Ambarella, Inc. has reported its financial results for the third quarter of fiscal year 2026, and the figures show significant growth and positive changes compared to the same period in the previous year.
The company's revenue for the third quarter of fiscal 2026 was $108.5 million, reflecting a substantial increase of 31.2% from $82.7 million in the same period in fiscal 2025. For the nine months ended October 31, 2025, revenue was $289.8 million, up by 44.3% from the previous year.
On a non-GAAP basis, the gross margin for the third quarter of fiscal 2026 was 60.9%, compared with 62.6% for the same period in fiscal 2025. For the nine months ended October 31, 2025, non-GAAP gross margin was 61.1%, a decrease from 63.0% for the nine months ended October 31, 2024.
The non-GAAP net profit for the third quarter of fiscal 2026 was $11.9 million, or earnings per diluted ordinary share of $0.27. This represents a significant increase from the non-GAAP net profit of $4.6 million, or earnings per diluted ordinary share of $0.11, for the same period in fiscal 2025. For the nine months ended October 31, 2025, the non-GAAP net profit was $21.3 million, or earnings per diluted ordinary share of $0.49, compared to a non-GAAP net loss of $11.6 million, or loss per diluted ordinary share of $0.28, for the nine months ended October 31, 2024.
The company's total cash, cash equivalents, and marketable debt securities on hand at the end of the third quarter of fiscal 2026 was $295.3 million, showing an increase from $261.2 million at the end of the prior quarter and $226.5 million at the end of the same quarter a year ago.
Ambarella also provided guidance for the fourth quarter of fiscal year 2026, with expected revenue between $97.0 million and $103.0 million, non-GAAP gross margin between 59.0% and 60.5%, and non-GAAP operating expenses between $55.0 million and $58.0 million.
In a statement, Fermi Wang, President and CEO of Ambarella, highlighted the company's record quarterly revenue, strong revenue growth, and operating efficiency. He also expressed optimism about the future due to the increasing demand for the company's products in edge AI applications and the outlook for robust new product cycles.
These results demonstrate a positive trajectory for Ambarella, reflecting strong revenue growth, improved profitability, and a strengthened financial position. The market has reacted to these announcements by moving the company's shares 1.56% to a price of $90.97. Check out the company's full 8-K submission here.
