PDF Solutions (NASDAQ:PDFS) Releases Earnings Results, Beats Expectations By $0.07 EPS

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

Shares of PDF Solutions stock traded up $1.34 during trading hours on Friday, reaching $35.86. The company’s stock had a trading volume of 346,100 shares, compared to its average volume of 576,114. PDF Solutions has a one year low of $23.55 and a one year high of $71.68. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.45 and a quick ratio of 3.45. The firm has a 50 day moving average price of $45.68 and a 200-day moving average price of $44.59. The stock has a market cap of $1.43 billion, a P/E ratio of 142.96 and a beta of 1.75.

Insider Buying and Selling at PDF Solutions

In related news, CTO Andrzej Strojwas sold 3,394 shares of the firm’s stock in a transaction 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 sale, the chief technology officer directly owned 90,965 shares in the company, valued at $4,039,755.65. This trade represents a 3.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Shuo Zhang sold 1,501 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $51.47, for a total transaction of $77,256.47. Following the completion of the sale, the director owned 23,380 shares of the company’s stock, valued at $1,203,368.60. This trade represents a 6.03% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 11.08% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Wells Fargo & Company dropped their price target on PDF Solutions from $50.00 to $39.00 and set an “equal weight” rating for the company in a research note on Friday. Weiss Ratings raised shares of PDF Solutions from a “sell (d+)” rating to a “hold (c)” rating in a report on Friday, August 21st. Needham & Company LLC initiated coverage on PDF Solutions in a research note on Friday, September 25th. They set a “buy” rating and a $60.00 price target for the company. Wall Street Zen cut PDF Solutions from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Morgan Stanley initiated coverage on shares of PDF Solutions in a research report on Tuesday, September 8th. They issued an “overweight” rating and a $62.00 price target for the company. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, PDF Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $58.17.

PDF Solutions News Summary

Here are the key news stories impacting PDF Solutions this week:

• Positive Sentiment: PDF Solutions reported third-quarter 2026 EPS of $0.40, beating analyst estimates of roughly $0.33–$0.34 and rising from $0.25 a year earlier. Revenue of $68.33 million also topped the $67.48 million consensus. These results may support the stock by showing better-than-expected performance. Zacks earnings report
• Positive Sentiment: Coverage of the earnings call characterized the quarter as featuring record revenue and expanding margins, potentially reinforcing the growth outlook; the supplied headline did not provide further figures. Q3 earnings call highlights
• Negative Sentiment: Wells Fargo cut its price target to $39 from $50 and maintained an “equal weight” rating. The lower target could temper optimism following the earnings beat, though it remains above the reference share price cited in the report. Wells Fargo recommendation information

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.