FormFactor (NASDAQ:FORM) Shares Gap Up Following Strong Earnings

FormFactor, Inc. (NASDAQ:FORM)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $83.45, but opened at $101.96. FormFactor shares last traded at $102.8490, with a volume of 337,566 shares changing hands.

The semiconductor company reported $0.82 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.21. FormFactor had a return on equity of 9.31% and a net margin of 8.14%.The firm had revenue of $258.24 million during the quarter, compared to analyst estimates of $240.00 million. During the same quarter in the prior year, the company posted $0.27 earnings per share. The business’s quarterly revenue was up 31.9% compared to the same quarter last year. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS.

Key Headlines Impacting FormFactor

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: FormFactor reported record second-quarter revenue of $258.2 million, up 31.9% year over year, and adjusted earnings of $0.82 per share—well above the $0.61 consensus estimate. Demand was strong across DRAM, Foundry & Logic, and Systems. FormFactor Reports 2026 Second Quarter Results
• Positive Sentiment: Third-quarter guidance exceeded expectations, with projected revenue of $260 million to $280 million versus the $246.2 million consensus and EPS of $0.77 to $0.95 versus $0.60 expected. FormFactor Stock Surges on Better-Than-Expected Q2 Earnings
• Positive Sentiment: The expanded multi-year partnership with Keystone Microtech is intended to increase probe-card manufacturing and testing capacity for AI, HBM, advanced packaging, and high-speed semiconductor applications, supporting FormFactor’s strategic growth prospects. FormFactor and Keystone Microtech Strategic Partnership
• Neutral Sentiment: Needham analyst Charles Shi maintained a Hold rating, saying strong near-term performance is offset by a back-end-loaded outlook for co-packaged optics (CPO) growth. The rating may limit enthusiasm following the earnings beat. FormFactor Rated Hold
• Negative Sentiment: The stock’s elevated valuation—approximately 96 times earnings—leaves little room for disappointment, while reports of continued insider selling could add pressure and encourage profit-taking after its recent rally.

Analyst Upgrades and Downgrades

FORM has been the subject of a number of recent analyst reports. B. Riley Financial raised shares of FormFactor from a “neutral” rating to a “buy” rating and set a $165.00 target price for the company in a research note on Thursday, June 11th. TD Cowen boosted their price objective on shares of FormFactor from $80.00 to $150.00 and gave the company a “hold” rating in a research report on Thursday, April 30th. Stifel Nicolaus set a $135.00 target price on shares of FormFactor in a research note on Thursday, April 30th. Northland Securities set a $118.00 price target on FormFactor in a report on Thursday, April 30th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of FormFactor in a research note on Monday. Six analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, FormFactor has a consensus rating of “Moderate Buy” and an average price target of $132.45.

Insider Activity

In related news, Director Rebeca Obregon-Jimenez sold 3,828 shares of the firm’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $126.47, for a total transaction of $484,127.16. Following the sale, the director owned 7,875 shares of the company’s stock, valued at $995,951.25. This trade represents a 32.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Mike Slessor sold 11,890 shares of the company’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $121.35, for a total value of $1,442,851.50. Following the transaction, the chief executive officer directly owned 435,147 shares in the company, valued at approximately $52,805,088.45. The trade was a 2.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 38,534 shares of company stock worth $4,864,118 over the last ninety days. 0.79% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On FormFactor

Several hedge funds have recently added to or reduced their stakes in FORM. Los Angeles Capital Management LLC purchased a new position in shares of FormFactor in the 4th quarter valued at about $25,000. UMB Bank n.a. boosted its position in FormFactor by 128.9% during the fourth quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company’s stock worth $28,000 after purchasing an additional 281 shares in the last quarter. Torren Management LLC acquired a new stake in FormFactor in the fourth quarter valued at approximately $41,000. Kestra Advisory Services LLC acquired a new stake in FormFactor in the fourth quarter valued at approximately $53,000. Finally, Clearstead Advisors LLC increased its position in shares of FormFactor by 58.9% in the fourth quarter. Clearstead Advisors LLC now owns 1,050 shares of the semiconductor company’s stock valued at $59,000 after buying an additional 389 shares in the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

FormFactor Price Performance

The company has a quick ratio of 3.69, a current ratio of 4.55 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $8.13 billion, a PE ratio of 119.90 and a beta of 1.22. The stock has a 50-day moving average price of $124.97 and a 200 day moving average price of $111.19.

About FormFactor

FormFactor, Inc (NASDAQ:FORM) is a leading provider of advanced test and measurement solutions for the semiconductor industry. The company specializes in the design, development and manufacture of high-performance wafer-level and package-level test interfaces used in wafer sort, characterization, reliability and failure analysis applications. By leveraging precision microelectromechanical systems (MEMS) and photolithographic processes, FormFactor delivers probe cards, analytical probes and test sockets that enable device makers to validate next-generation integrated circuits across logic, memory, RF, analog and power applications.

FormFactor’s product portfolio includes custom probe cards for wafer probers, TEM-based analytical probes for material and device characterization, and socket solutions for burn-in and final test of packaged devices.