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    Why Rambus (RMBS) Is Down 5.9% After Detailing Q4 Results And 2026 Revenue Mix Guidance

    Simply Wall St·02/07/2026 10:08:50
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    • Rambus Inc. has reported past fourth-quarter 2025 results showing revenue of US$190.24 million and net income of US$63.84 million, alongside full-year 2025 revenue of US$707.63 million and net income of US$230.46 million.
    • The company also issued first-quarter 2026 guidance that breaks out expected licensing, royalty, product, and contract revenues, offering investors a detailed look at its anticipated revenue mix.
    • With this fresh earnings report and granular revenue guidance, we’ll now examine what these developments mean for Rambus’s investment narrative.

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    What Is Rambus' Investment Narrative?

    To own Rambus, you need to be comfortable with a business built on a mix of licensing, royalties and higher-margin products, where execution on customer agreements really matters. The latest quarter and full-year numbers show the company operating profitably, and the new Q1 2026 guidance gives a clearer line of sight into how each revenue stream might contribute in the near term. That detail slightly sharpens the short term catalysts around design wins, renewals and product uptake, because management has now framed expectations more precisely. At the same time, the shares already trade on a rich earnings multiple, after a very strong multi-year run, so any shortfall against that guidance or delay in closing deals could quickly shift sentiment. This earnings update therefore reinforces, rather than removes, the execution and valuation risks already in focus.

    However, one key risk now stands out even more clearly for prospective shareholders. Rambus' share price has been on the slide but might be up to 46% below fair value. Find out if it's a bargain.

    Exploring Other Perspectives

    RMBS 1-Year Stock Price Chart
    RMBS 1-Year Stock Price Chart
    Five Simply Wall St Community fair value views span roughly US$50 to US$120 per share, reflecting very different expectations. Set against Rambus’s rich earnings multiple and guidance tied to closing new agreements, it underlines why you should weigh several viewpoints before forming your own stance.

    Explore 5 other fair value estimates on Rambus - why the stock might be worth as much as 12% more than the current price!

    Build Your Own Rambus Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.