Key Highlights

● Revenue was $108.1 million, up 13.2% from $95.5 million a year earlier.

● Non-GAAP Net Income was $8.2 million, or $0.18 per diluted share.

● GAAP results included a one-time $9.0 million Research and Development credit.

● Fiscal third-quarter revenue is guided to $115.0 million to $124.0 million.

A record edge AI quarter

Ambarella, Inc. (NASDAQ:AMBA), an edge artificial intelligence semiconductor company, reported results on 3 September 2026 for its second fiscal quarter of 2027, which ended on 31 July. Its CVflow AI architecture and Oculii radar platform serve automotive, security, consumer, industrial and robotics applications.

Chief executive Fermi Wang said edge AI revenue reached record levels in the quarter, with growth in automotive and Internet of Things markets and strong Demand for the CV75 and CV72 AI system-on-chip products.

Second-quarter results

Revenue was $108.1 million, up 13.2% from $95.5 million a year earlier. GAAP gross Margin was 57.7%, against 58.9%, and non-GAAP gross margin was 59.3%, against 60.5%, so margins slipped by about 1.2 percentage points on both measures even as sales grew.

GAAP net loss was $6.7 million, or $0.15 per diluted share, compared with a loss of $0.47 per share a year earlier. The company noted that GAAP results included a one-time $9.0 million research and development Credit from a terminated development project. Non-GAAP net income was $8.2 million, or $0.18 per diluted share, up from $0.15. That equates to a non-GAAP net margin of about 7.6%, whereas the GAAP loss was about 6.2% of revenue.

Balance sheet and context

Cash and marketable Debt securities totalled $272.3 million, down from $277.8 million a quarter earlier, a small decline of $5.5 million. The previous report, for the first quarter of fiscal 2027 ended 30 April, was published on 28 May 2026.

The one-time credit is worth noting. It improved the GAAP result without being part of recurring operations, which is why the non-GAAP figures are often used to compare underlying trends, although they exclude items that may matter to some readers.

Ambarella guidance and margin points to watch

For the third fiscal quarter, ending 31 October 2026, Ambarella guided to revenue of $115.0 million to $124.0 million, non-GAAP gross margin of 59.0% to 60.0% and non-GAAP operating expenses of $56.5 million to $59.5 million. At the midpoint, revenue of $119.5 million would be about 10.5% above the second quarter. Guidance covers expected figures only.

As an illustration only, combining the midpoints of revenue, gross margin and operating expenses gives non-GAAP Operating Income of roughly $13 million. That figure is derived from the midpoints rather than guided by the company, and it would move materially if any input changed.

Will revenue at the $119.5 million midpoint, about 10.5% above the second quarter, arrive with gross margin inside the guided 59.0% to 60.0%?