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

PDF Solutions (NASDAQ:PDFS) issued its quarterly earnings data on Thursday. The technology company reported $0.40 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 business 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

PDF Solutions stock traded up $3.09 during trading on Friday, reaching $37.61. The company had a trading volume of 1,121,854 shares, compared to its average volume of 635,885. The firm has a market capitalization of $1.50 billion, a PE ratio of 98.98 and a beta of 1.75. The firm’s 50-day simple moving average is $45.51 and its 200 day simple moving average is $44.60. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.45 and a current ratio of 3.45. PDF Solutions has a 1-year low of $23.55 and a 1-year high of $71.68.

Analysts Set New Price Targets

A number of analysts recently issued reports on PDFS shares. Sanford C. Bernstein started coverage on shares of PDF Solutions in a report on Tuesday, August 11th. They set an “outperform” rating and a $65.00 price target on the stock. Morgan Stanley started coverage on shares of PDF Solutions in a report on Tuesday, September 8th. They issued an “overweight” rating and a $62.00 price objective for the company. DA Davidson decreased their price objective on shares of PDF Solutions from $68.00 to $60.00 and set a “buy” rating for the company in a research report on Friday. Weiss Ratings raised shares of PDF Solutions from a “sell (d+)” rating to a “hold (c)” rating in a research note on Friday, August 21st. Finally, Rosenblatt Securities reissued a “buy” rating and set a $63.00 target price on shares of PDF Solutions in a research note on Friday, August 7th. 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 MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $58.17.

Trending Headlines about PDF Solutions

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

• Positive Sentiment: PDF Solutions reported Q3 2026 earnings of $0.40 per share, above analyst estimates of roughly $0.33–$0.34 and up from $0.25 a year earlier. Revenue was $68.33 million, topping the $67.48 million consensus; the earnings-call coverage also highlighted record revenue and expanding margins. These results likely supported the stock’s advance. PDF Solutions Q3 results
• Negative Sentiment: Wells Fargo cut its price target to $39 from $50 and maintained an “equal weight” rating. The new target implies only modest upside from the share price cited in the report, potentially tempering enthusiasm despite the earnings beat. Wells Fargo recommendations

Insiders Place Their Bets

In other PDF Solutions news, 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 transaction of $150,727.54. Following the transaction, the chief technology officer directly owned 90,965 shares of the company’s stock, valued at $4,039,755.65. This trade represents a 3.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Shuo Zhang sold 1,501 shares of PDF Solutions stock in a transaction dated Wednesday, August 12th. The shares were 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 in the company, valued at approximately $1,203,368.60. This trade represents a 6.03% decrease in their position. 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.