FormFactor (NASDAQ:FORM) Issues Earnings Results

FormFactor (NASDAQ:FORM) released its quarterly earnings data on Wednesday. The semiconductor company reported $1.04 EPS for the quarter, beating the consensus estimate of $0.86 by $0.18, FiscalAI reports. The firm had revenue of $280.55 million for the quarter, compared to the consensus estimate of $270.52 million. FormFactor had a net margin of 12.80% and a return on equity of 13.44%.

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 Price Performance

NASDAQ FORM traded up $3.46 on Wednesday, hitting $110.31. 1,616,446 shares of the company’s stock were exchanged, compared to its average volume of 1,643,085. The company has a current ratio of 4.08, a quick ratio of 3.34 and a debt-to-equity ratio of 0.01. FormFactor has a 52 week low of $44.16 and a 52 week high of $160.27. The stock has a market cap of $8.60 billion, a price-to-earnings ratio of 75.55 and a beta of 1.18. The stock has a 50-day moving average of $117.44 and a 200-day moving average of $112.99.

Insider Buying and Selling

In other news, Director Kelley Steven-Waiss sold 2,100 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The stock was 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 of the company’s stock, valued at $2,347,338.60. This represents a 7.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Mike Slessor sold 11,098 shares of the business’s stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $125.20, for a total transaction of $1,389,469.60. Following the completion of the sale, the chief executive officer directly owned 455,596 shares in the company, valued at approximately $57,040,619.20. This represents a 2.38% 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. Over the last 90 days, insiders sold 46,710 shares of company stock worth $5,520,564. 0.79% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Deutsche Bank Aktiengesellschaft initiated coverage on shares of FormFactor in a research note on Wednesday, September 30th. They issued a “buy” rating and a $200.00 price target on the stock. Weiss Ratings upgraded shares of FormFactor from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Wall Street Zen cut FormFactor from a “strong-buy” rating to a “buy” rating in a report on Sunday, August 9th. Stifel Nicolaus set a $115.00 target price on FormFactor in a research report on Tuesday, October 13th. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of FormFactor in a research note on Tuesday, September 22nd. Seven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $131.83.

About FormFactor

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.