Ambarella Inc. (AMBA) reported its fiscal 2027 second-quarter results after Thursday's closing bell, and while the numbers topped analyst expectations, the market wasn't cheering. Here's a closer look at what came out of the report.
Ambarella Beats Estimates but Investors Aren't Impressed
MarketDash
A closer look at Ambarella's fiscal Q2 results and why the stock is sliding despite the beat.
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The Numbers
The company posted adjusted earnings of 18 cents per share, edging past the 17-cent consensus. Revenue landed at $108.13 million, also slightly above the $107.75 million analysts were looking for.
But there's a wrinkle: non-GAAP gross margin for the quarter came in at 59.3%, down from 60.5% in the same period last year. For the first six months of fiscal 2027, that margin stands at 59.6%, versus 61.2% in the prior year. That dip might be part of the reason investors aren't throwing a party.
What the CEO Said
CEO Fermi Wang struck an upbeat tone, noting, "Our edge AI revenue reached record levels in Q2, with balanced sequential growth in Auto and IoT markets with very strong growth from our 5nm CV75 and CV72 AI SoCs." He added, "We are making significant progress with our strategic priorities to extend our market reach with new higher value products and the implementation of new go-to-market strategies."
Stock Reaction
Despite the beat, shares of Ambarella were down 5.05% to $63.38 in extended trading on Thursday, according to data from MarketDash. Investors may be focusing on the margin compression or simply expecting more from a company that's been riding the AI wave.
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