PDF Solutions Delivers 26% Revenue Growth to $60.1M with 10% GAAP Margin
PDFS•PDF Solutions reported Q1 2026 revenues of $60.1 million, up 26% year-over-year, with GAAP operating margin rising to 10% and non-GAAP EPS of $0.31. The company ended the quarter with a $246.4 million backlog and reaffirmed its 20% annual revenue growth target.
1. Financial Performance Highlights
PDF Solutions posted total revenues of $60.1 million for Q1 2026, marking a 26% increase from $47.8 million in Q1 2025. GAAP net income reached $4.8 million, or $0.12 per diluted share, reversing a $3.0 million loss, while non-GAAP net income rose to $12.6 million, or $0.31 per share.
2. Margin and Profitability Improvement
GAAP gross margin held at 72% (versus 73% a year ago) and non-GAAP gross margin was 76% (versus 77%), reflecting controlled costs. GAAP operating margin improved to 10% from –7% in Q1 2025, while non-GAAP operating margin climbed to 25% from 18%.
3. Backlog and Customer Developments
The quarter closed with an ending backlog of $246.4 million, underscoring robust demand. Key wins include a fabless customer renewing its Exensio commitment, a semiconductor IDM advancing development of its next-generation test solution, and shipment of an eProbe tool to a leading-edge chipmaker.
4. Outlook and Guidance
Management reaffirmed a 20% annual revenue growth target for 2026 and remains on track toward long-term margin goals of 77% gross and 27% operating. Continued market adoption and product portfolio momentum support the company’s strategic outlook.
