By Dean Seal
Ambarella recorded a smaller loss in the fiscal first quarter as demand for edge AI processors kept revenue climbing.
The semiconductor designer posted a loss of $18.1 million, or 41 cents a share, for the quarter ended April 30, compared with $24.3 million, or 58 cents a share, in the same period a year earlier.
Stripping out stock-based compensation, acquisition costs and other one-time items, adjusted earnings were 11 cents a share. That's a penny higher than analysts polled by FactSet had been expecting.
Revenue climbed 17% to $100.4 million, dead on with analyst estimates. The top line was driven up by record revenue from Ambarella's automotive division, fueled by rising AI integration into commercial vehicles.
"Demand signals for edge AI remain very strong," Chief Executive Fermi Wang said.
The company's gross margin decreased slightly from the year-earlier quarter as the cost of revenue grew at a faster rate than the top line. Total operating costs rose just 2% though, helping Ambarella narrow its loss.
For the fiscal second quarter that ends July 31, the company expects $105 million to $111 million in revenue, in line with analyst forecasts for $107.1 million.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 28, 2026 16:36 ET (20:36 GMT)
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