PDF Solutions (NASDAQ:PDFS) Announces Quarterly Earnings Results

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

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 Price Performance

PDFS stock traded down $5.27 on Thursday, hitting $34.52. 1,170,453 shares of the company’s stock traded hands, compared to its average volume of 670,294. PDF Solutions has a 1-year low of $23.55 and a 1-year high of $71.68. The stock has a market cap of $1.38 billion, a price-to-earnings ratio of 75.07 and a beta of 1.75. The stock has a fifty day moving average of $45.68 and a 200-day moving average of $44.59. The company has a current ratio of 3.45, a quick ratio of 3.45 and a debt-to-equity ratio of 0.17.

Insider Buying and Selling

In other PDF Solutions news, Director Shuo Zhang sold 1,501 shares of the company’s stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $51.47, for a total value of $77,256.47. Following the transaction, the director owned 23,380 shares of the company’s stock, valued at approximately $1,203,368.60. This represents a 6.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Andrzej Strojwas sold 3,394 shares of the stock in a transaction on Monday, August 31st. The shares were sold at an average price of $44.41, for a total value of $150,727.54. Following the sale, the chief technology officer owned 90,965 shares of the company’s stock, valued at $4,039,755.65. This trade represents a 3.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 11.08% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently issued reports on PDFS. Wall Street Zen cut shares of PDF Solutions from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Royal Bank Of Canada cut PDF Solutions to an “outperform” rating in a report on Tuesday, September 8th. Needham & Company LLC initiated coverage on PDF Solutions in a research report on Friday, September 25th. They issued a “buy” rating and a $60.00 target price for the company. Sanford C. Bernstein initiated coverage on PDF Solutions in a research note on Tuesday, August 11th. They set an “outperform” rating and a $65.00 price target for the company. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $63.00 price target on shares of PDF Solutions in a research note on Friday, August 7th. Six research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $61.33.

About PDF Solutions

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.