Amplitude Slashes FY26 EPS Guidance by 57% Despite AI Product Rollout
Summary
Amplitude, Inc. has significantly cut its 2026 adjusted EPS guidance by 57% to $0.05 at the midpoint, a material downgrade to its profitability outlook. This reduction is attributed to near-term margin pressure from rising AI inference costs, even as the company invests in new AI features, infrastructure, and reorganizations to support AI-native workflows. The company also announced the rollout of new AI agents and closed acquisitions aimed at accelerating AI capabilities. While Amplitude reported Q1 2026 revenue of $93.5 million, a 17% year-over-year increase, which was previously known from May 6th filings and news, the substantial EPS guidance cut is new and will likely trigger a strong negative market reaction. Traders will be focused on the implications of increased AI costs on future profitability and the timeline for these investments to yield positive financial returns.
At the time of this announcement, AMPL was trading at $6.01 on NASDAQ in the Technology sector, with a market capitalization of approximately $788.2M. The 52-week trading range was $5.51 to $14.49. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.