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SANTA CLARA, Calif. - Ambarella, Inc. (NASDAQ:AMBA) shares soared 14.10% in after-hours trading Wednesday after the edge AI semiconductor company reported better-than-expected fourth quarter results and provided strong guidance.
The company posted adjusted earnings per share of $0.11 for Q4, beating analyst estimates of a $0.02 loss. Revenue came in at $84 million, surpassing the consensus forecast of $78.03 million and representing a 62.8% increase YoY.
For the first quarter of fiscal 2026, Ambarella expects revenue between $81 million and $87 million, above analyst expectations of $74.22 million.
"We finished fiscal 2025 with strong results and are starting the new year with positive momentum," said Fermi Wang, President & CEO. "We exited the year with more than 70% of our total revenue from edge AI, representing both a quarterly and annual record."
The company’s gross margin on a non-GAAP basis for Q4 was 62.0%, compared to 62.5% in the same period last year.
Ambarella reported that it has cumulatively shipped about 30 million edge AI processors, each integrating its proprietary deep learning AI accelerator.
Looking ahead to fiscal 2026, the company anticipates mid to high teens revenue growth, led by its 5nm products, including the ongoing ramp in the CV5 family and the CV7 family, which generated production revenue for the first time in Q4.
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