Rambus (NASDAQ:RMBS) Announces Quarterly Earnings Results

Rambus (NASDAQ:RMBS) released its quarterly earnings data on Monday. The semiconductor company reported $0.59 EPS for the quarter, missing the consensus estimate of $0.68 by ($0.09), Zacks reports. The business had revenue of $190.24 million during the quarter, compared to the consensus estimate of $188.21 million. Rambus had a return on equity of 17.73% and a net margin of 33.72%.

Here are the key takeaways from Rambus’ conference call:

• Rambus reported a record FY2025 with product revenue of $347.8M (up 41% YoY), total Q4 revenue of $190.2M, and a company-record $360M cash from operations, ending the quarter with $761.8M in cash and marketable securities.
• A one-time back-end manufacturing issue at an OSAT trimmed Q1 product revenue by a low double-digit million dollars; the root cause has been identified, affected inventory is being retested, and management expects product growth to resume in Q2.
• Rambus expanded its DDR5 RCD market share to the mid-40% range and is ramping companion chips (notably PMICs), with new products growing from low-single-digit contributions to upper-single-digits in Q4 and expected to reach double-digit contribution levels.
• Silicon IP momentum remains strong—design wins for HBM4, GDDR7, PCIe 7 and security IP—and the company reiterated it expects to grow faster than the market in 2026 while guiding Q1 non-GAAP revenue of $172M–$178M and EPS of $0.56–$0.64.

Rambus Stock Down 15.6%

RMBS traded down $17.76 on Tuesday, hitting $95.95. The company had a trading volume of 7,114,246 shares, compared to its average volume of 2,768,123. The company has a market cap of $10.33 billion, a PE ratio of 45.60 and a beta of 1.53. The business’s fifty day simple moving average is $101.06 and its 200 day simple moving average is $92.70. Rambus has a 12-month low of $40.12 and a 12-month high of $135.75.

Rambus News Roundup

Here are the key news stories impacting Rambus this week:

• Positive Sentiment: Q4 results showed growth and strong cash generation — revenue rose ~18% y/y to $190.2M, gross and operating margins improved, and operating cash flow was robust, supporting the company’s longer?term investment plans. Business Wire: Q4 Results
• Positive Sentiment: Product and licensing performance was a bright spot — product revenue and licensing increased significantly (products +35%, licensing +23% cited in coverage), reinforcing Rambus’ exposure to AI/datacenter memory and interconnect demand. QuiverQuant: Q4 Highlights
• Neutral Sentiment: Analyst stance is mixed but generally constructive — some firms reaffirm buy/outperform ratings and price targets remain well above current levels (examples: Rosenblatt $130 PT), suggesting many investors see the pullback as a dip-buy opportunity. Benzinga: Analyst Notes
• Neutral Sentiment: Quarterly transcripts and calls detail factors behind the numbers; investors should read management commentary for timing of supply fixes and expected Q2 recovery. MSN: Earnings Call Transcript
• Negative Sentiment: Soft Q1 2026 guidance was the main catalyst — revenue guide came in below Street expectations and EPS guidance was lighter, prompting the sell-off as the market focuses on near?term topline softness. Investors.com: Soft Q1 Guidance
• Negative Sentiment: Management flagged supply-chain bottlenecks and related execution risk that could limit the company’s ability to meet demand in the near term — several reports highlight supply risks as a key reason for the stock drop. Seeking Alpha: Supply Risks
• Negative Sentiment: EPS missed consensus for the quarter (reported EPS below estimates) which, together with the cautious guidance, amplified investor concern despite otherwise healthy revenue and cash metrics. Investing.com: In-line/eps miss coverage

Insider Buying and Selling at Rambus

In other Rambus news, Director Eric B. Stang sold 4,000 shares of the company’s stock in a transaction on Monday, November 10th. The stock was sold at an average price of $111.78, for a total value of $447,120.00. Following the transaction, the director owned 20,394 shares of the company’s stock, valued at $2,279,641.32. This represents a 16.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 1.00% of the company’s stock.

Hedge Funds Weigh In On Rambus

A number of hedge funds have recently added to or reduced their stakes in the stock. Coldstream Capital Management Inc. increased its holdings in Rambus by 2.2% in the 3rd quarter. Coldstream Capital Management Inc. now owns 5,703 shares of the semiconductor company’s stock valued at $594,000 after purchasing an additional 125 shares in the last quarter. IFP Advisors Inc grew its stake in shares of Rambus by 126.7% in the third quarter. IFP Advisors Inc now owns 442 shares of the semiconductor company’s stock valued at $47,000 after buying an additional 247 shares in the last quarter. Thrivent Financial for Lutherans raised its holdings in shares of Rambus by 1.2% during the 2nd quarter. Thrivent Financial for Lutherans now owns 25,291 shares of the semiconductor company’s stock valued at $1,619,000 after buying an additional 303 shares during the period. Gould Capital LLC lifted its position in Rambus by 1.8% during the 2nd quarter. Gould Capital LLC now owns 17,392 shares of the semiconductor company’s stock worth $1,113,000 after acquiring an additional 312 shares in the last quarter. Finally, Private Advisor Group LLC boosted its holdings in Rambus by 5.0% in the 3rd quarter. Private Advisor Group LLC now owns 6,727 shares of the semiconductor company’s stock worth $701,000 after acquiring an additional 320 shares during the period. 88.54% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts recently weighed in on RMBS shares. Susquehanna reduced their target price on shares of Rambus from $100.00 to $90.00 and set a “neutral” rating on the stock in a report on Tuesday. Cfra Research lowered Rambus from a “hold” rating to a “moderate sell” rating in a research report on Monday, December 15th. Evercore ISI lowered their price objective on Rambus from $126.00 to $119.00 and set an “outperform” rating for the company in a research report on Tuesday. Wells Fargo & Company increased their price objective on Rambus from $73.00 to $115.00 and gave the company an “overweight” rating in a research note on Tuesday, October 28th. Finally, William Blair initiated coverage on shares of Rambus in a report on Thursday, January 22nd. They set an “outperform” rating for the company. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $105.71.

About Rambus

Rambus Inc is a technology licensing company specializing in semiconductor and system-level interface solutions. Founded in 1990 by Stanford University researchers Mike Farmwald and Mark Horowitz, Rambus established its headquarters in Sunnyvale, California. The company initially gained prominence by developing high-speed DRAM interface technology and securing a broad patent portfolio covering memory architecture, data signaling and power management innovations.

Today, Rambus licenses its proprietary intellectual property (IP) to semiconductor companies, original equipment manufacturers (OEMs) and system integrators worldwide.