PDF Solutions, Inc. (PDFS) AI Stock Analysis

PDF Solutions, Inc. provides proprietary software, physical intellectual property products, and professional services tailored for integrated circuit (IC) design and manufacturing. Operating globally across the United States, China, Japan, Taiwan, and other regions, the company helps optimize semiconductor production processes. Its core Exensio software includes Manufacturing Analytics for resolving production yield, performance, and reliability issues, alongside Process Control modules for failure detection and classification. PDF Solutions also supplies specialized hardware, including the eProbe non-contactless E-beam tool and the Characterization Vehicle system comprising CV test chips and pdFasTest electrical testers. In addition, its Cimetrix software products enable equipment manufacturers to implement industry-standard interfaces.

Between FY2021 and FY2025, revenue increased from $111.1M to $219.0M, reflecting a 5-year revenue CAGR of 20.0%. Over the same timeframe, gross margin widened from 60.2% to 72.3%, and operating margin improved from -15.0% to 2.7%. Although net income was -$640,000 in FY2025 with an EPS of $1.21, trailing twelve months revenue expanded to $241.2M with a net profit margin of 4.3% and EPS of $0.25. In the latest quarter ended June 30, 2026, quarterly revenue grew 18.9% year-over-year, and quarterly earnings expanded by 241.6%.

As of June 30, 2026, PDF Solutions maintained $114.9M in cash and short-term investments against $71.6M in total debt, yielding net cash of $43.3M. Total assets stood at $519.2M compared to shareholders' equity of $372.5M, supporting a current ratio of 3.45 and a debt-to-equity ratio of 0.19. In FY2025, operating cash flow was $24.1M, capital expenditures were $32.6M, and free cash flow was -$8.6M. The company spent $244,000 on share buybacks in FY2025.

PDF Solutions trades at a trailing P/E of 156.9x and a forward P/E of 27.6x, compared to medians of 28.1x and 18.8x for its US-listed Technology peers. Its enterprise value to EBITDA ratio is 56.0x, above the peer median of 16.6x, and its price-to-sales ratio is 6.9x versus the peer median of 2.8x. Over the past year, the stock gained 40.9%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, its return of 70.9% trails the S&P 500 return of 83.0%.

Wall Street coverage includes 5 Strong Buy, 2 Buy, and 1 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target is $61.50, representing a 56.8% premium over the last close of $39.22. Analysts expect current fiscal year revenue of $263.8M with EPS of $1.29, followed by FY2027 estimates of $318.3M in revenue and $1.65 in EPS. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of PDF Solutions, Inc. (PDFS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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