Rambus tops third-quarter guidance as product revenue hits a record $114.3 million

Rambus reported third-quarter 2026 revenue of $218.3 million on October 26, above the $210 million to $216 million range it had set in July, with non-GAAP diluted earnings of $0.84 a share and a fourth-quarter revenue outlook of $227 million to $233 million.

Rambus Inc. said revenue for the quarter ended September 30, 2026 rose 22% from $178.5 million a year earlier, and that GAAP diluted earnings per share of $0.69 compared with $0.44, while non-GAAP diluted earnings per share of $0.84 compared with $0.62. Both per-share measures cleared the ranges published with the second-quarter report, when the company guided non-GAAP diluted earnings per share to between $0.75 and $0.82 and GAAP to between $0.59 and $0.67.

Product revenue at a record as royalties step back

Product revenue reached a record $114.3 million, against $93.3 million in the third quarter of 2025 and $99.2 million in the second quarter of 2026 — up 22% year over year and 15% quarter over quarter on the company's own rounding. Royalties of $77.0 million compared with $65.1 million a year earlier; against the second quarter's $84.2 million, the line fell 8.55%. Contract and other revenue contributed $27.0 million, against $20.1 million. Rambus reports three revenue lines and does not tie the royalty move to any single agreement in the release; royalties are invoiced under licensing arrangements whose timing the document does not calendar.

A fourth-quarter guide set above the quarter just reported

The company guided fourth-quarter revenue to $227 million to $233 million, a midpoint of $230 million that is 5.4% above the $218.3 million just delivered. Product revenue is guided to $127 million to $133 million and royalties to $68 million to $74 million, the latter below the third quarter's $77.0 million. Non-GAAP diluted earnings per share are guided to $0.84 to $0.92, a midpoint of $0.88 that is 4.8% above the quarter reported, with GAAP at $0.68 to $0.76. The outlook assumes interest and other income of $6.5 million, a GAAP tax rate of 17.5%, a non-GAAP rate of 16% and 109 million diluted shares, and excludes stock-based compensation of $18.2 million, amortization of acquired intangible assets of $1.0 million and other one-time adjustments. The exhibit prints operating costs and expenses with the low figure first: $143 million to $139 million on a GAAP basis and $124 million to $120 million non-GAAP.

Cash, buybacks and the cost lines behind two EPS figures

Operating cash flow was a record $102.5 million, and cash, cash equivalents and marketable securities ended the quarter at $776.9 million, $48.0 million below June 30 after $135.4 million paid for repurchases of common stock and $11.2 million of capital expenditure. GAAP operating expenses rose to $87.3 million from $78.7 million and non-GAAP operating expenses to $70.0 million from $64.6 million. GAAP operating margin was 38%, against 35% a year earlier, and the non-GAAP margin 47% against 44%. GAAP net income was $74.6 million, against $48.4 million, and non-GAAP net income $91.7 million against $68.2 million. The reconciliation strips out stock-based compensation, amortization of acquired intangible assets, restructuring charges, facility closure costs and an income tax adjustment, which accounts for the $0.15 gap between the two per-share figures.

The open items the release does not close

The release attributes no cause to the sequential royalty decline, carries no segment detail or customer-level commentary, and states no market reaction to the numbers. Management scheduled a call for this afternoon at 2 p.m. PT, with slides at investor.rambus.com, where the fourth-quarter ranges meet their first questions. The next dated checkpoint is the fourth-quarter and full-year report, when the $227 million to $233 million revenue range and the $0.84 to $0.92 non-GAAP earnings range either hold or move.