PDF Solutions (NASDAQ:PDFS) Posts Earnings Results, Beats Estimates By $0.07 EPS

PDF Solutions (NASDAQ:PDFS) posted its quarterly earnings data on Thursday. The technology company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $68.33 million during 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 Stock Performance

Shares of PDFS traded down $5.27 during trading hours on Thursday, reaching $34.52. 1,170,453 shares of the company traded hands, compared to its average volume of 670,294. The company has a quick ratio of 3.45, a current ratio of 3.45 and a debt-to-equity ratio of 0.17. The business has a fifty day moving average price of $45.68 and a 200-day moving average price of $44.59. PDF Solutions has a 12-month low of $23.55 and a 12-month high of $71.68. The stock has a market capitalization of $1.38 billion, a P/E ratio of 138.08 and a beta of 1.75.

Insiders Place Their Bets

In related news, Director Shuo Zhang sold 1,501 shares of the firm’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 completion of the transaction, the director owned 23,380 shares in the company, valued at $1,203,368.60. This trade represents a 6.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Andrzej Strojwas sold 3,394 shares of PDF Solutions stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $44.41, for a total value of $150,727.54. Following the sale, the chief technology officer directly owned 90,965 shares of the company’s stock, valued at approximately $4,039,755.65. This represents a 3.60% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 11.08% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on PDFS shares. Sanford C. Bernstein assumed coverage on PDF Solutions in a research note on Tuesday, August 11th. They issued an “outperform” rating and a $65.00 price target for the company. Morgan Stanley began coverage on PDF Solutions in a report on Tuesday, September 8th. They issued an “overweight” rating and a $62.00 price target for the company. Rosenblatt Securities restated a “buy” rating and set a $63.00 price target on shares of PDF Solutions in a research note on Friday, August 7th. Wall Street Zen downgraded shares of PDF Solutions from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Royal Bank Of Canada lowered shares of PDF Solutions to an “outperform” rating in a research report on Tuesday, September 8th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, PDF Solutions has a consensus rating of “Moderate Buy” and a consensus target price 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.