Ambarella (AMBA) opened Q1 2027 with revenue of US$100.4 million and a basic EPS loss of US$0.41, while trailing twelve month revenue sat at US$405.2 million and EPS was a loss of US$1.62. Over recent quarters, the company has seen revenue move from US$85.9 million in Q1 2026 to just over US$100 million in the latest period and quarterly EPS losses range between about US$0.35 and US$0.58. This sets the scene for an earnings print where growth ambitions are still running ahead of profitability. For investors, the focus this quarter is on how much of that top line is sticking as Ambarella works to contain losses and stabilise margins.

See our full analysis for Ambarella.

With the latest results on the table, the next step is to weigh these numbers against the most widely held narratives about Ambarella to see which stories still hold up and which ones the margins are starting to question.

Losses Still Meaningful At US$18 Million

• Net income for Q1 2027 was a loss of US$18.1 million on US$100.4 million of revenue, and over the last four quarters losses totaled US$69.6 million on US$405.2 million of revenue, so the business is still running at a clear loss even with higher sales.
• Consensus narrative talks about higher-margin AI system on chips and unified software helping earnings over time, yet the latest trailing EPS is still a loss of US$1.62 and losses over the past five years have grown about 17.5% per year, which pushes you to ask how quickly those margin benefits are actually flowing through.
  • Analysts expecting revenue growth of about 13.7% a year are effectively assuming that this type of loss profile can be supported while the product pipeline scales.
  • At the same time, the company is not expected to return to profitability within the next three years in these forecasts, so any improvement story is starting from a base of sustained losses.

Consensus watchers may want to see how that long term story lines up with the current loss profile before relying too heavily on growth forecasts. 📊 Read the what the Community is saying about Ambarella.

Revenue Growth Forecast At 13.7% A Year

• Trailing twelve month revenue has moved from US$284.9 million to US$405.2 million over the last six reported periods, and forecasts in the dataset call for revenue growth of about 13.7% a year compared with a US market forecast of 11.9% a year.
• Bulls point to growing edge AI demand and design wins as support for this faster growth, and the recent move from US$85.9 million in Q1 2026 revenue to just over US$100 million in Q1 2027 gives some backing to that idea, but the fact that the company is still unprofitable means the bullish view hinges on growth eventually being strong enough to cover ongoing investment.
  • The bullish narrative references broad adoption across auto and IoT, yet the financials still show quarterly losses ranging roughly between US$15 million and US$24 million over the last six quarters.
  • That mix of higher sales with continuing losses leaves investors weighing how much of the expected revenue growth actually turns into durable earnings rather than just higher scale at similar loss levels.

Stronger growth fans who want to see how those design wins translate into detailed forecasts may find the fuller bullish narrative helpful. 🐂 Ambarella Bull Case.

P/S Of 7.8x And DCF Value Above Market

• Based on the data provided, Ambarella trades on a P/S of 7.8x, which is below the US Semiconductor industry average of 8.8x and a peer average of 8.0x, and the current share price of US$72.18 sits below a DCF fair value of about US$81.31 and under the single allowed analyst price target of US$93.75.
• Bears highlight that the company is still loss making despite these valuation markers, and the fact that losses over the past five years have increased at around 17.5% a year together with recent insider selling within the last three months gives that cautious view some factual backing even though the current P/S looks a bit lower than peers.
  • The risk side of the dataset also flags that the company is not expected to be profitable within the next three years, which means valuation is being judged mainly against sales rather than earnings.
  • Significant insider selling recently is cited as a minor risk, and when combined with ongoing losses it is something cautious investors often watch closely, even if the market price screens below the DCF fair value figure.

Readers who are more focused on what could go wrong than on upside scenarios may want to check how these risks are framed in the detailed bearish narrative. 🐻 Ambarella Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Ambarella on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With a mix of concern about ongoing losses and optimism around growth forecasts, it helps to see the full picture for yourself. If you want a clearer sense of how the upside and downside stack up before making your own call, take a closer look at the 4 key rewards and 2 important warning signs.

See What Else Is Out There

Ambarella is still carrying meaningful losses, with net income and EPS both negative despite forecast revenue growth and a P/S that already reflects growth expectations.

If you want stocks where the focus is more on resilient financial profiles than on turning around losses, check out the 62 resilient stocks with low risk scores to find companies built around steadier risk profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.