Rambus Q4 revenue up 18%, adjusted EPS meets expectations

Overview

• Chip and IP provider's Q4 revenue grew 18% yr/yr, driven by DDR5 RCDs

• Adjusted EPS met analysts' expectations

• Company generated record $99.8 mln cash from operations in Q4

Outlook

• Rambus expects Q1 2026 licensing billings between $66 mln and $72 mln

• Company projects Q1 2026 product revenue between $84 mln and $90 mln

• Rambus anticipates Q1 2026 operating costs between $121 mln and $117 mln

Result Drivers

• PRODUCT REVENUE GROWTH - Record quarterly product revenue of $96.8 mln, driven by DDR5 RCDs and new products

• CASH FROM OPERATIONS - Generated record quarterly cash from operations of $99.8 mln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Rambus Inc is $120.00, about 5.4% above its January 30 closing price of $113.83

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release: ID:nBw5nQNpQa

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