third quarter 2026
Filed Oct 26, 2026Record quarterly revenue of $218.3 million, up 22% year over year, exceeding guidance range; GAAP diluted earnings per share of $0.69 and non-GAAP diluted earnings per share of $0.84, exceeding guidance range.
Record revenue, product revenue, operating cash flow and earnings exceeded the stated third-quarter guidance range, while fourth-quarter revenue guidance is $227 million to $233 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $218.3M | – | 22% |
| Q3 2026 product revenueGAAP | $114.3M | 15% | 22% |
| Q3 2026 royalties revenueGAAP | $77M | – | – |
| Q3 2026 contract and other revenueGAAP | $27M | – | – |
| Q3 2026 total cost of revenueGAAP | $47.38M | – | – |
| Q3 2026 gross profitGAAP | $170.9M | – | – |
| Q3 2026 total operating expensesGAAP | $87.3M | – | – |
| Q3 2026 total operating expensesnon-GAAP | $70M | – | – |
| Q3 2026 total operating costs and expensesnon-GAAP | $116.1M | – | – |
| Q3 2026 research and developmentGAAP | $49.35M | – | – |
| Q3 2026 sales, general and administrativeGAAP | $37.68M | – | – |
| Q3 2026 restructuring chargesGAAP | $223K | – | – |
| Q3 2026 operating incomeGAAP | $83.6M | – | – |
| Q3 2026 operating incomenon-GAAP | $102.2M | – | – |
| Q3 2026 operating marginGAAP | 38 % | – | – |
| Q3 2026 operating marginnon-GAAP | 47 % | – | – |
| Q3 2026 interest and other income (expense), netGAAP | $6.88M | – | – |
| Q3 2026 income before income taxesGAAP | $90.53M | – | – |
| Q3 2026 provision for income taxesGAAP | $15.97M | – | – |
| Q3 2026 net incomeGAAP | $74.6M | – | – |
| Q3 2026 net incomenon-GAAP | $91.7M | – | – |
| Q3 2026 basic earnings per shareGAAP | $0.69 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $0.69 | – | – |
| Q3 2026 diluted earnings per sharenon-GAAP | $0.84 | – | – |
| Q3 2026 basic weighted-average sharesGAAP | 107,644 | – | – |
| Q3 2026 diluted weighted-average sharesGAAP | 108,788 | – | – |
| Q3 2026 cash from operating activitiesGAAP | $102.5M | – | – |
| Nine months ended September 30, 2026 total revenueGAAP | $605.9M | – | – |
| Nine months ended September 30, 2026 product revenueGAAP | $301.5M | – | – |
| Nine months ended September 30, 2026 royaltiesGAAP | $230.9M | – | – |
| Nine months ended September 30, 2026 contract and other revenueGAAP | $73.53M | – | – |
| Nine months ended September 30, 2026 total cost of revenueGAAP | $125.9M | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $480.0M | – | – |
| Nine months ended September 30, 2026 total operating expensesGAAP | $261.8M | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | $218.1M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $202.0M | – | – |
| Nine months ended September 30, 2026 basic earnings per shareGAAP | $1.87 | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $1.84 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenueStrong customer demand drove record product revenue. | $114.3M | 15% | 22% |
| Royalties revenueNo segment-specific driver was quantified. | $77M | – | – |
| Contract and other revenueNo segment-specific driver was quantified. | $27M | – | – |
2026 Fourth Quarter Outlook outlook
- Revenue$227 - $233
- Operating expensesGAAP operating costs and expenses of $143 million to $139 million; non-GAAP operating costs and expenses of $124 million to $120 million
- Tax rateGAAP tax rate of 17.5%; non-GAAP tax rate of 16%
- NoteProduct revenue: $127 - $133
- NoteRoyalties revenue: $68 - $74
- NoteContract and other revenue: $26 - $32
- NoteGAAP diluted earnings per share: $0.68 - $0.76
- NoteNon-GAAP diluted earnings per share: $0.84 - $0.92
- NoteInterest and other income: $6.5 million
- NoteDiluted share count: 109 million shares
- NoteExcludes stock-based compensation expense of $18.2 million, amortization of acquired intangible assets of $1.0 million and other one-time adjustments of ($0.2) million
- NoteForward-looking GAAP net income: $74.7 million to $82.9 million
- NoteForward-looking non-GAAP net income: $92.0 million to $100.4 million
Capital returns
- $135.4 million paid for repurchases of common stock.
What drove it
- Strong customer demand drove record product revenue.
- The company expanded product and IP offerings for next-generation AI systems, including PMIC for LPDDR6 SOCAMM2 and data center-class Root of Trust security IP.
- Management cited growing performance requirements of next-generation AI and data center infrastructure.
- Fourth-quarter revenue requires the company to sign customer agreements for various product sales and solutions licensing, among other matters.
Concerns
- Fourth-quarter revenue is not without risk and requires customer agreements for product sales and solutions licensing.
- Inventory was $87,235 thousand as of September 30, 2026, compared with $44,098 thousand as of December 31, 2025.
- Q4 2026 GAAP operating costs and expenses guidance is presented as $143 million to $139 million, and non-GAAP operating costs and expenses guidance as $124 million to $120 million.
What to watch
- Execution against Q4 2026 revenue guidance of $227 million to $233 million.
- Product revenue guidance of $127 million to $133 million, royalties revenue guidance of $68 million to $74 million, and contract and other revenue guidance of $26 million to $32 million.
- Q4 GAAP diluted earnings per share guidance of $0.68 to $0.76 and non-GAAP diluted earnings per share guidance of $0.84 to $0.92.
- Customer agreements needed to achieve the guided revenue range.
- Cash deployment after $135.4 million of common-stock repurchases and $11.2 million of capital expenditures in Q3.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities as of September 30, 2026 were $776.9 million, a decrease of $48.0 million as compared to June 30, 2026.
- Cash and cash equivalents were $110,531 thousand as of September 30, 2026 and $182,826 thousand as of December 31, 2025.
- Marketable securities were $666,376 thousand as of September 30, 2026 and $579,005 thousand as of December 31, 2025.
- Inventories were $87,235 thousand as of September 30, 2026 and $44,098 thousand as of December 31, 2025.
- Total assets were $1,558,232 thousand as of September 30, 2026 and $1,529,545 thousand as of December 31, 2025.
- Total current liabilities were $112,095 thousand as of September 30, 2026 and $120,574 thousand as of December 31, 2025.
- Long-term operating lease liabilities were $14,572 thousand as of September 30, 2026 and $18,671 thousand as of December 31, 2025.
- Long-term EDA tools software licenses liability was $9,053 thousand as of September 30, 2026 and $20,908 thousand as of December 31, 2025.
- Total stockholders’ equity was $1,417,731 thousand as of September 30, 2026 and $1,364,425 thousand as of December 31, 2025.
- $102.5 million cash provided by operating activities partially offset repurchases and capital expenditures.
- $11.2 million paid for capital expenditures.
Analysis
Rambus reported record Q3 2026 revenue of $218.3 million, up 22% year over year and above its $210 million to $216 million guidance range. Product revenue reached a record $114.3 million, up 15% quarter over quarter and 22% year over year. Royalties revenue was $77.0 million and contract and other revenue was $27.0 million. Management attributed the product result to strong customer demand.
Profitability advanced on both reported bases. GAAP operating income was $83.6 million and GAAP operating margin was 38 %, versus $63.3 million and 35 % in the prior-year quarter. Non-GAAP operating income was $102.2 million, with a 47 % operating margin, versus $79.2 million and 44 %. GAAP net income was $74.6 million, and non-GAAP net income was $91.7 million. GAAP diluted earnings per share of $0.69 and non-GAAP diluted earnings per share of $0.84 both exceeded the stated guidance range.
Cash generation was a further strength, with a record $102.5 million of cash from operating activities. Cash, cash equivalents, and marketable securities totaled $776.9 million at September 30, 2026, down $48.0 million from June 30, 2026. The company cited $135.4 million of common-stock repurchases and $11.2 million of capital expenditures as uses of cash, partly offset by operating cash generation. Inventory was $87,235 thousand at September 30, 2026, compared with $44,098 thousand at December 31, 2025.
The Q4 outlook calls for revenue of $227 million to $233 million, including 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. Guided GAAP diluted earnings per share is $0.68 to $0.76, while non-GAAP diluted earnings per share is $0.84 to $0.92. Management said it expects an even stronger Q4 performance, but specified that achieving the revenue range requires customer agreements for various product sales and solutions licensing.
The company is positioning its product and IP roadmap around next-generation AI and data center infrastructure. It highlighted expanded offerings including PMIC for LPDDR6 SOCAMM2 and data center-class Root of Trust security IP. The reported period combines higher revenue, expanded operating margin, record operating cash flow and continued repurchases, while Q4 execution remains tied to signing the required customer agreements.
Management, verbatim
Rambus delivered record quarterly revenue and earnings that exceeded our guidance, with strong customer demand driving record product revenue and record cash from operations.
Luc Seraphin, president and chief executive officer of Rambus
We continue to expand our product and IP offerings to address the growing performance requirements of next-generation AI and data center infrastructure.
Luc Seraphin, president and chief executive officer of Rambus
Through ongoing execution on our roadmap and accelerating demand for our differentiated solutions, we expect an even stronger performance in Q4 and are well positioned to deliver long-term profitable growth and value for our stockholders.
Luc Seraphin, president and chief executive officer of Rambus
Not in the filing
stated, not guessed- Previous-period outlook was not provided; no comparison of actual results with prior guidance is available.
- Q3 2026 GAAP gross margin was not printed.
- Q3 2026 non-GAAP gross margin was not printed.
- Prior-quarter values for Q3 income-statement metrics were not provided, except that product revenue was stated to be up 15% quarter over quarter.
- Free cash flow was not reported.
- Dividend amount or dividend policy was not reported.
- Traditional debt balance was not separately reported.
- Q4 gross-margin guidance was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.