Ambarella (AMBA) stock surged 5.34% in trading on Thursday following the release of its impressive first-quarter fiscal year 2026 financial results and an optimistic outlook. The edge AI semiconductor company outperformed market expectations, demonstrating strong growth and improved financial performance.

For the quarter ended April 30, Ambarella reported adjusted earnings of $0.07 per share, significantly beating the analyst consensus estimate of $0.03. This represents a substantial improvement from the loss of $0.26 per share in the same quarter last year. Revenue also exceeded expectations, reaching $85.87 million, up 57.6% year-over-year and surpassing the analyst estimate of $83.65 million.

Adding to the positive sentiment, Ambarella provided an upbeat forecast for the second quarter, projecting revenue between $86 million and $94 million, which is higher than the analyst consensus of $84.64 million. Furthermore, the company raised its full-year sales outlook, now expecting revenue growth of 19% to 25% to approximately $348 million, up from its previous guidance of mid to high teens growth. CEO Fermi Wang attributed the broader guidance range to consideration of the uncertain geopolitical environment. The company's strong performance and optimistic outlook have clearly resonated with investors, driving the stock's significant uptick.