Rambus third-quarter revenue rises 22% to record $218.3 million, above guidance

Rambus Inc. (RMBS) said in a regulatory filing on Monday that third-quarter revenue rose 22% to a record $218.3 million, up from $178.5 million a year earlier.

The results cover the quarter ended Sept. 30, 2026, and were released in a press release attached to a Form 8-K.

Revenue came in above the company's guidance range of $210 million to $216 million.

Here's how the company did:

• GAAP diluted earnings per share: $0.69 vs. $0.44 a year earlier
• Non-GAAP diluted earnings per share: $0.84 vs. $0.62 a year earlier
• Revenue: $218.3 million vs. $178.5 million a year earlier

The company said GAAP and non-GAAP diluted earnings per share also exceeded its guidance range. The filing does not restate that range.

Product revenue rose 22% from a year earlier and 15% from the prior quarter, to $114.3 million. Royalties revenue reached $77.0 million, up from $65.1 million, and contract and other revenue was $27.0 million, from $20.1 million.

Profit and costs

GAAP operating income was $83.6 million, compared with $63.3 million a year earlier. The GAAP operating margin was 38%, up from 35%.

Non-GAAP operating income was $102.2 million, from $79.2 million, and the non-GAAP operating margin was 47%, up from 44%.

GAAP net income was $74.6 million, up from $48.4 million. Non-GAAP net income was $91.7 million, from $68.2 million.

Total GAAP cost of revenue was $47.4 million, and GAAP operating expenses were $87.3 million. The company excluded $17.1 million of stock-based compensation expense from its non-GAAP operating income. Restructuring charges were $223,000 in the quarter and $3.5 million for the first nine months.

For the first nine months, revenue was $605.9 million, up from $517.4 million, and GAAP net income was $202.0 million, from $166.6 million. GAAP diluted earnings per share for the nine months was $1.84, up from $1.53.

“Rambus delivered record quarterly revenue and earnings that exceeded our guidance, with strong customer demand driving record product revenue and record cash from operations,” said president and chief executive officer Luc Seraphin.

Seraphin also said the company expects “an even stronger performance in Q4” and is well positioned for long-term profitable growth.

The company said it expanded its product and IP offerings for next-generation AI systems, including a PMIC for LPDDR6 SOCAMM2 and data center-class Root of Trust security IP.

Cash and repurchases

Cash, cash equivalents and marketable securities were $776.9 million at Sept. 30, down $48.0 million from June 30.

The decrease mainly reflected $135.4 million paid for repurchases of common stock and $11.2 million paid for capital expenditures. Those outflows were partly offset by $102.5 million of cash from operating activities, which the company described as a record for the quarter.

Fourth-quarter outlook

The company expects fourth-quarter revenue of $227 million to $233 million. It expects product revenue of $127 million to $133 million, royalties revenue of $68 million to $74 million, and contract and other revenue of $26 million to $32 million.

The company said revenue is not without risk and that reaching the range will require it to sign customer agreements for various product sales and solutions licensing, among other matters.

It expects GAAP operating costs and expenses of $139 million to $143 million and non-GAAP operating costs and expenses of $120 million to $124 million. GAAP diluted earnings per share is expected at $0.68 to $0.76, and non-GAAP diluted earnings per share at $0.84 to $0.92.

The assumptions include interest and other income of $6.5 million, a 17.5% GAAP tax rate, a 16% non-GAAP tax rate and 109 million diluted shares. The filing does not say how this outlook compares with any earlier fourth-quarter guidance.

Management will discuss the results on a conference call at 2:00 p.m. PT. Audio will be available, slides will be posted at investor.rambus.com, and a replay will be available for the next week.

The company describes itself as a provider of chips and silicon IP for data-intensive computing systems, with a focus on data center and AI infrastructure.