Highlights

  • Third quarter 2026 revenue was $218.3 million, operating income was $83,652 thousand and net income was $74,565 thousand.
  • Diluted net income per share was $0.69, and net cash provided by operating activities was $102.5 million in the quarter.
  • Management guided fourth quarter revenue to between $227 million and $233 million, and product revenue to between $127 million and $133 million.
  • Fourth quarter non-GAAP earnings per share are expected in the range from $0.84 to $0.92, assuming a 16% non-GAAP tax rate.

Rambus Inc. (NASDAQ: RMBS) shares were trading at USD 88.05 on October 27, 2026, down 2.51%, with a relative volume at time of 2.30. The semiconductor company entered a new share repurchase plan on September 10, 2026, effective October 1, 2026, and on October 26, 2026 filed its Form 10-Q for the quarter ended September 30, 2026, with fourth quarter guidance given by management on its earnings call.

Rambus is incorporated in Delaware and lists its principal executive offices in San Jose, California. It provides chips and silicon IP for data-intensive computing systems, focusing on data center and artificial intelligence infrastructure. Its consolidated revenue comes from product revenue, royalties revenue and contract and other revenue. Product revenue consists primarily of memory interface chips sold to DRAM manufacturers, system manufacturers and cloud providers.

Third Quarter 2026 Results

Revenue was $218.3 million for the quarter ended September 30, 2026. The table shows total revenue of $218,289 thousand, compared with $178,513 thousand in the third quarter of 2025. Product revenue was $114,315 thousand, compared with $93,342 thousand. Royalties revenue was $76,958 thousand, compared with $65,120 thousand, and contract and other revenue was $27,016 thousand, compared with $20,051 thousand.

Gross profit was $170,914 thousand, compared with $141,921 thousand. Total operating expenses were $87,262 thousand, compared with $78,666 thousand, including sales, general and administrative expenses of $37,684 thousand, compared with $29,155 thousand. The company said the increase in sales, general and administrative expenses was primarily due to higher professional fees of $5.2 million, stock-based compensation of $1.8 million and payroll-related expenses of $1.1 million.

Operating income was $83,652 thousand, compared with $63,255 thousand. The provision for income taxes was $15,970 thousand, compared with $20,911 thousand. Net income was $74,565 thousand, compared with $48,377 thousand. Diluted net income per share was $0.69. On the call, management reported non-GAAP diluted EPS of $0.84.

For the nine months ended September 30, 2026, revenue was $605,863 thousand, compared with $517,386 thousand, and net income was $202,028 thousand, compared with $166,615 thousand.

Cash Flow and Capital

Net cash provided by operating activities was $102.5 million in the third quarter and $246.9 million for the nine months ended September 30, 2026. Cash used in financing activities was $201.5 million for the nine months, including $138.3 million for share repurchases and $55.4 million for taxes related to net share settlement of equity awards.

Cash and cash equivalents were $110,531 thousand and marketable securities were $666,376 thousand. During the nine months, the company repurchased approximately 1.5 million shares under its 2020 Repurchase Program, including a $100.0 million accelerated share repurchase program. As of September 30, 2026, an authorization to repurchase approximately 4.1 million shares remained outstanding.

The company reported that it has a high degree of revenue concentration. Its top five customers represented approximately 64% of consolidated revenue for the three months ended September 30, 2026, compared with 67% a year earlier. Revenue from companies headquartered outside the United States was approximately 82% of consolidated revenue for the quarter. The 10-Q states that Rambus is not currently a party to any material pending legal proceeding.

Fourth Quarter 2026 Outlook

On the call, management said it expects fourth quarter revenue between $227 million and $233 million, product revenue between $127 million and $133 million, royalties revenue between $68 million and $74 million, and contract and other revenue between $26 million and $32 million.

Management said it expects fourth quarter non-GAAP operating profit between $103 million and $113 million, capital expenditures of approximately $8 million, and interest and other income of approximately $6.5 million. Assuming a non-GAAP tax rate of 16% and 109 million diluted shares outstanding, it expects fourth quarter non-GAAP earnings per share in the range from $0.84 to $0.92. Management said the guidance reflects its estimates and that actual results could differ materially.