Rambus earnings for the third quarter of 2026 showed record total revenue of $218.3 million, up 22% from a year earlier and above the company’s guidance. The October 26 announcement also set a higher fourth-quarter revenue target, following record product sales and operating cash flow in the quarter ended September 30.
Key Takeaways
- Total revenue exceeded the company’s $210 million–$216 million guidance range.
- Product revenue reached $114.3 million, distinct from total company revenue.
- Fourth-quarter revenue guidance is $227 million–$233 million, subject to customer agreements and other risks.
Rambus earnings rise with record product sales
Rambus’ third-quarter financial results showed GAAP net income of $74.6 million, compared with $48.4 million a year earlier. GAAP diluted earnings per share increased to $0.69 from $0.44, while non-GAAP diluted earnings per share rose to $0.84 from $0.62.
Product revenue increased 15% from the preceding quarter and 22% year over year. That $114.3 million figure covers product sales only; royalties and contract and other revenue brought the company’s total to $218.3 million.
Chief Executive Luc Seraphin attributed record product revenue and operating cash flow to strong customer demand. Rambus also said it expanded its product and intellectual-property offerings for next-generation AI systems, including memory power-management and data-center security products.
The GAAP operating margin widened to 38% from 35% a year earlier. Non-GAAP earnings exclude items including stock-based compensation and acquired-intangible amortization, so they should be assessed separately from reported GAAP results.
| Item | Details |
|---|---|
| Q3 2026 product revenue | $114.3 million |
| Q3 2026 royalties revenue | $77.0 million |
| Q3 2026 contract and other revenue | $27.0 million |
Fourth-quarter outlook points to higher revenue
For the fourth quarter of 2026, Rambus expects total revenue of $227 million–$233 million and product revenue of $127 million–$133 million. Both ranges are above the corresponding third-quarter results, but remain management forecasts rather than completed sales.
The company forecasts GAAP diluted earnings per share of $0.68–$0.76 and non-GAAP diluted earnings per share of $0.84–$0.92.
Rambus cautioned that achieving its revenue outlook requires signing customer agreements for product sales and licensing solutions, among other matters. That makes execution on those agreements an important condition of the forecast.
Cash generation accompanies buybacks and AI investment
Operating cash flow reached a record $102.5 million. Cash, cash equivalents and marketable securities nevertheless declined $48.0 million from June 30 to $776.9 million, mainly reflecting $135.4 million spent on share repurchases and $11.2 million in capital expenditure.
Separately, Rambus announced its ChipAgents partnership on October 22, four days before the earnings release. Rambus is adopting the agentic AI platform across chip and intellectual-property design and verification workflows and became a strategic investor in ChipAgents. The companies aim to improve design speed and productivity; those intended benefits are not established quarterly results.
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