Earnings call transcript: eMemory Q3 2026 misses forecasts as stock slips

eMemory Technology reported strong earnings in Q3 2026, surpassing revenue growth from the previous quarter but falling slightly short of analyst expectations for profit and revenue. The company's earnings per share stood at $8.55, just below the $8.68 forecast, while revenue reached $1.21 billion, trailing the $1.23 billion estimate.

Despite the modest miss, operating margin expanded to 63.2%, driven by robust operating leverage and disciplined spending. Revenue grew by 27.1% year-over-year and 10.4% sequentially, highlighting the increasing demand for eMemory's security intellectual property (IP). Security-related revenue more than doubled compared to a year ago, becoming a significant growth driver.

The company's shift towards larger, high-value advanced-node projects resulted in fewer tape-outs, which management attributed to a trend toward hardware-rooted trust and security features integrated directly into chips. This strategic shift has helped offset a decline in the number of product tape-outs. The stock saw a decline of 2.65% in early trading, closing at $2,205, down from the previous close of $2,275.