Rambus (RMBS) Q3 2026 Earnings Report

The call was strongly positive. Rambus reported record revenue, earnings, product revenue, and operating cash flow; delivered strong product and silicon IP momentum; completed a $100 million share repurchase; and provided robust fourth-quarter and full-year growth expectations. The main challenges were tighter supply, elevated supply-chain input costs, modest MRDIMM adoption, and a gradual ramp for SOCAMM2, but management stated that supply constraints had not affected Q3 or Q4 results and expressed confidence in demand growth into 2027.

For Q4, Rambus expects revenue to be between $227 million and $233 million, product revenue to be between $127 million and $133 million, royalties revenue to be between $68 million and $74 million, and contract and other revenue to be between $26 million and $32 million; at the midpoint, product revenue is expected to increase 34% year-over-year and 14% sequentially. Q4 non-GAAP total operating costs are expected to be between $124 million and $120 million, capital expenditures approximately $8 million, non-GAAP operating profit between a profit of $103 million and $113 million, interest and other income approximately $6.5 million, and, assuming a non-GAAP tax rate of 16% and 109 million diluted shares outstanding, non-GAAP earnings per share in the range from $0.84 to $0.92, representing at the midpoint growth of 30% year-over-year and 5% sequentially. The company expects another record quarter of product revenue in Q4, which it expects to grow more than 30% year-over-year; 2026 revenue is expected to grow approximately 18% over 2025, including product revenue growth of approximately 24%, and non-GAAP earnings per share to grow approximately 24% over 2025. It expects to return 40% to 50% of free cash flows to shareholders over time, product gross margin in the near term within 60% to 63%, a long-term target of 60% to 65%, 2026 product gross margin right in the middle of the 60% to 63% range, and its silicon IP business around $130 million, growing at 10% to 15%, more like growing towards the higher end of that range.