Ambarella shares jump 4% on better-than-expected Q1 results

Published 29/05/2025, 21:18
Ambarella shares jump 4% on better-than-expected Q1 results

SANTA CLARA, Calif. - Ambarella, Inc. (NASDAQ:AMBA) saw its shares surge 4% in after-hours trading on Thursday after the edge AI semiconductor company reported better-than-expected first quarter results and provided upbeat guidance.

For the first quarter ended April 30, Ambarella posted adjusted earnings of $0.07 per share, surpassing analyst estimates of $0.04 per share. Revenue came in at $85.9 million, up 57.6% YoY and above the consensus forecast of $84.01 million.

The company’s strong performance was driven by record AI revenue for the fourth consecutive quarter. Ambarella CEO Fermi Wang stated, "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."

Looking ahead, Ambarella provided second quarter revenue guidance of $86.0 million to $94.0 million, with the midpoint of $90 million exceeding analyst expectations. The company also raised its fiscal 2026 revenue growth outlook to 19-25%, implying approximately $348 million at the midpoint.

"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," Wang added.

Ambarella ended the quarter with $259.4 million in cash and marketable securities, up from $203.3 million a year ago. The company’s board also approved a 12-month extension of its current share repurchase program through June 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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