Ambarella (BSP:A2MB34) Operating Margin %: -19.35% (As of Apr. 2026)


BSP:A2MB34 Ambarella Inc BSP:A2MB34
47 GF Score
Price R$13.38
GF Value R$16.29
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Ambarella Operating Margin %?

Ambarella BSP:A2MB34 -1.69% 47 Operating Margin % is -19.35% as of Apr. 2026. GuruFocus rates BSP:A2MB34 with a GF Score™ of 47/100 and a GF Value™ of R$16.29 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,023 Semiconductors companies, Ambarella ranks worse than 83.28% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ambarella's Operating Income for the three months ended in Apr. 2026 was R$-98 Mil. Ambarella's Revenue for the three months ended in Apr. 2026 was R$505 Mil. Therefore, Ambarella's Operating Margin % for the quarter that ended in Apr. 2026 was -19.35%.

Warning Sign:

Ambarella Inc operating margin has been in a 5-year decline. The average rate of decline per year is -14.2%.

The historical rank and industry rank for Ambarella's Operating Margin % or its related term are showing as below:

BSP:A2MB34' s Operating Margin % Range Over the Past 10 Years
Min: -68.25   Med: -21.42   Max: 19.45
Current: -18.78


BSP:A2MB34's Operating Margin % is ranked worse than
83.28% of 1023 companies
in the Semiconductors industry
Industry Median: 5.18 vs BSP:A2MB34: -18.78

Ambarella's 5-Year Average Operating Margin % Growth Rate was -14.20% per year.

Ambarella's Operating Income for the three months ended in Apr. 2026 was R$-98 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was R$-405 Mil.


Ambarella  (BSP:A2MB34) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Ambarella Operating Margin % Related Terms


Ambarella Operating Margin % Historical Data

* Premium members only.

The historical data trend for Ambarella's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ambarella Operating Margin % Chart

Ambarella Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.93 -21.99 -68.25 -44.44 -21.12

Ambarella Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -30.11 -23.02 -14.98 -18.27 -19.35

BSP:A2MB34 vs AEHR, VECO, UCTT: Operating Margin % Comparison

For the Semiconductor Equipment & Materials subindustry, Ambarella's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ambarella Operating Margin % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Ambarella's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ambarella's Operating Margin % falls into.


BSP:A2MB34
47GF Score
Ambarella Inc BSP:A2MB34
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Ambarella Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ambarella's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=-440.001 / 2083.067
=-21.12 %

Ambarella's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2026 ) / Revenue (Q: Apr. 2026 )
=-97.738 / 505.187
=-19.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -19.35% mean?
Ambarella (BSP:A2MB34) has a Operating Margin % of -19.35% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ambarella and its competitors. According to the industry distribution chart, Ambarella ranks #852 out of 1023 companies in the Semiconductors industry, placing it in the top 83.3%.
Is Ambarella's Operating Margin % too high?
Ambarella's current Operating Margin % is -19.35%. Based on the distribution chart, Ambarella ranks #852 out of 1023 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Ambarella has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ambarella's Operating Margin % compare to AEHR and VECO?
According to the Semiconductors industry distribution chart, Ambarella ranks #852 out of 1023 companies for Operating Margin %. This places Ambarella in the lower half of its industry. The industry median Operating Margin % is 5.18. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ambarella and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambarella's current Operating Margin % is -19.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambarella stock overvalued right now?
Based on GuruFocus' analysis, Ambarella (BSP:A2MB34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$16.29, compared to a current price of R$13.38 — trading 17.9% below its estimated fair value. The current Operating Margin % is -19.35%. Ambarella's overall GF Score™ is 47/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ambarella (BSP:A2MB34), the current Operating Margin % is -19.35% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ambarella (BSP:A2MB34) Overvalued in 2026?

Based on GuruFocus' analysis, Ambarella stock appears to be undervalued. The current stock price of R$13.38 is trading 17.9% below its estimated GF Value™ of R$16.29. GuruFocus considers Ambarella to be Modestly Undervalued.

Key valuation signals for BSP:A2MB34:

  • Operating Margin %: -19.35%
  • GF Value™: R$16.29 vs. price of R$13.38 (17.9% below fair value)
  • GF Score™: 47/100 with 2 warning signs

No single metric tells the full story. See the BSP:A2MB34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ambarella Business Description

Address 3001 Tasman Drive, Santa Clara, CA, USA, 95054
Ambarella Inc is a developer of low-power system-on-a-chip, or SoC, semiconductors and software for edge and physical artificial intelligence (AI) applications and intelligent automation. Its products are used in a wide variety of human viewing, computer vision for edge and physical AI applications, including a variety of video security cameras, automotive camera systems, fixed robots, autonomous mobile robots (AMRs), industrial applications, intelligent transportation systems, and consumer devices, such as action, drone and 360 degree cameras. The company operates as a single operating and reportable segment and derives substantially all of its revenue from development and sales of low-power AI-based processing and video and image processing SoC solutions.
47GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$13.38
Price
R$16.29
GF Value