Latest news with #fiscal2026
Bloomberg
19 hours ago
- Business
- Bloomberg
Illinois Lawmakers Pass Budget With Federal Funding Uncertain
Illinois legislators late Saturday approved a $55 billion spending plan for the fiscal year starting July 1, unsure how many federal dollars they can count on during President Donald Trump's second term. The Democrat-controlled Illinois House of Representatives and Senate voted on revenue and spending legislation Saturday for the fiscal 2026 budget, which cuts roughly $380 million from current spending. The passage comes amid growing uncertainty about funding coming from Washington. The federal government is struggling with its own surging debt and Trump wants to push more costs to states.
Yahoo
a day ago
- Business
- Yahoo
After a Sharp Rally, Okta Stock Pulls Back on Cautious Outlook -- Time to Buy the Dip?
Okta turned in solid fiscal Q1 results, but conservative guidance sank the stock. The company continues to innovate, while its new go-to-market strategy is showing signs of promise. The stock is reasonably valued at current levels. 10 stocks we like better than Okta › Okta (NASDAQ: OKTA) has been in rally mode for much of this year, but the stock hit a speed bump when it reported its fiscal 2026 first-quarter results. Despite a 15% drop in its share price since May 27, the stock is still up 35% year to date, as of this writing. Let's take a closer look at the cybersecurity company's most recent results and guidance to see it if can regain its momentum. In what has been a pretty common theme of late, Okta shares fell after management issued cautious guidance. With continued uncertainty around tariffs and their effect on the economy, many companies have opted to take a conservative view when it comes to their forecasts. Okta said it saw no effect in Q1 from the macro environment, but it still thought it was prudent to stay conservative. As such, it maintained its full-year revenue forecast, calling for fiscal 2026 revenue of $2.85 billion to $2.86 billion, representing 9% to 10% growth. However, it did increase its adjusted earnings per share (EPS) outlook from a range of $3.15 to $3.20 to a new range of $3.23 to $3.28. Management called out the strong demand for newer products, like Identity Governance, Privileged Access, and Identity Threat Protection powered by Okta AI. The company is also taking steps to address rising security risks related to AI agents and other non-human identities (NHIs). To do that, it's combining its Identity Security Posture Management tools with Privileged Access to offer a unified platform that can secure both human users and NIHs across an organization. At the same time, Okta is confident its strategy of making sales teams more specialized will pay off over the long run. That confidence is backed by early results from parts of the business where this approach is already in place. For example, Okta shifted its U.S. small and mid-sized business (SMB) team to a "hunter-farmer" model last year where some reps focus on landing new customers while others focus on growing existing accounts. That team performed well in Q1, showing that this kind of focus can lead to better results over time. This all led to a solid fiscal Q1, which ended April 30. Okta's revenue increased 12% year over year to $688 million. This easily topped its prior forecast for revenue of $678 million to $680 million. Subscription revenue also increased 12% to $673 million. Adjusted EPS jumped 24% year over year to $0.86, well above the $0.76 to $0.77 outlook. Okta's net dollar retention rate -- which measures the amount of revenue spent from existing customers over the past 12 months after churn -- was 106%. Any number over 100% indicates growth. However, the metric continues to drift lower, down from 111% a year ago and 117% two years ago. Customers with annual contract values (ACVs) above $100,000 rose 7% to 4,870, and customers with ACVs of more than $1 million jumped 20% year over year. Okta's remaining performance obligation (RPO) backlog increased 21% to $4.08 billion, while its current RPO (cRPO) backlog, the subscription backlog expected to be recognized over the next 12 months, rose 14% to nearly $2.23 billion. Both metrics are based on signed contracts and are an indication of future revenue. For fiscal Q2, management guided for approximately 10% revenue growth to $710 million to $712 million. Adjusted EPS should land between $0.83 and $0.84. While Okta decided to take a cautious approach to guidance, the company is seeing growing market opportunities in a world that's only becoming more complex due to AI. While this technology is helping cybersecurity companies improve their services, it's also helping cyber criminals and state-sponsored cyberthreats become more sophisticated, efficient, and difficult to detect. The company is innovating quickly to address these new threats, and AI should continue to be a major growth driver in the cybersecurity space. With a price-to-sales (P/S) ratio of about 6.4 based on analysts' fiscal 2026 revenue estimates, Okta is still reasonably valued compared to many other leading cybersecurity stocks. As such, this is a good opportunity to pick up some shares while they take a breather from their 2025 rally. Before you buy stock in Okta, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Okta wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta. The Motley Fool has a disclosure policy. After a Sharp Rally, Okta Stock Pulls Back on Cautious Outlook -- Time to Buy the Dip? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Ambarella, Inc. Announces First Quarter Fiscal Year 2026 Financial Results
SANTA CLARA, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced first quarter fiscal 2026 financial results for the period ended April 30, 2025. Revenue for the first quarter of fiscal 2026 was $85.9 million, up 57.6% from $54.5 million in the same period in fiscal 2025. Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2026 was 60.0%, compared with 60.9% for the same period in fiscal 2025. GAAP net loss for the first quarter of fiscal 2026 was $24.3 million, or loss per diluted ordinary share of $0.58, compared with a GAAP net loss of $37.9 million, or loss per diluted ordinary share of $0.93, for the same period in fiscal 2025. Financial results on a non-GAAP basis for the first quarter of fiscal 2026 are as follows: Gross margin on a non-GAAP basis for the first quarter of fiscal 2026 was 62.0%, compared with 63.4% for the same period in fiscal 2025. Non-GAAP net profit for the first quarter of fiscal 2026 was $3.0 million, or earnings per diluted ordinary share of $0.07. This compares with non-GAAP net loss of $10.5 million, or loss per diluted ordinary share of $0.26, for the same period in fiscal 2025. Based on information available as of today, Ambarella is offering the following guidance for the second quarter of fiscal year 2026, ending July 31, 2025: Revenue is expected to be between $86.0 million and $94.0 million. Gross margin on a non-GAAP basis is expected to be between 60.5% and 62.0%. Non-GAAP operating expenses are expected to be between $52.5 million and $55.5 million. Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release. Total cash, cash equivalents and marketable debt securities on hand at the end of the first quarter of fiscal 2026 was $259.4 million, compared with $250.3 million at the end of the prior quarter and $203.3 million at the end of the same quarter a year ago. 'As the established edge AI market leader, we achieved our fourth consecutive quarter of record AI revenue with results in the upper half of our Q1 revenue guidance range. We are increasing our fiscal 2026 revenue growth guidance to a range of 19% to 25%, or approximately $348 million at the mid-point, with the broader guidance range reflecting our consideration of the uncertain geopolitical environment,' said Fermi Wang, President & CEO. 'We continue to innovate at a rapid pace, and by leveraging our low power and scalable 3rd generation AI silicon and software architecture, our development of a new SoC is efficiently extending our reach into the edge AI infrastructure market.' Stock Repurchase During the second quarter of fiscal year 2026, Ambarella's Board of Directors approved an extension of the current share repurchase program for an additional twelve months ending June 30, 2026. In the first quarter of fiscal year 2026, the company repurchased a total of 24,152 shares for total consideration of approximately $1.0 million. As of today, there is approximately $48.0 million available for repurchase under the company's stock repurchase program. The repurchase program does not obligate the company to acquire any particular amount of ordinary shares, and it may be suspended at any time at the company's discretion. Quarterly Conference Call Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the first quarter of fiscal year 2026 results. A live and archived webcast of the call will be available on Ambarella's website at for up to 30 days after the call. About Ambarella Ambarella's products are used in a wide variety of edge AI and human vision applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and robotics applications. Ambarella's low-power systems-on-chip (SoCs) provide powerful deep neural network processing to enable intelligent perception, fusion and planning, and offer high-resolution video compression, advanced image and radar processing. For more information, please visit "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as 'outlook,' 'projected,' 'intends,' 'will,' 'estimates,' 'anticipates,' 'expects,' 'believes,' 'could,' 'should,' or similar expressions, including the guidance for the second quarter of fiscal year 2026 ending July 31, 2025, and the comments of our CEO relating to our expectation of future revenue growth, the growth potential for our edge AI inference products, our ability to continue to innovate, and our ability to expand into edge infrastructure. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance. The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers' products; our customers' ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision, AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets and applications, such as edge infrastructure; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation. Further information on these and other factors that could affect our financial results is included in the company's Annual Report on Form 10-K for our 2025 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also set forth in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at or the SEC's web site at Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Quarterly Report on Form 10-Q for the first fiscal quarter ended April 30, 2025 could differ from the preliminary results announced in this press release. Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law. Non-GAAP Financial Measures The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company's financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company's operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies. With respect to its financial results for the first quarter of fiscal year 2026, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company's expectations for the second quarter of fiscal year 2026, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. AMBARELLA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) Three Months Ended April 30, 2025 2024 Revenue $ 85,872 $ 54,473 Cost of revenue 34,336 21,313 Gross profit 51,536 33,160 Operating expenses: Research and development 58,819 54,137 Selling, general and administrative 18,575 18,468 Total operating expenses 77,394 72,605 Loss from operations (25,858 ) (39,445 ) Other income, net 2,175 2,271 Loss before income taxes (23,683 ) (37,174 ) Provision for income taxes 645 758 Net loss $ (24,328 ) $ (37,932 ) Net loss per share attributable to ordinary shareholders: Basic $ (0.58 ) $ (0.93 ) Diluted $ (0.58 ) $ (0.93 ) Weighted-average shares used to compute net loss per share attributable to ordinary shareholders: Basic 42,219,972 40,774,991 Diluted 42,219,972 40,774,991 The following tables present details of stock-based compensation and acquisition-related costs included in each functional line item in the condensed consolidated statements of operations above: Three Months Ended April 30, 2025 2024 (unaudited, in thousands) Stock-based compensation: Cost of revenue $ 951 $ 607 Research and development 17,585 17,621 Selling, general and administrative 7,594 7,808 Total stock-based compensation $ 26,130 $ 26,036 Three Months Ended April 30, 2025 2024 (unaudited, in thousands) Acquisition-related costs: Cost of revenue $ 757 $ 757 Research and development — — Selling, general and administrative 456 520 Total acquisition-related costs $ 1,213 $ 1,277 The difference between GAAP and non-GAAP gross margin was 2.0% and 2.5%, or $1.7 million and $1.4 million, for the three months ended April 30, 2025 and 2024, respectively. The differences were due to the effect of stock-based compensation and amortization of acquisition-related costs. AMBARELLA, INC. RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE (in thousands, except share and per share data) Three Months Ended April 30, 2025 2024 (unaudited) GAAP net loss $ (24,328 ) $ (37,932 ) Non-GAAP adjustments: Stock-based compensation expense 26,130 26,036 Acquisition-related costs 1,213 1,277 Income tax effect 14 152 Non-GAAP net income (loss) $ 3,029 $ (10,467 ) GAAP - diluted weighted average shares 42,219,972 40,774,991 Non-GAAP - diluted weighted average shares 42,451,235 40,774,991 GAAP - diluted net loss per share $ (0.58 ) $ (0.93 ) Non-GAAP adjustments: Stock-based compensation expense 0.62 0.64 Acquisition-related costs 0.03 0.03 Income tax effect — — Effect of Non-GAAP - diluted weighted average shares — — Non-GAAP - diluted net income (loss) per share $ 0.07 $ (0.26 ) AMBARELLA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) April 30, January 31, 2025 2025 ASSETS Current assets: Cash and cash equivalents $ 141,285 $ 144,622 Marketable debt securities 118,102 105,643 Accounts receivable, net 30,235 29,767 Inventories 39,289 34,428 Restricted cash 441 7 Prepaid expenses and other current assets 6,197 6,084 Total current assets 335,549 320,551 Property and equipment, net 10,248 9,084 Intangible assets, net 44,895 47,279 Operating lease right-of-use assets, net 4,377 5,188 Goodwill 303,625 303,625 Other non-current assets 3,224 3,241 Total assets $ 701,918 $ 688,968 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 35,290 21,775 Accrued and other current liabilities 73,479 80,781 Operating lease liabilities, current 2,335 2,829 Income taxes payable 1,633 1,383 Deferred revenue, current 12,114 14,226 Total current liabilities 124,851 120,994 Operating lease liabilities, non-current 2,056 2,436 Other long-term liabilities 2,295 4,126 Total liabilities 129,202 127,556 Shareholders' equity: Preference shares — — Ordinary shares 19 19 Additional paid-in capital 848,756 813,683 Accumulated other comprehensive income (loss) 326 (233 ) Accumulated deficit (276,385 ) (252,057 ) Total shareholders' equity 572,716 561,412 Total liabilities and shareholders' equity $ 701,918 $ 688,968 Contact: Louis Gerhardy408.636.2310lgerhardy@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Trump administration unveils more detailed proposal for steep 2026 spending cuts
The Trump administration on Friday unveiled more details of the president's vision for how to fund the government in fiscal year 2026, expanding on its request earlier this month for steep spending cuts. The lengthy budget appendix, which stretches to more than 1,200 pages, comes as Republicans in both chambers have pressed the administration for more information about the president's proposed funding cuts. President Trump is calling for more than $160 billion in cuts to nondefense discretionary spending — amounting to about 22 percent — while requesting a boost to defense dollars. While presidential budget requests aren't signed into law, they can serve as a blueprint for lawmakers as they begin crafting their funding legislation. House appropriators will take up the first set of funding bills next week, with subcommittees on military construction, the Department of Veterans Affairs, rural development, and the Department of Agriculture set to meet to consider the proposals on Thursday. The White House rolled out Trump's so-called skinny budget about a month ago. It ran 46 pages, and it's not unusual for presidents to first roll out shorter versions of their proposals before releasing more details. But GOP appropriators said they needed more information about the president's funding wishlist, and budget hawks grumbled at the time about key details missing. 'There needs to be a lot more programmatic detail to write these bills to,' Cole told The Hill ahead of the current congressional recess. 'Their skinny line budget is just that. It's not a full presidential budget.' 'We will just do a better job for them,' Cole said at the time, if appropriators have more guidance from the administration. The documents released Friday build upon the cuts outlined in Trump's earlier request, which called for double-digit cuts for a list of agencies including the departments of Agriculture, Education, Housing and Urban Development, Labor, and State. The administration is also pushing for Congress to put dozens of programs on the chopping block, including the Low Income Home Energy Assistance Program, Job Corps, the Community Development Block Grant program and the Corporation for Public Broadcasting. However, the administration noted that, for defense programs, the document only contained appropriations language and that a 'separate document containing budget estimates for the Department of Defense will be published in June 2025.' It also said 'mandatory spending and receipts proposals in this document are limited to those proposals that support the president's 2026 discretionary request.' The forthcoming funding bills from the GOP-led House are expected to be more partisan in nature than in the Senate, where Democratic votes will be needed to get annual funding legislation across the The bills from the GOP-led House are expected to be more partisan in nature than in the Senate, where Democratic votes will be needed to get annual funding legislation across the floor. Democrats have already come out in strong opposition to the president's budget request. And there are serious trust issues in the party about eventual negotiations with Republicans on fiscal year 2026 funding as the administration has undertaken a sweeping operation to shrink the size of the government without buy-in from Congress. 'This is a draconian proposal to hurt working people and our economy, and it is dead on arrival in Congress as long as I have anything to say about it,' Sen. Patty Murray (Wash.), top Democrat on the Senate Appropriations Committee, said in a statement Friday. 'This is not a complete budget,' Rep. Rosa DeLauro (Conn.), top Democrat on the House Appropriations Committee, also said Friday. 'We are supposed to start putting together the funding bills for 2026 next week. If, as expected, House Republicans follow what President Trump has proposed so far, it is not a serious effort to deliver for the American people.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
E&E News
3 days ago
- Business
- E&E News
E&E News reporters detail agency overhaul plans
POLITICO's E&E News hosts a virtual briefing on energy and environment issues for subscribers each month. If you missed Thursday's panel, we invite you to watch the video recording of the event. Stay tuned for details on our next briefing. Federal agencies have been rolling out plans to reorganize or downsize operations as lawmakers begin work on fiscal 2026 spending bills. E&E News reporters Robin Bravender, Sean Reilly, Jen Yachnin and Brian Dabbs discussed details about layoffs and changes already happening, as well as plans in development. Advertisement Robin detailed how Elon Musk's Department of Government Efficiency has been changing its methods. She also explained what will happen now that he's leaving government.
