Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 27, 2026 · Beat 3 of last 4 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Rambus's record quarter and raised product guidance underscore the accelerating demand for memory interface chips as AI infrastructure scales, particularly with the rise of agentic AI driving CPU-based server growth. The company's expanding roadmap—including DDR5-9600, MRDIMM, and SOCAMM2 chipsets—positions it to capture higher content per module as next-generation platforms ramp. Supply chain tightness and inventory building signal a robust demand environment for the broader AI memory subsystem buildout.
Rambus delivered record revenue of $207.4M and non-GAAP EPS of $0.77, beating the high end of guidance. Product revenue hit a record $99.2M, up 22% YoY, driven by DDR5 RCD leadership and growing traction in new products. The company expanded its DDR5 roadmap with chipsets for DDR5-9600 client and server modules, and announced a design win with a Tier 1 U.S. hyperscaler for next-generation HBM IP. Management noted no capacity issues in Q2 but saw increasing lead times, and they built $16M of inventory to support future ramps. They also announced a change in financial reporting, discontinuing the licensing billings metric as the difference with royalties revenue is now minimal.
Management guided Q3 revenue to $210M-$216M, with product revenue of $110M-$116M (up 14% sequentially at midpoint) and non-GAAP EPS of $0.75-$0.82. They expect continued double-digit product revenue growth and a stronger second half than first half, driven by DDR5 sub-generation ramps, growing companion chip contributions, and the initial ramp of MRDIMM. Management reiterated confidence in the silicon IP business growing 10%-15% annually, citing deep engagements with hyperscalers ahead of standards. They highlighted supply chain tightness and lengthening lead times as a key constraint, noting they are building strategic inventory to support Q3, Q4, and early 2027 ramps. They expect MRDIMM contribution to be minimal in Q4 and more material in 2027 when both platforms from the CPU guys ramp in the market in earnest.
“We continue to see tightness, in the supply chain. We continue to see lead times increasing, but we did not have any capacity issue in Q2.”
on Supply chain
“We do not see any signs of our customers building inventory, for the concerns that you expressed. This said, however, we are building some inventory on critical products that we believe are going to ramp you know, in Q3, Q4, and early next year as we do see our lead times lengthening, you know, given the tightness in the supply chain.”
on Inventory strategy
“We continue to see, you know, that business growing 10% to 15% a year. I would say that this is another business where our confidence in that number is continuing to build.”
on Silicon IP growth
Did you have any capacity issues during the quarter? Any orders you were not able to meet?
No capacity issues in Q2. We continue to see tightness and increasing lead times, but we have strong supplier relationships and are able to serve market demand.
Could you update us on your expectation for MRDIMM ramp? AMD is in production with Venice CPU today. Are you getting better visibility into how much of the market will go MRDIMM versus traditional RDIMMs?
We continue to see MRDIMM as a material opportunity, but timing depends on platform adoption. Contribution in Q4 will be minimal; more material contribution is expected in 2027 when both CPU platforms ramp in earnest.
As you think about MRDIMMs juxtaposed with CXL, what is the company's view on CXL now that Meta has endorsed the technology?
We are very supportive of CXL as an important interconnect protocol, especially for agentic AI memory management. It remains relevant to our silicon IP business, but at the product level we see a fragmented, ASIC-like market. We will continue to enable the ecosystem through IP and focus product investments on standard products.