FormFactor (NASDAQ:FORM) Posts Earnings Results, Beats Estimates By $0.18 EPS

FormFactor (NASDAQ:FORM) posted its earnings results on Wednesday. The semiconductor company reported $1.04 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.18, FiscalAI reports. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The business had revenue of $280.55 million for the quarter, compared to analyst estimates of $270.52 million. During the same quarter in the previous year, the business posted $0.33 EPS. The business’s quarterly revenue was up 38.4% on a year-over-year basis.

Here are the key takeaways from FormFactor’s conference call:

• Positive Sentiment: FormFactor reported a strong third quarter, with revenue up 9% sequentially and nearly 40% year over year to $280.5 million; non-GAAP gross margin reached 56.5% and EPS was $1.04, exceeding the high end of guidance. Fourth-quarter revenue is expected at approximately $285 million, putting the company on track to surpass $1 billion in 2026 revenue.
• Positive Sentiment: Demand is broadening across high-performance computing, including GPUs, custom ASICs, CPUs, HBM, and advanced packaging. The company shipped probe cards in multimillion-dollar volumes for a leading GPU design and expects significant share gains in GPUs and custom ASICs in 2027.
• Positive Sentiment: The new Farmers Branch facility is ramping slightly ahead of schedule, with its first production unit already shipped and an expected exit-2027 annual probe-card capacity of approximately $400 million. FormFactor also secured a $300 million investment from Teradyne as part of an expanded partnership covering next-generation semiconductor test solutions.
• Positive Sentiment: Underlying non-GAAP gross-margin performance improved to a roughly 53% baseline, driven by better yields, cycle times, labor performance, and manufacturing efficiency. Management expects Farmers Branch ramp inefficiencies to be largely offset by higher volumes and operational improvements, although the quarter’s 300-basis-point tariff-refund benefit and other favorable items are not recurring.
• Neutral Sentiment: Systems revenue reached a record $59.5 million, driven by TRITON photonic systems, and 2026 TRITON revenue expectations increased to more than $30 million from an initial $10 million-$20 million forecast. Management sees strong early adoption of co-packaged optics, near-package optics, and pluggable applications, but noted that CPO demand remains concentrated in one ecosystem.

FormFactor Stock Performance

Shares of NASDAQ:FORM traded down $10.16 during trading on Thursday, hitting $100.15. 1,314,051 shares of the company traded hands, compared to its average volume of 1,640,998. The company has a quick ratio of 3.34, a current ratio of 4.08 and a debt-to-equity ratio of 0.01. The business’s fifty day moving average is $117.16 and its 200-day moving average is $113.21. The stock has a market capitalization of $7.81 billion, a price-to-earnings ratio of 68.70 and a beta of 1.18. FormFactor has a one year low of $47.33 and a one year high of $160.27.

Insider Activity

In other FormFactor news, Director Kelley Steven-Waiss sold 2,100 shares of the company’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $96.10, for a total value of $201,810.00. Following the completion of the transaction, the director owned 24,426 shares in the company, valued at approximately $2,347,338.60. This represents a 7.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Mike Slessor sold 17,510 shares of the business’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $104.73, for a total value of $1,833,822.30. Following the transaction, the chief executive officer owned 466,694 shares of the company’s stock, valued at $48,876,862.62. This trade represents a 3.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 46,710 shares of company stock valued at $5,520,564 in the last 90 days. Insiders own 0.79% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on FORM shares. Weiss Ratings raised FormFactor from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. TD Cowen cut their target price on FormFactor from $150.00 to $100.00 and set a “hold” rating on the stock in a research report on Thursday, July 30th. Zacks Research cut shares of FormFactor from a “strong-buy” rating to a “hold” rating in a report on Monday, October 19th. Cantor Fitzgerald reissued an “overweight” rating on shares of FormFactor in a research report on Tuesday, September 22nd. Finally, Stifel Nicolaus set a $115.00 price objective on FormFactor in a report on Tuesday, October 13th. Seven investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $131.83.

Key Stories Impacting FormFactor

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: FormFactor reported record third-quarter revenue of $280.5 million, up 38.4% year over year and 8.6% sequentially. Adjusted EPS was $1.04, exceeding the $0.86 consensus estimate, while revenue also topped expectations. FormFactor Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: GAAP results also improved sharply: diluted EPS rose to $0.93 from $0.20 a year earlier, gross margin expanded to 54.7% from 39.8%, and operating cash flow increased to $104.3 million from $27.0 million. Growth was supported by Foundry & Logic, Systems, and co-packaged optics demand. FormFactor Reports 2026 Third Quarter Results
• Positive Sentiment: Management said broad-based demand remains strong and outlined a potential $400 million annual probe-card capacity exit rate by 2027 as its Farmers Branch facility ramps, supporting the longer-term semiconductor and AI-related growth outlook. FormFactor Outlines Probe Card Capacity Expansion
• Neutral Sentiment: FormFactor forecast fourth-quarter revenue of approximately $285 million, plus or minus $10 million. While this implies continued growth, investors may have expected a larger outlook increase after the third-quarter beat.
• Negative Sentiment: Fourth-quarter GAAP diluted EPS guidance of $0.84, plus or minus $0.09, is below the third quarter’s $0.93, potentially raising concerns about sequential earnings pressure despite solid revenue expectations.
• Negative Sentiment: The stock’s elevated valuation—about 69 times earnings—left little room for disappointment, and the shares fell after hours despite the strong results. Reports also noted substantial insider selling, including sales by CEO Mike Slessor, which may have added to investor caution.

FormFactor Company Profile

FormFactor, Inc is a semiconductor test and measurement company that designs and manufactures equipment and components used to evaluate integrated circuits during the wafer fabrication and production process. Its products help semiconductor manufacturers and suppliers measure electrical performance, identify defects and improve the development and manufacturing of advanced chips.

The company’s portfolio includes probe cards used for wafer-level testing, as well as probe stations, analytical systems and related accessories for semiconductor engineering and production applications.