Oct 26, 2026 earnings call — Record quarter driven by product growth and AI demand
Rambus reported record quarterly revenue of $218 million and record product revenue of $114 million.
Revenue $0.2B (est $0.2B) · EPS $0.84 (est $0.79)
Key quotes
"We are seeing strong demand across multiple generations of RCDs, supporting our outlook for another record quarter of product revenue in Q4, which we expect to grow more than 30% year-over-year."
"The strength of those wins, combined with expanding strategic engagement across the industry, including custom silicon makers and hyperscalers, reinforces our confidence in the long-term growth opportunity for the silicon IP business and for Rambus."
"Record cash flow from operations of $102 million were offset by $135 million of share repurchases, including the $100 million accelerated share repurchase program."
Analyst Q&A 6
Which products drove revenue growth
Q (Kevin Garrigan · Jefferies): Analyst asked how much of Q3/Q4 growth came from companion chip ramps versus MRDIMM shipments. He also asked what is different this MRDIMM generation that could let the company lead the market.
A: Management said growth came from a mix of higher market demand and product ramps, with new RCD generations making the bulk of the growth. They said companion chips were about a low double-digit percentage of product revenue and growing sequentially, while MRDIMM shipments remain very modest with Qual and preproduction activity and AMD starting to ramp. They also said the MRDIMM ramp will be shallower than prior RCD ramps because platforms are not ramping together and memory economics reduce module capacity.
"At the beginning of the year, we said that our companion chips were approximately low double-digit percentage of our product revenue and that it would grow sequentially quarter-over-quarter." — Luc Seraphin (CEO)
Seasonality and silicon IP outlook
Q (Gary Mobley · StoneX): Analyst asked whether the first half was atypical versus seasonal and about visibility into product demand for the first half next year. He also asked for confirmation on silicon IP size and whether custom ASIC work could lead to long-term development deals.
A: Management said the second half is seasonally strong and they see demand strengthening into 2027 with better backlog visibility, so they expect seasonality to continue but overall healthy demand. On silicon IP, they said they are more engaged with the ecosystem and building capabilities, and that the silicon IP business is around $130 million growing at 10% to 15% with confidence trending toward the higher end of that range.
"So yes, so we've said our silicon IP business around $130 million, growing at 10% to 15%." — Sumeet Gagneja (CFO)
SOCAMM2 content and margins
Q (Sebastien Cyrus Naji · William Blair): Analyst asked how the new LPDDR6 PMIC and SOCAMM2 change dollar content per module versus the SOCAMM1 design and when initial revenue might start. He also asked Sumeet to break down Q3 product gross margin gap and Q4 margin outlook.
A: Management said they would be discreet on exact SOCAMM2 content until final specs, but that SOCAMM2 increases content and power management complexity versus the first generation and will improve module performance. They said SOCAMM2 will likely hit the market in 2028 and that it targets a niche portion of AI infrastructure with adoption that will not be fast. On margins, management said product gross margins have historically been in a tight band (60% to 63%), near-term pressure is mainly from supply chain input costs, and Q4 may see a slight uptick but should remain within that 60% to 63% range with 2026 landing near the middle.
"The SOCAMM2 will hit the market probably in 2028." — Luc Seraphin (CEO)
Lead times and inventories
Q (Mark Lipacis · Evercore): Analyst asked about supplier lead times, any tightening at foundries or OSATs, whether the company is stretching lead times to customers, and whether downstream customers are building inventories.
A: Management said supply-side lead times are increasing but they anticipated this and used their balance sheet to build inventory and mitigate the impact. They said longer supply lead times have not affected Q3 and will not affect Q4, and they have not increased lead times to their customers so far. They also said they see customers placing backlog earlier rather than building inventory, so visibility into backlog has improved.
"Yes, definitely longer lead times on the supply side, but it has not impacted our Q3 number, and it will not impact the Q4 number that we just talked about." — Luc Seraphin (CEO)
Supply confidence and content differences
Q (Tristan Gerra · Baird): Analyst asked how confident the company is that it can meet accelerating demand next year and whether supply will be an issue again. He also asked how content opportunity differs between x86 CPU servers and SOCAMM2/head-node deployments.
A: Management said they see demand strengthening into 2027 and are already working weekly with supply partners to meet requirements, but they expect supply to remain tight and will use the same early actions as in 2026. On content, they said SOCAMM and LP target head nodes and are complementary to standard DIMM servers; the majority of growth will come from CPUs with standard memory subsystems while head nodes will drive new technologies like SOCAMM.
"We see demand strengthening into next year, and we started to work with our supply chain partners to meet what we believe is going to be required." — Luc Seraphin (CEO)
IP engagements and inventory plans
Q (Kevin Cassidy · Rosenblatt): Analyst asked whether earlier silicon IP engagement helps win more module business on those designs. He also asked if days of inventory are comfortable or will continue to increase as demand rises.
A: Management said silicon IP engagements give them insight into customers' architectural trends and where DIMM or LP will be used, which helps shape their product roadmap. On inventory, they said they grew inventory by $12 million in Q3 using their balance sheet to assure customers and plan to increase inventory again in Q4 at a similar level to Q2 and Q3 as demand accelerates.
"In Q3, we grew it again $12 million, again, primarily leveraging the strength of our balance sheet to make sure we provide greater assurance to our customers." — Sumeet Gagneja (CFO)