D.A. Davidson raised its price target on PDF Solutions (NASDAQ:PDFS) to $40 from $38 whilst maintaining a Buy rating, following management discussions about the company's business model evolution and expanding role in networking and analytics across the semiconductor ecosystem. The upgrade came after PDF Solutions reported fourth-quarter 2025 results on 12 February 2026, showing revenue of $62.4 million, up 25% year-over-year. Diluted earnings per share reached $0.30, beating consensus expectations. Non-GAAP gross margin improved to 77% from 72% the previous year. PDF Solutions provides data, analytics and software that help semiconductor companies improve manufacturing yield, quality and operational efficiency. The company expects 2026 revenue growth aligned with its long-term 20% target.

PDF Solutions, a semiconductor data solutions provider, reported record fourth-quarter revenues of $62.4 million, up 25% year-on-year, and full-year 2025 revenues of $219.0 million, up 22% from 2024. The company's post-year-end backlog stood at $254 million. For Q4 2025, GAAP gross margin reached 73%, with non-GAAP gross margin at 77%. The company posted a GAAP diluted loss per share of $0.00 and non-GAAP diluted earnings per share of $0.30. Full-year GAAP gross margin was 72%, with non-GAAP gross margin at 76%. GAAP operating margin improved to 3%, whilst non-GAAP operating margin reached 21%. The company completed its acquisition of SecureWise LLC during the period. CEO John Kibarian stated the firm expects 2026 revenues to grow consistent with its 20% long-term revenue growth target.