Rambus Sees Fourth-Quarter Revenue of Up to $233 Million
Key Facts
Rambus set fourth-quarter 2026 revenue at $227 million to $233 million, with a midpoint of $230 million, above analysts’ average estimate of $225 million, according to the company’s guidance and a comparison cited by Investing.com via StreetInsider. The guidance follows revenue of $218.3 million in the third quarter, above its previous range of $210 million to $216 million. Revenue also exceeded analysts’ estimate of $213.21 million. CEO Luc Seraphin said strong customer demand drove product revenue and operating cash flow to record levels. He added that the company expects stronger performance in the fourth quarter.
The guidance includes product revenue of $127 million to $133 million, intellectual property royalties of $68 million to $74 million, and contract and other revenue of $26 million to $32 million. In the third quarter, product revenue reached a record $114.3 million, up 15% from the previous quarter and 22% from the same period last year. Royalty revenue was $77 million, while contract and other revenue reached $27 million. This mix reflects an expected increase in product sales compared with the third quarter, alongside licensing royalties and contract revenue within separate ranges. Management attributed the strong performance to customer demand, without detailing in the statement how much each category would contribute to growth in the coming quarter.
Third-quarter results also topped market estimates for earnings: diluted non-GAAP earnings per share came to about $0.84, versus an estimate of $0.79, alongside revenue of $218.3 million compared with the $213.21 million expected. On a GAAP basis, diluted earnings per share rose to $0.69 from $0.44 a year earlier. Total revenue jumped from $178.5 million in the third quarter of 2025 to $218.3 million in the third quarter of 2026. The company also recorded $102.5 million in cash from operating activities, a record. Rambus said strong customer demand drove record product revenue and operating cash flow.
The company expanded its product and intellectual property offerings for next-generation AI systems, including a power management unit for LPDDR6 SOCAMM2 memory and Root of Trust security solutions for data centers. The additions come as Rambus expects stronger performance in the fourth quarter, citing accelerating demand and execution of its product roadmap, Seraphin said. The company, however, tied delivery of its expected revenue range to signing customer agreements for sales of various products and licensing of solutions. That makes the guidance contingent on completing those agreements, rather than on demand continuing alone. The company also forecast fourth-quarter diluted non-GAAP earnings per share of $0.84 to $0.92 and interest and other income of $6.5 million.
Cash, cash equivalents and marketable securities totaled $776.9 million on September 30, down $48 million from June 30. Rambus attributed the decline mainly to $135.4 million spent on share repurchases and $11.2 million in capital expenditures during the third quarter. In trading, RMBS shares rose 5.45% in the regular session on October 26 and closed at $90.32, before falling 0.85% in after-hours trading to $89.55, according to an Investing.com article attributed to Reuters. Management was scheduled to discuss third-quarter results on a conference call at 2:00 p.m. Pacific time on October 26. Achieving the fourth-quarter revenue range remains contingent on signing the customer agreements cited by the company.