PDF Solutions

PDF Solutions reported Q2 FY2026. EPS came in at $0.27 against a $0.27 consensus, beat by 0.7%. Revenue was $61.5M versus $61.2M expected, beat by 0.6%. Gross margin was 68.9%, down 290 bps from last quarter.

PDF Solutions reported a solid Q1 FY2026, with both revenue and EPS exceeding street estimates. The company's revenue of $60.1 million and EPS of $0.31 represent a 0.7% and 34.8% beat, respectively. This print underscores the company's consistent execution and reaffirms its long-term growth and margin targets.

PDF Solutions gave the market only a +0.7% revenue surprise, but the +25.0% EPS surprise and 74.4% gross margin argue the mix shift is being underpriced. The variant view is that investors are still treating the print as a small-cap process-control growth story, while the data show a recurring, volume-linked software model beginning to carry margins toward management’s 77% gross-margin target.

PDF Solutions printed a -7.8% revenue surprise against the Street while matching EPS at $0.25, yet the variant view is that investors should underwrite conversion risk, not demand erosion. The market was set up for $61.95 million of revenue; what it got was $57.1 million plus over $100 million of bookings, $292 million of backlog, and a management team explicitly pointing to subscription tool qualifications as the gating item for the next leg.