Description

Ambarella: From Drones to Driverless—How Edge AI Is Unlocking New Markets!

Ambarella, Inc. reported fiscal year 2026 revenue of $390.7 million, reflecting a 37.2% year-over-year increase and establishing a new revenue record for the company. Edge AI products represented approximately 80% of total revenue, with the company benefiting from strong growth in automotive telematics and Internet of Things (IoT) segments; IoT revenue increased nearly 50% led by video conferencing, physical security, and portable video markets, while automotive revenue grew in the high single digits. Fourth quarter revenue totaled $100.9 million, up 20.1% year-over-year but down 7% sequentially, consistent with typical seasonal patterns. Gross margins in fiscal 2026 were 60.7%, a decline from 62.7% the prior year, primarily due to increased operating expenses tied to employee costs and system-on-chip (SoC) development projects.