PDF Solutions Reaffirms 2026 Growth Target After Record Quarter

The Tip Desk · November 7, 2026 · 2 min read

Third-quarter revenue reached a record $68.3 million, up 20% from a year earlier, as GAAP operating margin widened to 12%.

PDF Solutions, Inc. (PDFS), a provider of data solutions for the semiconductor and electronics ecosystem, reported record third-quarter revenue of $68.3 million, up 20% from $57.1 million in the year-ago quarter, and said it reaffirms its 20% annual revenue growth target for 2026.

Sequential growth accelerated. Revenue rose 11% from $61.5 million in the second quarter, after an approximately 2% sequential increase in that prior period.

Platform revenue, the larger of the company’s two reportable lines, was $58.3 million, up 22% from $48.0 million a year earlier and 19% from the second quarter. Volume-based revenue was $10.0 million, down 19% from $12.4 million in the prior quarter. Recurring revenue accounted for 88% of the mix, versus 80% in the second quarter.

GAAP gross margin expanded to 73% from 69% in the second quarter. Non-GAAP gross margin was 77%. GAAP operating margin widened to 12% from 8%. Non-GAAP operating margin was 28%.

GAAP net income was $6.8 million, or $0.16 a share, compared with $4.3 million, or $0.10 a share, in the second quarter. Non-GAAP net income was $17.2 million, or $0.40 a share.

The geographic mix shifted sharply. Japan revenue was $21.7 million, or 32% of the total, versus $6.6 million, or 11%, in the second quarter. United States revenue was $22.7 million, or 33% of the mix. China revenue was $11.1 million, or 16%. Rest of the world contributed $12.9 million, or 19%.

Ending backlog declined to $247.2 million from $270.7 million at the end of the second quarter.

Operating cash flow was $13.8 million. Cash used for capital expenditures was $15.1 million. Cash and cash equivalents were $107.1 million at September 30, 2026. Outstanding debt principal was $66.25 million.

Chief Executive John Kibarian said the company continued its growth trajectory and that, on September 9, 2026, it announced Exensio Aurora, a new Exensio analytics architecture described as scalable to petabyte-scale semiconductor manufacturing data and intended to deploy agentic AI across manufacturing operations and the supply chain. Based on actual results through the third quarter and the fourth-quarter pipeline, the company said it reaffirms its 20% annual revenue growth target for 2026.