This Mid-Cap Stock Rambus Is Nosediving More Than 15% Today After Hours – Here’s Why

The company projected its Q1 2026 revenue below analyst estimates, according to data from fiscal.ai.

• The company on its Q1 2026 revenue projection said that it is not without risk and achieving revenue in this range will require it to sign customer agreements for various product sales and solutions licensing.
• The company expects revenue in its first quarter of 2026 to be between $171 million and $189 million, the mid of the range misses Wall Street estimates. 
• The company posted fourth quarter revenue of $190.2 million, which edged past Wall Street estimates of $188 million, according to data from fiscal.ai.

Shares of Rambus (RMBS) slumped more than 15% during extended hours of trading on Monday after it reported its fourth quarter results. 

The company expects revenue in its first quarter of 2026 to be between $171 million and $189 million, the mid of the range misses Wall Street estimates. Analysts on average had expected a revenue of $189.71 million. 

“Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters,” the company said in its earnings statement. 

The company expects adjusted operating costs and expenses to be between $104 million and $100 million. 

Q4 Earnings Edge Above Estimates

The company posted fourth quarter revenue of $190.2 million, which edged past Wall Street estimates of $188 million, according to data from fiscal.ai.

The company posted adjusted diluted net income per share of $0.68, in line with analyst estimates of $0.68 per share. 

“2025 was a record-breaking year for Rambus, delivering strong growth in revenue and earnings, and new quarterly and annual highs for product revenue and cash from operations,” said Luc Seraphin, president and chief executive officer of Rambus.

“Our sustained leadership in DDR5 RCDs and growing contributions from new products drove substantial year-over-year product growth. With a robust roadmap and deep expertise aligned to the secular trends transforming data center and AI, we are well positioned to meet industry needs and drive long-term profitable growth,” he added. 

The company also generated $99.8 million in cash from operating activities in the fourth quarter.

How Did Stocktwits Users’ React?

Retail sentiment around RMBS trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

One user called the results ‘terrible earnings’. 

Shares in the company have risen 91% over the past 12 months.