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

FormFactor (NASDAQ:FORM) released its quarterly earnings results on Wednesday. The semiconductor company reported $0.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.21, FiscalAI reports. FormFactor had a net margin of 8.14% and a return on equity of 9.31%. The company had revenue of $258.24 million for the quarter, compared to the consensus estimate of $240.00 million. During the same quarter in the prior year, the firm earned $0.27 earnings per share. FormFactor’s revenue 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 25.9%

FormFactor stock traded up $21.57 during midday trading on Thursday, reaching $105.02. The company’s stock had a trading volume of 466,681 shares, compared to its average volume of 1,709,170. The stock’s 50-day simple moving average is $124.97 and its 200-day simple moving average is $111.19. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.55 and a quick ratio of 3.69. FormFactor has a 52-week low of $26.08 and a 52-week high of $160.27. The stock has a market capitalization of $8.19 billion, a P/E ratio of 120.25 and a beta of 1.22.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on FORM. Stifel Nicolaus set a $135.00 price objective on FormFactor in a research report on Thursday, April 30th. Cantor Fitzgerald restated an “overweight” rating on shares of FormFactor in a research report on Monday. Weiss Ratings lowered shares of FormFactor from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, July 15th. Northland Securities set a $118.00 price objective on shares of FormFactor in a research report on Thursday, April 30th. Finally, B. Riley Financial raised shares of FormFactor from a “neutral” rating to a “buy” rating and set a $165.00 target price on the stock in a research note on Thursday, June 11th. Six research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $132.45.

FormFactor News Summary

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.

Insider Buying and Selling at FormFactor

In other FormFactor news, Director Brian C. White sold 3,250 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $126.00, for a total transaction of $409,500.00. Following the sale, the director owned 8,653 shares of the company’s stock, valued at approximately $1,090,278. The trade was a 27.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Dennis Thomas St sold 2,800 shares of FormFactor 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 sale, the director owned 29,073 shares of the company’s stock, valued at $4,404,268.77. The trade was a 8.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 38,534 shares of company stock valued at $4,864,118. Insiders own 0.79% of the company’s stock.

Institutional Trading of FormFactor

Large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its stake in shares of FormFactor by 4.0% in the second quarter. Bank of America Corp DE now owns 2,806,905 shares of the semiconductor company’s stock worth $96,586,000 after purchasing an additional 108,487 shares during the last quarter. Alliancebernstein L.P. increased its holdings in FormFactor by 3.2% in the 3rd quarter. Alliancebernstein L.P. now owns 2,397,161 shares of the semiconductor company’s stock worth $87,305,000 after buying an additional 73,644 shares during the period. Morgan Stanley raised 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 buying an additional 1,127,146 shares during the last quarter. Sei Investments Co. lifted 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 acquiring an additional 55,101 shares during the period. Finally, Victory Capital Management Inc. lifted 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 acquiring an additional 1,234,488 shares during the period. Hedge funds and other institutional investors own 98.76% of the company’s stock.

FormFactor Company Profile

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.