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Netlist to Report Q3 Earnings: Will Strong Memory Demand Drive Growth?
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Key Takeaways
Netlist is set to report Q3 results on Nov. 10, with revenues expected to surge 630.8% to $308.6 million.
AI-driven memory demand, supply shortages and strong pricing are likely to have fueled NLST's Q3 growth.
Samsung's supply alliance and Micron's $600 million licensing deal mark key milestones for Netlist.
Netlist, Inc. (NLST - Free Report) will release results for the third quarter of 2026 on Nov. 10.
The Zacks Consensus Estimate for third-quarter earnings is set at 60 cents per share, unchanged in the past 60 days. The company has reported a loss of 2 cents per share in the year-ago quarter. The Zacks Consensus Estimate for revenues is pinned at $308.6 million, indicating a nearly 630.8% increase from the year-ago actual.
Image Source: Zacks Investment Research
NLST stock has gained 123.5% over the past six months, while the Computer-Storage Devices industry is down 21.8%. The S&P 500 composite has inched up 0.9% but the Zacks Computer and Technology sector is down 5.2%, in the same time frame.
Factors at Play for NLST’s Q3 Results
The third quarter is likely to have built upon the momentum seen in the first half of 2026. First-half 2026 revenues reached $214.7 million, roughly three times the prior-year level, while gross profit increased to $45.3 million, up 1,582%. Operating income came in at $9.9 million against a $16 million operating loss in the prior-year period. The top-line performance has benefited from memory supply issues and surging AI-driven demand, creating strong pricing tailwinds.
On the last earnings call, management noted that the memory market remains structurally undersupplied while demand remains steady. Moreover, supply constraints across the memory industry are expected to continue through next year.
Second-quarter revenues surged 163% to $109.8 million. Although management noted that much of revenues came from the resale of “difficult-to-source” DRAM products, the company has also been gaining traction with its Netlist-branded offerings.
NLST has been ramping up its Lightning portfolio (low-latency DDR5 RDIMM and UDIMM solutions).
The company continues to advance CXL NVDIMM and low-power MRDIMM solutions, both aimed at addressing AI-driven workload requirements around memory performance and capacity. On the last earnings call, NLST noted that its CXL NVvault solution is sampling with system-on-chip vendors, hyperscalers and key OEMs for next-generation hardware platforms.
On the last earnings call, management noted that it expects third-quarter product revenues to remain similar to the second-quarter level, based on booking and shipping trends.
However, Netlist faces tough competition in the semiconductor space. Also, increasing costs and reliance on third-party suppliers are concerns.
Key Recent Developments
Netlist's strategic agreement with Samsung, announced in August 2026, represents a significant development.
NLST's five-year strategic alliance with Samsung spans patent portfolio cross-licensing, memory product supply and technology cooperation. Under the terms, Samsung will have access to Netlist's complete patent portfolio, including server DIMM and HBM technologies. Netlist will get DRAM and NAND supply from Samsung. More importantly, both companies agreed to settle and mutually release all pending legal actions.
Under the licensing agreement, Samsung will pay Netlist an upfront fee of $200 million, alongside quarterly licensing fees of up to $27.5 million over 20 quarters, subject to certain adjustments. The accompanying supply agreement allows Netlist to purchase up to $300 million of DRAM and NAND products annually from Samsung each year for an aggregate of up to $1.5 billion during the five-year term of the agreement .
This alliance meaningfully alters NLST's risk profile. Previously, a meaningful part of the company’s investment case depended on the litigation outcome involving Samsung. The new alliance changes a contentious relationship into a long-term commercial partnership while giving Netlist access to memory supply from a major industry player.
Netlist also achieved a major intellectual property monetization milestone in October by entering into patent licensing and settlement agreements with Micron Technology The five-year licensing arrangement with Micron provides for $600 million in payments, beginning in the fourth quarter of 2026.
In October, Netlist also expanded its portfolio by launching next-generation LIGHTNING Ultra-Low Latency DDR5 RDIMMs for Agentic AI workstations and servers. The DDR5-6000 and DDR5-6400 products are designed to boost responsiveness in memory-sensitive AI and enterprise workloads.
Earnings Whispers for NLST
Our proven model does not predict an earnings beat for Netlist this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
NLST currently has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Telos is scheduled to report quarterly earnings on Nov. 9, 2026. The Zacks Consensus Estimate for TLS’ to-be-reported quarter’s earnings and revenues is pegged at 4 cents per share and $50 million, respectively. Shares of Telos have lost 22.8% in the past year.
Nebius Group N.V. (NBIS - Free Report) has an Earnings ESP of +50.82% and a Zacks Rank #2 at present. NBIS is scheduled to report quarterly figures on Nov. 12, 2026. The Zacks Consensus Estimate for Nebius’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 61 cents per share and $916.8 million, respectively. Shares of Nebius have risen 29.4% in the past year.
Angel Studios Inc (ANGX - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #2 at present. ANGX is scheduled to report quarterly figures on Nov. 10, 2026. The Zacks Consensus Estimate for Angel Studios’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 7 cents per share and nearly $146.1 million, respectively. Shares of Angel Studios are down 42.8% in the past year.
View the Zacks #1 Rank List
Image: Bigstock
Netlist to Report Q3 Earnings: Will Strong Memory Demand Drive Growth?
Key Takeaways
Netlist, Inc. (NLST - Free Report) will release results for the third quarter of 2026 on Nov. 10.
The Zacks Consensus Estimate for third-quarter earnings is set at 60 cents per share, unchanged in the past 60 days. The company has reported a loss of 2 cents per share in the year-ago quarter. The Zacks Consensus Estimate for revenues is pinned at $308.6 million, indicating a nearly 630.8% increase from the year-ago actual.
Image Source: Zacks Investment Research
NLST stock has gained 123.5% over the past six months, while the Computer-Storage Devices industry is down 21.8%. The S&P 500 composite has inched up 0.9% but the Zacks Computer and Technology sector is down 5.2%, in the same time frame.
Factors at Play for NLST’s Q3 Results
The third quarter is likely to have built upon the momentum seen in the first half of 2026. First-half 2026 revenues reached $214.7 million, roughly three times the prior-year level, while gross profit increased to $45.3 million, up 1,582%. Operating income came in at $9.9 million against a $16 million operating loss in the prior-year period. The top-line performance has benefited from memory supply issues and surging AI-driven demand, creating strong pricing tailwinds.
On the last earnings call, management noted that the memory market remains structurally undersupplied while demand remains steady. Moreover, supply constraints across the memory industry are expected to continue through next year.
Netlist, Inc. Revenue (Quarterly)
Netlist, Inc. revenue-quarterly | Netlist, Inc. Quote
Second-quarter revenues surged 163% to $109.8 million. Although management noted that much of revenues came from the resale of “difficult-to-source” DRAM products, the company has also been gaining traction with its Netlist-branded offerings.
NLST has been ramping up its Lightning portfolio (low-latency DDR5 RDIMM and UDIMM solutions).
The company continues to advance CXL NVDIMM and low-power MRDIMM solutions, both aimed at addressing AI-driven workload requirements around memory performance and capacity. On the last earnings call, NLST noted that its CXL NVvault solution is sampling with system-on-chip vendors, hyperscalers and key OEMs for next-generation hardware platforms.
On the last earnings call, management noted that it expects third-quarter product revenues to remain similar to the second-quarter level, based on booking and shipping trends.
However, Netlist faces tough competition in the semiconductor space. Also, increasing costs and reliance on third-party suppliers are concerns.
Key Recent Developments
Netlist's strategic agreement with Samsung, announced in August 2026, represents a significant development.
NLST's five-year strategic alliance with Samsung spans patent portfolio cross-licensing, memory product supply and technology cooperation. Under the terms, Samsung will have access to Netlist's complete patent portfolio, including server DIMM and HBM technologies. Netlist will get DRAM and NAND supply from Samsung. More importantly, both companies agreed to settle and mutually release all pending legal actions.
Under the licensing agreement, Samsung will pay Netlist an upfront fee of $200 million, alongside quarterly licensing fees of up to $27.5 million over 20 quarters, subject to certain adjustments. The accompanying supply agreement allows Netlist to purchase up to $300 million of DRAM and NAND products annually from Samsung each year for an aggregate of up to $1.5 billion during the five-year term of the agreement .
This alliance meaningfully alters NLST's risk profile. Previously, a meaningful part of the company’s investment case depended on the litigation outcome involving Samsung. The new alliance changes a contentious relationship into a long-term commercial partnership while giving Netlist access to memory supply from a major industry player.
Netlist, Inc. Price and EPS Surprise
Netlist, Inc. price-eps-surprise | Netlist, Inc. Quote
Netlist also achieved a major intellectual property monetization milestone in October by entering into patent licensing and settlement agreements with Micron Technology The five-year licensing arrangement with Micron provides for $600 million in payments, beginning in the fourth quarter of 2026.
In October, Netlist also expanded its portfolio by launching next-generation LIGHTNING Ultra-Low Latency DDR5 RDIMMs for Agentic AI workstations and servers. The DDR5-6000 and DDR5-6400 products are designed to boost responsiveness in memory-sensitive AI and enterprise workloads.
Earnings Whispers for NLST
Our proven model does not predict an earnings beat for Netlist this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
NLST currently has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Telos Corporation (TLS - Free Report) currently has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Telos is scheduled to report quarterly earnings on Nov. 9, 2026. The Zacks Consensus Estimate for TLS’ to-be-reported quarter’s earnings and revenues is pegged at 4 cents per share and $50 million, respectively. Shares of Telos have lost 22.8% in the past year.
Nebius Group N.V. (NBIS - Free Report) has an Earnings ESP of +50.82% and a Zacks Rank #2 at present. NBIS is scheduled to report quarterly figures on Nov. 12, 2026. The Zacks Consensus Estimate for Nebius’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 61 cents per share and $916.8 million, respectively. Shares of Nebius have risen 29.4% in the past year.
Angel Studios Inc (ANGX - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #2 at present. ANGX is scheduled to report quarterly figures on Nov. 10, 2026. The Zacks Consensus Estimate for Angel Studios’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 7 cents per share and nearly $146.1 million, respectively. Shares of Angel Studios are down 42.8% in the past year.