Rambus Posts Record Q3 Revenue as AI Demand Lifts Product Sales

Rambus (RMBS) reported record revenue and non-GAAP earnings for the third quarter of 2026, as demand from data center and artificial intelligence applications helped lift product revenue by 22% from a year earlier. The company also generated record operating cash flow and issued fourth-quarter revenue guidance of $227 million to $233 million.

Third-quarter revenue rose to $218.3 million from $178.5 million a year earlier and $207.4 million in the previous quarter, exceeding the company’s guidance. Product revenue reached a record $114 million, increasing 15% sequentially and 22% year over year.

Non-GAAP operating income climbed to $102.2 million from $79.2 million in the prior-year period, even as Rambus continued investing in its core growth initiatives. Non-GAAP operating costs and expenses increased to $116.1 million from $99.3 million a year earlier.

Non-GAAP net income was $91.7 million, compared with $68 million in the third quarter of 2025. Non-GAAP diluted earnings per share rose 35% year over year and 10% sequentially to $0.84.

On a GAAP basis, operating income was $83.7 million, net income totaled $74.6 million and diluted earnings per share were $0.69. The principal adjustments between GAAP and non-GAAP results included $17 million of stock-based compensation and $1 million of amortization of acquired intangible assets.

AI and Data Center Demand Support Product Growth

Rambus attributed its product revenue performance to data center and AI demand. During the quarter, the company expanded its chip and silicon intellectual-property offerings for next-generation AI systems, including a power-management integrated circuit for LPDDR6 SOCAMM2 and data center-class Root of Trust security IP.

Management said its broader portfolio is intended to improve performance for AI and other advanced workloads. The company plans to maintain focused investment in its product roadmap and patent portfolio as it pursues long-term profitable growth.

Cash from operations reached a record $102.5 million, up from $88.4 million a year earlier and $61.2 million in the second quarter. Rambus ended the period with $776.9 million in cash and marketable securities, down from $824.9 million at the end of the previous quarter.

The company returned $135 million to stockholders during the quarter, including a $100 million accelerated share repurchase. Rambus described its balance sheet as debt-free, with total assets of $1.56 billion and stockholders’ equity of $1.42 billion at quarter-end.

Fourth-Quarter Outlook

For the fourth quarter of 2026, Rambus expects both GAAP and non-GAAP revenue of $227 million to $233 million. The forecast includes 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.

GAAP diluted earnings per share are projected at $0.68 to $0.76, based on a 17.5% tax rate. Non-GAAP diluted earnings per share are expected to range from $0.84 to $0.92, assuming a 16% tax rate. The outlook uses a diluted share count of 109 million.

Rambus forecasts GAAP operating costs and expenses of $139 million to $143 million and non-GAAP costs and expenses of $120 million to $124 million. The non-GAAP estimate excludes $18 million of stock-based compensation and $1 million of acquired-intangible amortization.

The outlook remains subject to market challenges as well as geopolitical and macroeconomic uncertainty. Rambus also cautioned that expectations for industry growth, product launches, technology demand and investment strategies are based on current assumptions, and actual results could differ materially.