FormFactor (NASDAQ:FORM) Releases Quarterly Earnings Results, Beats Expectations By $0.21 EPS

FormFactor (NASDAQ:FORM) issued its quarterly earnings results on Wednesday. The semiconductor company reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.21, FiscalAI reports. FormFactor had a return on equity of 13.69% and a net margin of 12.80%.The firm had revenue of $258.24 million for the quarter, compared to the consensus estimate of $240.00 million. During the same period in the prior year, the business posted $0.27 earnings per share. The company’s revenue for the quarter was up 31.9% on a year-over-year basis. FormFactor updated its Q3 2026 guidance to 0.770-0.950 EPS.

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

• Record Q2 performance: Revenue reached $258.2 million, while non-GAAP gross margin rose to 53.3% and non-GAAP EPS increased to $0.82. Management said the company surpassed a $1 billion annual revenue run rate and expects another record quarter in Q3.
• Broad AI and advanced-packaging demand: Growth was driven by HBM4, data-center CPUs, networking, custom ASICs and co-packaged optics. FormFactor cited design wins, expanding customer relationships and market-share gains in high-speed HBM testing.
• CPO momentum accelerated: The company now expects 2026 co-packaged optics revenue to exceed $20 million, earlier than previously anticipated, supported by its position in the first test insertion for photonic integrated circuits.
• Farmers Branch expansion remains on track: The new Texas facility is expected to begin ramping in Q4 2026 and contribute meaningful capacity through 2027, with gross-margin accretion expected primarily by 2028. Capital expenditures are projected at $140 million to $170 million in 2026, alongside $25 million to $30 million of pre-production ramp costs.
• Q3 margin outlook includes a nonrecurring benefit: Although revenue is expected to rise to $270 million at the midpoint and EPS to $0.86, roughly 300 basis points of anticipated gross-margin improvement is tied to $79 million of tariff refunds that will not recur. DRAM revenue is expected to remain flat sequentially as mix shifts from higher-margin HBM toward DDR.

FormFactor Stock Up 1.2%

Shares of FormFactor stock opened at $106.66 on Friday. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.55 and a quick ratio of 3.69. The stock has a market cap of $8.31 billion, a price-to-earnings ratio of 73.37 and a beta of 1.22. The firm’s 50-day moving average is $124.52 and its two-hundred day moving average is $111.45. FormFactor has a 1 year low of $26.08 and a 1 year high of $160.27.

Analyst Ratings Changes

A number of analysts have weighed in on FORM shares. Northland Securities set a $118.00 target price on FormFactor in a research note on Thursday, April 30th. Evercore set a $150.00 price target on shares of FormFactor in a report on Thursday. Stifel Nicolaus set a $135.00 price target on shares of FormFactor in a research note on Thursday, April 30th. Weiss Ratings lowered shares of FormFactor from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, July 15th. Finally, Craig Hallum raised shares of FormFactor from a “hold” rating to a “buy” rating and set a $175.00 price objective for the company in a research report on Tuesday, May 12th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $127.45.

Insider Buying and Selling

In other FormFactor news, Director Dennis Thomas St sold 2,800 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $151.49, for a total transaction of $424,172.00. Following the completion of the sale, the director owned 29,073 shares in the company, valued at $4,404,268.77. This represents a 8.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Mike Slessor sold 11,890 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $121.35, for a total value of $1,442,851.50. Following the sale, the chief executive officer directly owned 435,147 shares in the company, valued at $52,805,088.45. This trade represents a 2.66% 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 a total of 38,534 shares of company stock valued at $4,864,118 over the last ninety days. Company insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Bank of America Corp DE grew its holdings in shares of FormFactor by 4.0% during the second quarter. Bank of America Corp DE now owns 2,806,905 shares of the semiconductor company’s stock valued at $96,586,000 after buying an additional 108,487 shares during the last quarter. Alliancebernstein L.P. lifted its position in FormFactor by 3.2% during the 3rd quarter. Alliancebernstein L.P. now owns 2,397,161 shares of the semiconductor company’s stock worth $87,305,000 after acquiring an additional 73,644 shares during the period. Morgan Stanley lifted its position in FormFactor by 98.5% during the 4th quarter. Morgan Stanley now owns 2,271,562 shares of the semiconductor company’s stock worth $126,708,000 after acquiring an additional 1,127,146 shares during the period. Sei Investments Co. grew its stake in FormFactor by 3.5% during the 3rd quarter. Sei Investments Co. now owns 1,640,144 shares of the semiconductor company’s stock valued at $59,734,000 after purchasing an additional 55,101 shares during the last quarter. Finally, Victory Capital Management Inc. grew its stake in FormFactor by 5,596.8% during the 4th quarter. Victory Capital Management Inc. now owns 1,256,545 shares of the semiconductor company’s stock valued at $70,090,000 after purchasing an additional 1,234,488 shares during the last quarter. Institutional investors and hedge funds own 98.76% of the company’s stock.

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.