Rambus (RMBS) shares plummeted 15.74% during pre-market trading on Tuesday, as the stock experienced significant selling pressure.

The sharp decline followed the company's release of its fourth-quarter 2025 financial results and first-quarter 2026 guidance. While Rambus reported record Q4 revenue of $190.2 million, which exceeded expectations, and adjusted earnings per share in line with estimates, investors focused on the disappointing forward outlook. The company projected Q1 product revenue between $84 million and $90 million, which represents a potential sequential decline and falls below analyst forecasts of approximately $96.5 million. Furthermore, total Q1 revenue guidance of $171 million to $189 million came in below the consensus estimate of $189.30 million.

The market reaction overshadowed the positive Q4 performance, highlighting investor concerns over the company's near-term growth prospects. This sentiment was reflected in immediate analyst actions, including Susquehanna lowering its price target on the stock.