PDF Solutions (NASDAQ:PDFS) Releases Earnings Results

Key Points

• PDF Solutions beat quarterly estimates, reporting EPS of $0.40 versus the $0.33 consensus and revenue of $68.33 million versus $67.48 million expected.
• Q3 revenue reached a record $68.3 million, up 20% year over year, supported by platform growth and strong equipment-related activity.
• Management reaffirmed its 20% revenue growth target for 2026 and expects year-end backlog to exceed Q2’s $271 million, though some large contracts could be delayed into Q1.

PDF Solutions (NASDAQ:PDFS - Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.07, FiscalAI reports. PDF Solutions had a net margin of 4.27% and a return on equity of 7.21%. The company had revenue of $68.33 million for the quarter, compared to the consensus estimate of $67.48 million.

Here are the key takeaways from PDF Solutions' conference call:

• PDF Solutions posted record Q3 revenue of $68.3 million, up 20% year over year, driven by platform revenue growth and strong equipment-related activity. The equipment business now represents about 20% of revenue, with Cimetrix runtime licenses reaching a record.
• The company reaffirmed its 20% revenue growth target for 2026. Management said Q4 includes several large contract opportunities and expects year-end backlog to exceed Q2’s $271 million, though some deals could slip into Q1.
• Margins and earnings improved: gross margin was 77%, operating margin reached 28%, and non-GAAP EPS was $0.40, up 60% year over year. Management said product mix may affect near-term margins but reiterated its long-term margin targets.
• eProbe demand and use cases are broadening, with strong tool utilization, an eight-figure contract, and evaluations or deployments spanning logic, DRAM, and flash. Elevated capital spending is intended to support future builds, but management said production capacity and supplier execution remain factors.
• Exensio Aurora drew positive feedback in customer demonstrations, particularly for handling wide datasets and repeatable AI-generated workflows. However, management said it is too early to assess real-world performance or the revenue uplift from customer upgrades.

PDF Solutions Stock Performance

Shares of PDFS traded down $5.27 during mid-day trading on Thursday, reaching $34.52. 1,170,453 shares of the company's stock traded hands, compared to its average volume of 670,294. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.45 and a current ratio of 3.45. The business's 50-day moving average price is $45.68 and its 200-day moving average price is $44.59. The stock has a market capitalization of $1.38 billion, a P/E ratio of 75.07 and a beta of 1.75. PDF Solutions has a 12 month low of $23.55 and a 12 month high of $71.68.

Analyst Ratings Changes

PDFS has been the topic of several research reports. UBS Group reiterated a "neutral" rating on shares of PDF Solutions in a research note on Monday, September 21st. Royal Bank Of Canada downgraded PDF Solutions to an "outperform" rating in a research note on Tuesday, September 8th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $63.00 target price on shares of PDF Solutions in a research report on Friday, August 7th. DA Davidson cut their target price on PDF Solutions from $74.00 to $68.00 and set a "buy" rating on the stock in a research note on Monday, October 19th. Finally, Morgan Stanley began coverage on PDF Solutions in a research note on Tuesday, September 8th. They issued an "overweight" rating and a $62.00 target price on the stock. Six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $61.33.

Insider Buying and Selling

In related news, CTO Andrzej Strojwas sold 3,394 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $44.41, for a total value of $150,727.54. Following the completion of the transaction, the chief technology officer directly owned 90,965 shares of the company's stock, valued at $4,039,755.65. This represents a 3.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Shuo Zhang sold 1,501 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $51.47, for a total value of $77,256.47. Following the completion of the sale, the director owned 23,380 shares in the company, valued at approximately $1,203,368.60. This represents a 6.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 11.08% of the company's stock.

PDF Solutions Company Profile

PDF Solutions, Inc NASDAQ: PDFS provides software, analytics and engineering services for the semiconductor industry. Its solutions help chip manufacturers and their supply-chain partners collect, integrate and analyze data from design, wafer fabrication, assembly, packaging and testing operations.

The company's product portfolio includes the Exensio platform, which is designed to support semiconductor manufacturing analytics, yield improvement, quality management, test optimization and supply-chain visibility.

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