reported quarterly sales of $85.87 million which beat the analyst consensus estimate of $85.18 million. "As the established edge AI market leader, we achieved our fourth consecutive quarter of record AI revenue with results in the upper half of our Q1 revenue guidance range. We are increasing our fiscal 2026 revenue growth guidance to a range of 19% to 25%, or approximately $348 million at the mid-point, with the broader guidance range reflecting our consideration of the uncertain geopolitical environment," said Fermi Wang, President & CEO. "We continue to innovate at a rapid pace, and by leveraging our low power and scalable 3rd generation AI silicon and software architecture, our development of a new SoC is efficiently extending our reach into the edge AI infrastructure market." Ambarella said it sees second-quarter sales of $86.00 million to $94.00 million, versus market estimates of $87.07 million. Ambarella shares fell 0.6% to close at $62.00 on Thursday. These analysts made changes to their price targets on Ambarella following earnings announcement. Latest Startup Investment Opportunities: Rad IntelDealMakerMin. Investment$1,000IndustryAIGet Offer Elf LabsDealMakerMin. Investment$974IndustryTechGet Offer Needham analyst Quinn Bolton maintained Ambarella with a Buy and lowered the price target from $110 to $90. Rosenblatt analyst Kevin Cassidy maintained the stock with a Buy and raised the price target from $87 to $95. Considering buying CL stock? Here's what analysts think: Read This Next: Top 3 Materials Stocks That Could Blast Off This Month Photo via Shutterstock AMBAAmbarella Inc$62.00-%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum70.29Growth18.79QualityNot AvailableValue29.41Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Oppenheimer maintains Ambarella stock Perform amid raised FY26 outlook By Investing.com

On Friday, Oppenheimer reiterated its Perform rating for Ambarella (NASDAQ:AMBA), following the company's first-quarter fiscal year 2026 results which surpassed consensus expectations. Ambarella reported a strong start to the year with first-quarter revenue and non-GAAP earnings per share (EPS) coming in at $86 million and $0.07, respectively. These figures exceeded the consensus estimates, which were set at $84 million in revenue and $0.04 EPS. According to InvestingPro data, while the company isn't currently profitable, analysts expect it to turn profitable this fiscal year, with a forecasted EPS of $0.02. The company's management has updated its full-year 2026 guidance, increasing it from mid-to-high teens to a growth range of 19-25% year over year. This upward revision reflects confidence in the potential for Ambarella's edge AI System on Chip (SoC) technology, which is designed for on-premise AI boxes used in enterprise security and other markets. In response to customer demand, Ambarella also announced the development of a new chip within the N1 family, aimed at delivering enhanced performance. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.65 and more cash than debt on its balance sheet. Ambarella's second-quarter fiscal year 2026 revenue guidance is set at a mid-point of $90 million, suggesting an impressive year-over-year growth of approximately 41%. Despite the positive performance and raised guidance, Oppenheimer remains cautious, citing valuation concerns and macroeconomic uncertainties under the new administration as reasons for maintaining a neutral stance on the stock. InvestingPro data supports this cautious view, indicating the stock is trading slightly above its Fair Value, with RSI suggesting overbought conditions. Discover more insights and 8 additional ProTips for AMBA with an InvestingPro subscription. In other recent news, Ambarella has reported its Q1 FY2026 earnings, surpassing analysts' expectations with an EPS of $0.07 compared to the forecasted $0.04. The company also exceeded revenue predictions, reporting $85.9 million against the anticipated $84.01 million, marking a 57.6% year-over-year increase. Ambarella has raised its fiscal year revenue growth guidance to 19-25%, indicating confidence in continued expansion. Needham analysts have adjusted their outlook on Ambarella, reducing the price target from $110.00 to $90.00, but maintained a Buy rating on the stock. Despite the reduced target, Needham's continuing Buy rating suggests confidence in Ambarella's fundamental strength. The company is experiencing a diversification of its business, with security cameras now representing less than half of total revenue, while the automotive sector accounts for approximately 25%. Ambarella's Strategic Addressable Market (SAM) is expanding from endpoint devices to edge infrastructure, with ongoing development of next-generation processors aimed at further penetrating the edge infrastructure market. The company remains focused on AI infrastructure and edge computing, with plans to explore new market segments such as robotics.

Ambarella stock price target cut to $90 by Needham By Investing.com

On Friday, Needham analysts adjusted their outlook on Ambarella (NASDAQ:AMBA), reducing the price target from $110.00 to $90.00, but maintained a Buy rating on the stock. Currently trading at $62, with analyst targets ranging from $49.60 to $110, the stock shows significant potential upside according to Wall Street consensus. Ambarella reported first-quarter results for fiscal year 2026 that surpassed the midpoint of expectations and provided a second-quarter forecast that is above market consensus. InvestingPro analysis indicates the stock is currently overbought, with particularly strong momentum over the past month. The company has updated its revenue growth projections for fiscal year 2026, now expecting an increase of 19%-25% year-over-year, compared to the previous guidance of mid-to-high teens percentage growth. This projection builds on the company's strong revenue growth of 25.8% over the last twelve months. This outlook includes a cautious stance regarding the second half of the fiscal year due to uncertainties related to tariffs. InvestingPro subscribers can access 8 additional key insights about Ambarella's financial health and growth prospects through exclusive ProTips. Ambarella's Strategic Addressable Market (SAM) is witnessing expansion from endpoint devices to edge infrastructure. With a solid financial foundation, including a current ratio of 2.65 and more cash than debt on its balance sheet, the company is well-positioned for this expansion. The management has disclosed ongoing development of next-generation processors aimed at further penetrating the edge infrastructure market. This move signifies Ambarella's efforts to stay at the forefront of technological advancements and market needs. The company is also experiencing a diversification of its business. Security cameras now represent less than half of Ambarella's total revenue. The automotive sector accounts for approximately 25% of the revenue, while the remaining 30%-35% is derived from consumer-facing markets. This shift indicates a strategic broadening of Ambarella's revenue streams beyond its traditional stronghold in security cameras. The revised price target to $90.00 by Needham reflects a more conservative approach in their Discounted Cash Flow (DCF) model. Despite the reduced target, Needham's continuing Buy rating suggests confidence in Ambarella's fundamental strength and future potential in the market. In other recent news, Ambarella Inc . reported its Q1 FY2026 earnings, surpassing analysts' expectations with an earnings per share (EPS) of $0.07, compared to the forecasted $0.04. The company's revenue also exceeded predictions, coming in at $85.9 million against the anticipated $84.01 million. This performance marks a significant year-over-year revenue growth of 57.6%, showcasing the company's robust operational execution. Ambarella has raised its fiscal year revenue growth guidance to a range of 19-25%, reflecting confidence in continued expansion, particularly in AI and edge infrastructure products. The company is focusing on emerging markets, including robotics and automotive, as part of its growth strategy. Analysts from firms like Susquehanna and Stifel have noted the company's strong product cycle and expansion into edge infrastructure, indicating a positive outlook for the future. Despite geopolitical uncertainties, Ambarella maintains a strong position in the market, with its AI-driven strategy contributing significantly to its revenue. The company continues to innovate, with plans to develop new AI SoC products to enhance its edge AI infrastructure roadmap.