Rambus, Inc. (NASDAQ:RMBS) shares are trading lower Tuesday after the company reported worse-than-expected first-quarter adjusted earnings per share. Also, Baird downgraded its rating on the stock from Outperform to Neutral and maintained its $120 price target.

Q1 Highlights

Rambus reported adjusted earnings per share of 63 cents, missing the consensus estimate of 64 cents. In addition, it posted revenue of $180.18 million, beating the consensus estimate of $177.92 million and representing a 15% year-over-year growth.

"Rambus opened 2026 with a solid first quarter, delivering financial results in line with guidance and generating strong cash from operations," said CEO Luc Seraphin

The company generated $83.2 million in cash from operating activities during the quarter. 

Cash, cash equivalents, and marketable securities totaled $786.1 million as of March 31, 2026. 

Rambus expects second-quarter adjusted revenue from $190.00 million to $208.00 million, versus the consensus estimate of $196.20 million.

Rambus Shares Fall

RMBS Price Action: At the time of publication, Rambus shares are trading 18.26% lower at $115.50, according to data from Benzinga Pro.

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