Rambus (RMBS) Q3 FY2026 Earnings Call: Record Revenue and Strong Q4 Product Outlook
Source Tradingkey
Key Takeaways
- Rambus reported record Q3 FY2026 revenue of $218 million, up 22% year over year and 5% sequentially, exceeding the top end of the company’s guidance.
- Product revenue reached a record $114 million, rising 22% year over year and 15% sequentially, driven primarily by DDR5 RCD demand and adoption of newer product generations.
- Non-GAAP net income was $91.7 million, while non-GAAP diluted EPS increased 35% year over year and 10% sequentially to $0.84.
- Record operating cash flow of $102 million supported investment in inventory and shareholder returns. Rambus repurchased $135 million of shares, including a $100 million accelerated share repurchase.
- Management guided Q4 revenue to $227 million-$233 million and product revenue to $127 million-$133 million. At the midpoint, product revenue would grow 34% year over year and 14% sequentially.
- Management said demand is strengthening into 2027, although supplier lead times are increasing and supply is expected to remain tight.
Core Financial Results
| Metric | Q3 FY2026 | Change / Commentary |
|---|---|---|
| Revenue | $218 million | Up 22% YoY and 5% sequentially |
| Product revenue | $114 million | Up 22% YoY and 15% sequentially; quarterly record |
| Royalties revenue | $77 million | Includes part of Silicon IP revenue |
| Contract and other revenue | $27 million | Up 35% YoY and 13% sequentially |
| Non-GAAP operating costs, including cost of goods sold | $116 million | — |
| Operating expenses | $70 million | Down sequentially on lower R&D and SG&A expenses |
| Interest and other income | $7 million | — |
| Non-GAAP net income | $91.7 million | Based on a 16% non-GAAP tax rate |
| Non-GAAP diluted EPS | $0.84 | Up 35% YoY and 10% sequentially |
| Operating cash flow | $102 million | Quarterly record |
| Cash, cash equivalents and marketable securities | $777 million | Down $48 million from Q2 |
| Share repurchases | $135 million | Included a $100 million accelerated share repurchase |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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