Rambus (RMBS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $207.4 million, up 20% year-over-year and 15% sequentially, surpassing guidance and driven by strong product and IP performance in AI and data center markets.

• Product revenue reached $99.2 million, up 22% year-over-year and 13% sequentially, with robust demand for memory interface chips and expanding offerings for next-gen AI platforms.

• Non-GAAP diluted EPS was $0.77, up 24% year-over-year and 21% sequentially, exceeding guidance; GAAP diluted EPS was $0.61.

• Expanded product and IP portfolio for AI, including DDR5 9600 chipsets, PCIe 7 Switch IP, and LPDDR5X SOCAMM2 server module chipset.

• Strong cash from operations at $61.2 million, supporting growth initiatives and a debt-free balance sheet.

Financial highlights

• Q2 2026 revenue: $207.4 million, up 20% year-over-year and 15% sequentially; product revenue: $99.2 million; royalties: $84.2 million; contract/other: $24 million.

• Non-GAAP net income: $84.4 million; GAAP net income: $67.6 million; non-GAAP EPS: $0.77; GAAP EPS: $0.61.

• Operating income: $93.7 million (non-GAAP), $72.7 million (GAAP); gross margin: 79.7%-80%.

• Cash, cash equivalents, and marketable securities: $824.9 million as of June 30, 2026.

• Operating cash flow: $61.2 million in Q2 2026; free cash flow: $49 million.

Outlook and guidance

• Q3 2026 revenue expected between $210 million and $216 million.

• Q3 product revenue guidance: $110–$116 million; royalties: $69–$75 million; contract/other: $25–$31 million.

• Q3 non-GAAP EPS expected between $0.75 and $0.82; GAAP EPS: $0.59–$0.67.

• Continued sequential growth in revenue and earnings per share anticipated.

• Q3 non-GAAP operating costs/expenses: $115–$119 million.