Rambus Revenue Rises 22% to $218.3 Million, Exceeding Estimates
Key Facts
Rambus reported third-quarter 2026 results on October 26, with revenue of $218.3 million, up 22% from the same period last year and above its previous range of $210 million to $216 million. The company also exceeded published analyst estimates for revenue of $213.21 million and non-GAAP earnings per share of $0.84, compared with an estimate of $0.79. Diluted GAAP earnings per share were $0.69, compared with $0.44 a year earlier. The results put product growth at the forefront of operating performance, alongside expanding revenue and improving year-over-year profitability metrics. CEO Luc Seraphin said, "Strong customer demand is driving record product revenue and record cash from operations."
Product revenue was $114.3 million, a record level that the company said was up 15% from the previous quarter and 22% from the third quarter last year. The performance reflects a greater contribution from products to the company's quarterly results, alongside year-over-year growth in total revenue. GAAP net income was about $74.6 million, compared with $48.4 million in the same period of 2025. The operating margin under the same measure rose to 38% from 35%. Non-GAAP earnings per share were $0.84, compared with $0.62 a year earlier, a different measure from GAAP earnings per share of $0.69.
Rambus generated a record $102.5 million in cash from operating activities in the third quarter, according to its statement. Management linked the figure to strong demand for the company's products, as well as record product revenue. Commenting on the outlook, the company said accelerating demand for its solutions and execution of its roadmap support its expectation for stronger performance in the fourth quarter. Seraphin added that the company expects "stronger performance in the fourth quarter" as it continues to execute its plan and demand for its solutions accelerates. Rambus expanded its technology offerings for upcoming AI-related systems, with a power-management chip for LPDDR6 SOCAMM2 and security Root of Trust technology aimed at data centers.
The company expects fourth-quarter 2026 revenue of $227 million to $233 million, including product revenue of $127 million to $133 million and royalties of $68 million to $74 million. Rambus said achieving revenue within the expected range will require signing agreements with customers for product sales and solution licensing, among other things. This condition makes customer agreements part of the assumptions in the company's forward guidance. The third-quarter results call was scheduled for October 26, 2026, at 5 p.m. Eastern Time. The company's stock closed at $90.32 that day, while Investing.com coverage reported a 1.8% decline in after-hours trading.