Rambus earnings released on October 26, 2026, showed record third-quarter revenue of $218.3 million, up from $178.5 million a year earlier and above management’s guidance. The chip and intellectual-property provider also reported higher profit and forecast fourth-quarter revenue of $227 million to $233 million.
Key Takeaways
- Record product revenue helped quarterly sales exceed the $210 million–$216 million guidance range.
- GAAP net income rose to $74.6 million from $48.4 million a year earlier.
- Fourth-quarter guidance anticipates higher product sales but remains dependent on customer agreements.
Rambus earnings show growth across revenue streams
For the quarter ended September 30, 2026, product revenue reached a record $114.3 million, compared with $93.3 million a year earlier. Royalties increased to $77.0 million from $65.1 million, while contract and other revenue rose to $27.0 million from $20.1 million.
Rambus’s third-quarter financial results showed product revenue rising 15% from the preceding quarter. Chief Executive Luc Seraphin attributed the record product sales and operating cash generation to strong customer demand, while highlighting the company’s expansion of chip and IP offerings for AI and data-center infrastructure.
GAAP diluted earnings per share increased to $0.69 from $0.44 a year earlier. Non-GAAP diluted earnings per share were $0.84, compared with $0.62. Those adjusted figures exclude items including stock-based compensation and amortization of acquired intangible assets and are distinct from GAAP earnings.
| Item | Details |
|---|---|
| Q4 2026 total revenue guidance | $227 million–$233 million |
| Q4 product revenue guidance | $127 million–$133 million |
| Q4 royalties revenue guidance | $68 million–$74 million |
| Q4 contract and other revenue guidance | $26 million–$32 million |
Profit rises despite higher operating expenses
GAAP operating income increased to $83.6 million from $63.3 million, while operating expenses rose to $87.3 million from $78.7 million. The GAAP operating margin widened to 38% from 35%, indicating that operating profit grew faster than revenue.
Operating cash flow reached a record $102.5 million. Cash, cash equivalents and marketable securities nevertheless declined by $48.0 million from June 30 to $776.9 million at September 30. Rambus said the decline mainly reflected $135.4 million spent on share repurchases and $11.2 million on capital expenditures, partly offset by operating cash generation.
Fourth-quarter outlook calls for higher sales
Management’s fourth-quarter revenue forecast is above the third-quarter result, with product sales expected to rise further. The outlook is guidance, not completed business: Rambus cautioned that achieving the revenue range requires signing customer agreements for product sales and solutions licensing, among other matters.
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 for the quarter ending December 31, 2026.
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