Ambarella highlighted broad design wins across video conferencing, enterprise security and automotive—citing products from Insta360, QSC, IDIS, Dallmeier and IQSIGHT built on its CV72/CV25 SoCs—underscoring the programmability and scalability of its edge AI platform.
For fiscal 2026 Ambarella reported revenue up 37.2% to $390.7 million, non-GAAP gross margin of 60.7%, and cash and marketable securities of $312.6 million after generating $58 million of free cash flow.
Management guided fiscal Q1 2027 revenue to $97–$103 million, reiterated an automotive opportunity pipeline of about $13 billion for FY2027–2032, and extended its share repurchase program with roughly $48 million remaining.
Ambarella (NASDAQ:AMBA) executives used the company’s fiscal fourth-quarter earnings call to highlight recent design wins across IoT, enterprise security and automotive markets, while also detailing results for fiscal 2026 and providing guidance for the first quarter of fiscal 2027.
In prepared remarks, CEO Dr. Fermi Wang outlined a series of customer engagements the company said demonstrate the breadth of its edge AI system-on-chips (SoCs) and software platform.
In video conferencing, management said Insta360 launched the Link 2 Pro and Link 2C Pro high-end web cameras based on Ambarella’s H22 SoC. The company also pointed to QSC’s announcement of a Q-Sys high-definition video conferencing PTZ camera designed on the CV72 SoC, noting QSC is leveraging Ambarella’s AI ISP for enhanced video quality as well as AI features including face detection and intelligent presenter tracking.
In enterprise security, Ambarella cited multiple product announcements: IDIS introduced the DC-D3168 security camera based on CV72; Germany-based Dallmeier launched the Domera RDF6140 dome camera based on the CV25, using an AI accelerator for features including motion detection, tamper detection, intrusion detection, and line crossing; and IQSIGHT (previously known as Bosch) announced two new AI products based on CV72—the FLEXIDOME 7100i, which anonymizes images inside the camera for privacy and compliance, and the DINION 7100i, aimed at detecting people and vehicles with detail in dark, low-light conditions.
In automotive safety, ADAS and telematics, Wang highlighted several launches based on CV25. Ford recently launched the DealerFit Truck Bed Camera, which management described as a smart security camera for truck beds with real-time monitoring and AI-powered intrusion monitoring and threat detection. Thinkware launched the QXD2 in-car digital video recorder system, which management said is the first of its kind to leverage Ambarella’s AI ISP neural network on CV25; Thinkware is also using Ambarella’s ADAS software stack for forward-facing ADAS perception. Garmin announced its Dual-View two-camera system for professional truck drivers, also based on CV25.
Wang said these engagements reflect “a wide variety of applications and AI workloads,” and argued they underscore the programmability and flexibility of the company’s SoCs and software platform, enabling reuse and scalability for customers.
Management said it is seeing “edge AI green shoots” across diverse applications, but identified robotics, automotive and edge infrastructure as the largest long-term growth opportunities.
In robotics, Wang described the market as spanning factory automation, humanoids, mobile robots and aerial drones. He said fiscal Q4 marked the company’s first full quarter of production revenue from the aerial drone market, which he characterized as one of the highest-value mobile robotics categories. During Q&A, Ambarella also discussed an e-commerce warehouse robotics win, saying it is already in production at low volume and expected to grow, though the company declined to disclose the customer name or the size of the opportunity.
In edge infrastructure, management described two emerging design approaches among enterprise buyers:
Physical AI inference run on local edge gateways to aggregate and preprocess multi-modal sensor data in real time for use cases such as fleet management, physical security and industrial robots.
Digital AI applications that deploy centrally trained models to edge nodes after distillation and quantization, supporting low-latency closed-loop automation while maintaining centralized cloud control.
On automotive, Wang reiterated the company has two business areas: a safety/telematics/ADAS business representing most current auto revenue and near-term growth opportunity, and an autonomy business starting at Level 2+ that management framed as longer-term.
Wang said the automotive opportunities Ambarella has either won or been invited to bid on over the six-year period from fiscal 2027 through fiscal 2032 total approximately $13 billion, adding that the proportion of “won” opportunities is similar to last year. In Q&A, he said the company sees growth in the category compared with last year and emphasized that despite what he called a weak automotive market in 2025, Ambarella has continued to add design wins that help offset customer forecast cuts or production delays.
Discussing drones and competition, Wang said DJI continues to build some of its own silicon while also using external solutions to complement its portfolio. He added that, outside DJI, Ambarella does not know of other drone companies planning to build their own silicon and argued the company’s process roadmap—from 5-nanometer down to 4-nanometer and eventually 2-nanometer—positions it as one of the few able to serve the Chinese market. On U.S. regulatory restrictions affecting a Chinese competitor, management said there is no direct impact currently on Ambarella’s design win already in production, but the company is monitoring potential future impacts, noting that markets outside the U.S. remain large.
CFO John (last name not provided in the transcript) reported that fiscal 2026 revenue increased 37.2% to $390.7 million. He said automotive revenue, led by telematics, increased in the high single digits, while IoT revenue rose almost 50% year-over-year, led by portable video and continued growth in physical security.
Non-GAAP gross margin for fiscal 2026 was 60.7%, down from 62.7% in fiscal 2025. Non-GAAP operating expenses increased 12.9% year-over-year, driven by higher employee-related costs and SoC development projects.
Cash and marketable securities ended the year at $312.6 million, up from $250.3 million a year earlier, which management attributed to $58 million in free cash flow for the year (14.8% of revenue).
For fiscal Q4 (ended Jan. 31, 2026), revenue was $100.9 million, slightly above the midpoint of prior guidance, down 7% sequentially and up 20.1% year-over-year. Management said both automotive and IoT saw similar seasonal declines versus the prior quarter.
Non-GAAP gross margin in Q4 was 59.8%, and non-GAAP operating expenses were $56.5 million. The company reported non-GAAP net profit of $5.5 million, or $0.13 per diluted share. Operating cash flow was $18.9 million in the quarter, capital expenditures were $3.9 million, and free cash flow was $15 million.
On shareholder returns, the company said its board extended the share repurchase program for an additional 12 months ending June 30, 2026. Ambarella did not repurchase shares in Q4; it repurchased 24,152 shares for $1 million during the first quarter of fiscal 2026. Approximately $48 million remains under the authorization.
For fiscal Q1 2027 (ending April 30, 2026), Ambarella guided revenue to $97 million to $103 million, with auto revenue expected to increase sequentially and IoT revenue expected to be seasonally down. The company forecast non-GAAP gross margin of 59% to 60.5% and non-GAAP operating expenses of $55 million to $58 million.
Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.
Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.
