FORM

It has been about a month since the last earnings report for FormFactor (FORM). Shares have added about 4.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for FormFactor, Inc. before we dive into how investors and analysts have reacted as of late. FormFactor delivered second-quarter 2026 non-GAAP earnings of 82 cents per share, up 203.7% year over year, and beat the Zacks Consensus Estimate by 34.43%.Revenues increased 32% year over year to $258.2 million and surpassed the consensus mark of $240 million by 7.55%. Broad demand across high-bandwidth memory, foundry and logic, and co-packaged optics helped FORM post record revenues. Probe Card revenues reached $209.7 million, increasing 29.4% year over year. The segment benefited from rising test intensity across advanced memory and high-performance computing applications.Foundry and Logic revenues increased 22.4% year over year to $121.8 million. Growth was led by probe cards for data-center CPU applications, alongside continued networking strength, early momentum in hyperscaler custom ASICs and steady PC and mobile demand.Management expects further sequential growth in the third quarter, supported by broad demand across its served applications. FORM is also shipping production units for a newly qualified GPU program, which is expected to begin contributing revenues in the second half of 2026. DRAM revenues jumped 48.9% year over year to $85 million. High-bandwidth memory accounted for approximately two-thirds of DRAM sales, driven by two customers adopting the company’s SmartMatrix full-wafer contactor technology for high-speed HBM4 testing.SmartMatrix allows customers to test hundreds of completed HBM stacks simultaneously at data rates exceeding 10 gigabits per second. This capability helps verify that HBM stacks are functional before they are combined with expensive GPUs or custom ASICs in advanced packaging.Third-quarter DRAM revenues are expected to remain comparable with the second-quarter record. However, management anticipates a significant mix shift from HBM toward DDR as memory manufacturers adjust wafer production to capitalize on higher DDR pricing. Systems revenues increased 43.9% year over year to a record $48.5 million. Sales also rose sharply from $27.9 million in the prior quarter, reflecting a recovery in the engineering prober business and accelerating demand for co-packaged optics.FORM now expects 2026 co-packaged optics revenues to exceed $20 million, surpassing its previous projection of reaching the high end of a $10-$20 million range. The company expects cumulative CPO revenues to cross $20 million by the end of the third quarter, followed by additional contributions in the fourth quarter. Non-GAAP gross margin expanded to 53.3% compared with 38.5% reported in the year-ago quarter. Non-GAAP operating expenses were $65.7 million, up 25.1% year over year.Non-GAAP operating income rose to $72 million from $22.8 million a year earlier. As of June 27, 2026, cash and cash equivalents and marketable securities were $345.6 million compared with $303.2 million as of March 28, 2026. Cash provided by operating activities was $61.8 million, up from $18.9 million in the year-ago period. Free cash flow totaled $52.6 million compared with a free cash outflow of $47.1 million reported in the year-ago quarter.FORM continues to expect 2026 cash capital expenditures of $140-$170 million, primarily supporting its Farmers Branch manufacturing expansion. The new facility remains on track to begin ramping in the fourth quarter and continue through 2027. Its initial capacity is expected to be roughly equivalent to the company’s current California probe-card manufacturing footprint. For the third quarter of 2026, FormFactor expects revenues of $270 million (plus or minus $10 million). At the midpoint, this implies continued sequential growth and another quarterly revenue record.Non-GAAP gross margin is projected at 54% (plus or minus 150 bps). The margin outlook includes an anticipated $7-$9 million benefit from tariff refunds, partly offset by a less favorable DRAM product mix. Non-GAAP earnings are expected at 86 cents per share (plus or minus 9 cents). In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 52.16% due to these changes. Currently, FormFactor has a great Growth Score of A, a score with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise FormFactor has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR), has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Amkor Technology reported revenues of $1.9 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $0.70 for the same period compares with $0.22 a year ago. For the current quarter, Amkor Technology is expected to post earnings of $0.79 per share, indicating a change of +54.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Amkor Technology. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

FormFactor (FORM) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this integrated circuits diagnostic company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for FormFactor, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.87 per share, which is a change of +163.6% from the year-ago reported number. Over the last 30 days, four estimates have moved higher for FormFactor compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 40.39%. For the full year, the earnings estimate of $3.05 per share represents a change of +134.6% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for FormFactor. Over the past month, five estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 27.39%. Thanks to promising estimate revisions, FormFactor currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. While strong estimate revisions for FormFactor have attracted decent investments and pushed the stock 13.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

FormFactor FORM delivered second-quarter 2026 non-GAAP earnings of 82 cents per share, up 203.7% year over year, and beat the Zacks Consensus Estimate by 34.43%.Revenues increased 32% year over year to $258.2 million and surpassed the consensus mark of $240 million by 7.55%. Broad demand across high-bandwidth memory, foundry and logic, and co-packaged optics helped FORM post record revenues. FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote Probe Card revenues reached $209.7 million, increasing 29.4% year over year. The segment benefited from rising test intensity across advanced memory and high-performance computing applications.Foundry and Logic revenues increased 22.4% year over year to $121.8 million. Growth was led by probe cards for data-center CPU applications, alongside continued networking strength, early momentum in hyperscaler custom ASICs and steady PC and mobile demand.Management expects further sequential growth in the third quarter, supported by broad demand across its served applications. FORM is also shipping production units for a newly qualified GPU program, which is expected to begin contributing revenues in the second half of 2026. DRAM revenues jumped 48.9% year over year to $85 million. High-bandwidth memory accounted for approximately two-thirds of DRAM sales, driven by two customers adopting the company’s SmartMatrix full-wafer contactor technology for high-speed HBM4 testing.SmartMatrix allows customers to test hundreds of completed HBM stacks simultaneously at data rates exceeding 10 gigabits per second. This capability helps verify that HBM stacks are functional before they are combined with expensive GPUs or custom ASICs in advanced packaging.Third-quarter DRAM revenues are expected to remain comparable with the second-quarter record. However, management anticipates a significant mix shift from HBM toward DDR as memory manufacturers adjust wafer production to capitalize on higher DDR pricing. Systems revenues increased 43.9% year over year to a record $48.5 million. Sales also rose sharply from $27.9 million in the prior quarter, reflecting a recovery in the engineering prober business and accelerating demand for co-packaged optics.FORM now expects 2026 co-packaged optics revenues to exceed $20 million, surpassing its previous projection of reaching the high end of a $10-$20 million range. The company expects cumulative CPO revenues to cross $20 million by the end of the third quarter, followed by additional contributions in the fourth quarter. Non-GAAP gross margin expanded to 53.3% compared with 38.5% reported in the year-ago quarter. Non-GAAP operating expenses were $65.7 million, up 25.1% year over year.Non-GAAP operating income rose to $72 million from $22.8 million a year earlier. As of June 27, 2026, cash and cash equivalents and marketable securities were $345.6 million compared with $303.2 million as of March 28, 2026.Cash provided by operating activities was $61.8 million, up from $18.9 million in the year-ago period. Free cash flow totaled $52.6 million compared with a free cash outflow of $47.1 million reported in the year-ago quarter.FORM continues to expect 2026 cash capital expenditures of $140-$170 million, primarily supporting its Farmers Branch manufacturing expansion. The new facility remains on track to begin ramping in the fourth quarter and continue through 2027. Its initial capacity is expected to be roughly equivalent to the company’s current California probe-card manufacturing footprint. For the third quarter of 2026, FormFactor expects revenues of $270 million (plus or minus $10 million). At the midpoint, this implies continued sequential growth and another quarterly revenue record.Non-GAAP gross margin is projected at 54% (plus or minus 150 bps). The margin outlook includes an anticipated $7-$9 million benefit from tariff refunds, partly offset by a less favorable DRAM product mix.Non-GAAP earnings are expected at 86 cents per share (plus or minus 9 cents). FormFactor currently carries a Zacks Rank #3 (Hold).Shopify SHOP, Sandisk SNDK and HubSpot HUBS are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shopify, Sandisk and HubSpot are expected to report their quarterly results on Aug. 5. Shares of Sandisk have jumped 327.9%, while Shopify and HubSpot have dropped 19.8% and 37.5%, year to date, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Sandisk Corporation (SNDK) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Q2 2026 revenue of $258.2 million, a record, up 14% sequentially from Q1 and above the outlook range of $235 million to $245 million. Non-GAAP Gross Margin: 53.3%, up 430 basis points sequentially and 230 basis points above the high end of the Q2 outlook range. Non-GAAP Earnings Per Share (EPS): $0.82 per fully diluted share, up nearly 50% sequentially from $0.56 in Q1. GAAP Net Income: $56.2 million, or $0.71 per fully diluted share, up from $20.4 million in Q1. Non-GAAP Net Income: $65 million, or $0.82 per fully diluted share, up from $44.5 million in Q1. Free Cash Flow: $52.6 million in Q2, up from $30.7 million in Q1. Cash and Investments: $349 million at quarter end, up $42.8 million sequentially. Systems Segment Revenue: Record $48.5 million, up 74% sequentially from Q1. Probe Card Segment Gross Margin: 54.4%, driven by higher factory utilization and improved yields. Systems Segment Gross Margin: 48.5%, driven by higher volumes and favorable mix. Non-GAAP Operating Expenses: $65.7 million, or 25.4% of revenue, down 200 basis points as a percentage of revenue from Q1. Q3 2026 Revenue Outlook: Expected to be $270 million, plus or minus $10 million. Q3 2026 Non-GAAP Gross Margin Outlook: Expected to be 54%, plus or minus 150 basis points. Q3 2026 Non-GAAP EPS Outlook: Expected to be $0.86, plus or minus $0.09. Warning! GuruFocus has detected 4 Warning Signs with FORM. Is FORM fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FormFactor Inc (NASDAQ:FORM) achieved all-time record revenue, gross profit, and earnings per share in Q2 2026, surpassing a $1 billion annual revenue run rate and exceeding 50% gross margin. The company expects continued sequential growth in Q3 2026, driven by broad demand across high-performance compute and advanced packaging, including HBM4, DDR, and co-packaged optics (CPO). FormFactor Inc (NASDAQ:FORM) is gaining market share in HBM4 with its differentiated SmartMatrix full-wafer contact technology, serving two major customers for high-speed stack die testing. The CPO business is accelerating, with 2026 revenue expected to significantly exceed the initial $20 million forecast, driven by leadership in test insertion 1 for photonic integrated circuits. Operational efficiencies, including yield and cycle time improvements, have driven gross margin expansion, with a new baseline non-GAAP gross margin of approximately 51% at current volumes. FormFactor Inc (NASDAQ:FORM) faces a dynamic DRAM market with a significant mix shift from HBM to DDR in Q3 2026, as customers prioritize DDR wafer starts due to higher profitability. The company expects non-recurring items, such as tariff refunds and precious metal reclaims, to contribute about 300 basis points to Q3 gross margins, which may not be sustainable. Supply chain constraints remain a challenge, limiting the company's ability to ramp capacity for new and existing customers until the Farmers Branch site comes online in late 2026. The ramp of the Farmers Branch facility will incur inefficiencies in 2027, potentially offsetting gross margin improvements until the site reaches initial target capacity by early 2028. Market share gains at a new fabless CPU customer are progressing slowly, with only low single-digit share currently, due to capacity constraints and the time needed to build a new supply chain relationship. Here are the key highlights from FormFactor Inc (NASDAQ:FORM)'s Q2 2026 earnings call. Q: Can you clarify the new baseline for non-GAAP gross margins? Is the 53.3% reported in Q2 the new baseline, and how will the Farmers Branch facility impact this going forward?A: (Aric Mckinnis, CFO) The 53.3% gross margin included non-recurring items like tariff refunds and precious metal reclamation. The sustainable baseline at current volumes and mix is approximately 51%. We expect the Farmers Branch facility, once it begins its production ramp, to be accretive to these current gross margin levels. Q: Can you provide more color on the strength in the Foundry & Logic segment? Is the CPU demand driven by agentic AI a significant upside source for the target model?A: (Michael Slessor, CEO) The Q2 strength was primarily from an upstep in CPU demand from a historically strong customer. We view the CPU space as a long-term opportunity, with exposure through a growing relationship with a leader in high-performance compute and a qualified position with a large fabless CPU manufacturer. This diversification is a key part of our strategy to benefit from the overall growth trend in CPU demand driven by agentic AI. Q: How should we think about the DRAM business given the mix shift from HBM to DDR in Q3?A: (Michael Slessor, CEO) The DRAM market is dynamic. While Q3 DRAM revenue is expected to be similar to Q2's record, the mix will shift significantly toward DDR. This is because our customers are reacting to strong DDR pricing by shifting their wafer starts to maximize profit. Since probe cards are device-specific, our mix will track these customer shifts. The HBM business remains strong, driven by our differentiated SmartMatrix technology for high-speed HBM4 stack-die test. Q: How many opportunities are there like the GPU and fabless CPU wins? Can you provide a timeline for when these could contribute to the model?A: (Michael Slessor, CEO) The key growth segments are GPUs, co-packaged optics (CPO), and custom ASICs. We are in the early innings of the share gains and diversification we outlined at our Investor Day. The GPU business is a second-half 2026 event, with production units shipping in Q3. The custom ASIC opportunity is a larger discontinuity expected in 2027 as next-generation parts require advanced MEMS probe cards. Q: The CPO revenue outlook has been raised significantly. Is the timeline for broad adoption accelerating?A: (Michael Slessor, CEO) We are seeing rapid adoption in the near term, but it is still very early. We now expect to exceed our initial $20 million full-year 2026 CPO revenue target by the end of Q3. While we are excited about the strong growth, forecasting quarter-by-quarter for 2027 is difficult due to variables in customer adoption, yields, and test times. Our long-term view of a $400 million served market by 2030 remains unchanged. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

FormFactor, Inc. FORM delivered record second-quarter 2026 results as management highlighted accelerating demand tied to high-performance computing, advanced packaging and artificial intelligence applications. Executives emphasized improving profitability, expanding capacity and broader customer exposure as key drivers of the company’s growth path. FORM also raised its near-term outlook, pointing to continued revenue and margin expansion while progressing toward its long-term target model focused on higher revenues and profitability. Mike Slessor, CEO, president and director, said FormFactor achieved record revenues, gross profit and earnings per share in the second quarter. Slessor highlighted two milestones: surpassing a $1 billion annual revenue run rate and exceeding 50% gross margin. The company reported revenues of $258.24 million, up 31.89% year over year, beating the Zacks Consensus Estimate of $240.1 million. Non-GAAP earnings per share came in at 82 cents, surpassing the Zacks Consensus Estimate of 61 cents. FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote Slessor said the results reflected a multiyear effort to strengthen FormFactor’s position at the intersection of high-performance compute and advanced packaging while improving execution and operating leverage. FormFactor highlighted strong demand across major growth areas, including high-bandwidth memory (“HBM”) and co-packaged optics (“CPO”). Management said both probe card and Systems segments benefited from this demand during the quarter. HBM represented about two-thirds of DRAM revenues, driven by customer adoption of SmartMatrix full wafer contactor technology for high-speed HBM4 applications. Slessor said the company’s diversification strategy is gaining traction as it serves multiple semiconductor customers and applications rather than relying on a single market segment. FormFactor’s Systems segment recovered strongly, with revenues nearly doubling sequentially in the second quarter. Management attributed the improvement to recovery in engineering prober demand and accelerating growth in CPO. The company now expects 2026 CPO revenues to exceed the previously communicated $10 million to $20 million range and significantly surpass $20 million for the year. Slessor said CPO adoption remains in early stages but represents a significant opportunity as semiconductor companies pursue more efficient data center connectivity solutions. CFO Aric McKinnis said second-quarter non-GAAP gross margin reached 53.3%, up 430 basis points sequentially and nearly 15 percentage points higher than the prior-year period. McKinnis noted that roughly one-third of the sequential margin improvement came from durable cost reductions, one-third from higher revenues and one-third from non-recurring items including tariff refunds and precious metal reclaim benefits. Management said normalized gross margin at current volumes is around 51%, with additional improvement expected from operational execution and the future contribution of the Farmers Branch manufacturing expansion. FormFactor continues preparing its Farmers Branch facility, which is expected to begin ramping in the fourth quarter and continue through 2027. Management said the site will provide additional capacity at a structurally lower cost. McKinnis said the company is improving output from existing facilities through higher yields and cycle-time improvements while managing supply constraints. The company expects Farmers Branch to support growth, with initial targeted capacity roughly equivalent to its current California probe footprint. Analysts questioned management on the company’s exposure to CPU, GPU and hyperscaler opportunities. Slessor said FormFactor is positioned across multiple customer relationships, including data center CPUs, high-performance computing and custom ASIC applications. A TD Cowen analyst asked about sustainable gross margin levels after the quarter’s strong performance. McKinnis clarified that the company views approximately 51% gross margin as the current normalized baseline, with Farmers Branch expected to add further improvement over time. A Citi analyst asked about CPO growth expectations. Slessor said adoption is accelerating but remains difficult to forecast quarter by quarter due to variables including customer adoption rates and test requirements. FormFactor’s management emphasized continued execution around capacity expansion, cost discipline and semiconductor market opportunities. The company expects these efforts to support progress toward its long-term target model of doubling revenues and more than doubling profitability by 2030. FORM’s near-term priorities remain scaling production capacity, supporting demand in AI-related semiconductor applications and improving operational efficiency as new facilities ramp. FORM currently carries a Zacks Rank #3 (Hold). The Zacks Rank is based on earnings estimate revisions and is designed to help identify stocks with stronger potential for near-term performance changes. The rank can change as analysts update estimates following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of F, Growth Score of A, Momentum Score of B and VGM Score of B. Zacks Style Scores range from A to F, with higher scores indicating stronger characteristics for each investing style, while the VGM Score combines Value, Growth and Momentum factors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in FormFactor, Inc.? Here are five stocks we like better. Record second-quarter performance: FormFactor reported revenue of $258.2 million, up 14% sequentially, with non-GAAP gross margin of 53.3% and non-GAAP EPS of $0.82. The company also surpassed a $1 billion annualized revenue run rate and generated $52.6 million in free cash flow. AI-related demand is driving growth: DRAM revenue reached a record, with HBM contributing roughly two-thirds of DRAM sales, while foundry and logic demand benefited from data-center CPUs, networking and hyperscaler custom ASICs. Co-packaged optics adoption is accelerating, prompting the company to raise its 2026 revenue expectations above $20 million. Positive third-quarter outlook and expansion plans: FormFactor expects third-quarter revenue of $270 million, plus or minus $10 million, non-GAAP gross margin of 54% and EPS of $0.86, plus or minus $0.09. Its Farmers Branch, Texas, facility remains on track to ramp at the end of 2026, supporting future capacity and margin expansion. Is Cohu Inc. One of the Cheapest Chip Stocks Around? FormFactor (NASDAQ:FORM) reported record second-quarter revenue, gross profit and earnings per share, as demand for semiconductor test products increased across high-bandwidth memory, data-center computing and co-packaged optics. Chief Executive Officer Mike Slessor said the company surpassed a $1 billion annualized revenue run rate and exceeded 50% gross margin during the quarter, marking progress toward the long-term target model introduced in May. That model calls for revenue of $1.6 billion, non-GAAP gross margin of 55% and non-GAAP earnings per share above $5 by 2030. → This Tiny AI Supplier Could Be More Important Than the Chipmakers “FormFactor's second quarter revenue, gross profit, and earnings per share set all-time records,” Slessor said. He added that the company expects further sequential increases in both revenue and profitability in the third quarter. Revenue for the second quarter was $258.2 million, up $32.1 million, or about 14%, from the first quarter and $18.2 million above the midpoint of the company’s outlook range. Chief Financial Officer Aric McKinnis said the result represented FormFactor’s third consecutive quarterly revenue record. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? GAAP gross margin was 50.7%, compared with 38.4% in the first quarter. The prior-quarter result included $18.8 million in restructuring costs that did not recur in the second quarter. On a non-GAAP basis, gross margin reached 53.3%, up 430 basis points sequentially. McKinnis said roughly one-third of the sequential gross-margin improvement came from durable baseline cost reductions, one-third reflected the $32 million increase in revenue, and one-third came from items not expected to recur, including tariff refunds and precious-metal recovery associated with the shutdown of the company’s Baldwin Park site. → Innovative ETF Strategies That Are Paying Off This Summer Excluding those nonrecurring items and favorable product mix, McKinnis said FormFactor’s normalized non-GAAP gross-margin baseline was about 51% at second-quarter volumes. He said the company expects its Farmers Branch, Texas, manufacturing site to be accretive to gross margins once it comes online. GAAP net income was $56.2 million, or $0.71 per diluted share, compared with $20.4 million, or $0.26 per share, in the first quarter. Non-GAAP net income was $65 million, or $0.82 per diluted share, compared with $44.5 million, or $0.56 per share, in the first quarter. Free cash flow totaled $52.6 million, up from $30.7 million in the prior quarter. Cash and investments increased $42.8 million sequentially to $349 million. Systems-segment revenue reached a record $48.5 million, rising $20.6 million, or 74%, from the first quarter. McKinnis said the recovery reflected stronger engineering-prober demand and accelerating co-packaged optics revenue. FormFactor’s DRAM probe-card business posted another record quarter as demand for HBM4 products increased alongside continued DDR demand. HBM accounted for approximately two-thirds of overall DRAM revenue during the period, according to Slessor. The company said two customers continued to adopt its SmartMatrix full-wafer contactor technology for high-speed HBM4 testing. Slessor said the technology allows customers to test hundreds of completed HBM stacks simultaneously at HBM4 data rates exceeding 10 gigabits per second. For the third quarter, however, FormFactor expects overall DRAM revenue to remain comparable with the second-quarter record while the mix shifts materially toward DDR. Slessor attributed that expected shift to constrained memory supply and increased DDR pricing, which he said is prompting customers to adjust wafer-start mixes toward DDR designs. Foundry and logic probe-card demand also increased significantly from the first quarter, driven primarily by data-center CPU applications, continued networking strength, early momentum in hyperscaler custom ASICs, and steady PC and mobile demand. Slessor said increasing CPU compute intensity associated with agentic AI use cases is creating probe-card opportunities. He cited FormFactor’s incumbent position with a data-center CPU supplier, an expanding relationship with a high-performance-compute leader across networking, GPU and CPU products, and multiple design wins at a large fabless XPU customer. He characterized the company’s current share at the fabless CPU customer as low single digits but said it has additional opportunity over time. Capacity availability could limit the pace of share expansion until Farmers Branch begins ramping, he said. FormFactor increased its outlook for co-packaged optics, or CPO, revenue after seeing faster-than-expected adoption. The company had initially forecast 2026 CPO revenue of $10 million to $20 million but now expects to exceed $20 million by the end of the third quarter and to finish the full year significantly above that level. The growth is being supported by planned increases in CPO chip volumes later in the year and FormFactor’s role in testing photonic integrated-circuit wafers before they are combined with electrical integrated circuits to create optical modules, Slessor said. While he said FormFactor is seeing “strong acceleration” in the business, Slessor did not provide a detailed quarterly CPO forecast for 2027, citing variables including customer adoption, yields and test times. The company has previously identified a CPO served market of about $400 million by 2030. FormFactor’s Farmers Branch facility remains on track to begin ramping at the end of 2026 and continue ramping through 2027. The initial targeted capacity is roughly equivalent to the company’s existing California probe-card manufacturing footprint, McKinnis said. The company expects 2026 cash capital expenditures for Farmers Branch and other capacity additions of $140 million to $170 million. It also expects total pre-production ramp costs of about $25 million to $30 million this year, including roughly $12 million incurred through the second quarter and approximately $7 million expected in the third quarter. McKinnis said FormFactor expects Farmers Branch to be accretive to gross margin after reaching its initial target capacity, which is anticipated by the beginning of 2028. The company has received incentives that include a $24.2 million grant from the Texas Semiconductor Innovation Fund, subject to meeting certain criteria. For the third quarter, FormFactor forecast revenue of $270 million, plus or minus $10 million, and non-GAAP gross margin of 54%, plus or minus 150 basis points. The outlook includes expected tariff refunds that McKinnis said would contribute about 300 basis points to gross margin. The company forecast non-GAAP earnings per diluted share of $0.86, plus or minus $0.09. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "FormFactor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Delivers Record Revenue, Gross Profit and Earnings Per Share;Sees Strong Demand in DRAM, Foundry & Logic and Systems LIVERMORE, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2026 ended June 27, 2026. Quarterly revenues were $258.2 million, an increase of 14.2% compared to $226.1 million in the first quarter of fiscal 2026, and an increase of 31.9% from $195.8 million in the second quarter of fiscal 2025. Produced revenue, gross margins and earnings per share exceeding the high end of the GAAP and Non-GAAP outlook range Experienced broad-based demand, with strength in key growth initiatives including High Bandwidth Memory and Co-Packaged Optics driving sequential revenue increases in both the Probe Cards and Systems segments, respectively Announced expanded multi-year partnership with Keystone Microtech, reinforcing FormFactor's presence in the strategically important Taiwan semiconductor ecosystem “Over the past four quarters, FormFactor has grown revenue more than 30%, expanded Non-GAAP gross margin 1,500 basis points, and tripled earnings per share,” said Mike Slessor, CEO of FormFactor, Inc. “These improvements reflect years of investment to create and expand our unique position at the intersection of high-performance compute and advanced packaging, coupled with stronger execution to enhance profitability and drive operating leverage.” Second Quarter Highlights On a GAAP basis, net income for the second quarter of fiscal 2026 was $56.2 million, or $0.71 per fully-diluted share, compared to net income for the first quarter of fiscal 2026 of $20.4 million, or $0.26 per fully-diluted share, and net income for the second quarter of fiscal 2025 of $9.1 million, or $0.12 per fully-diluted share. Gross margin for the second quarter of 2026 was 50.7%, compared with 38.4% in the first quarter of 2026, and 37.3% in the second quarter of 2025. On a non-GAAP basis, net income for the second quarter of fiscal 2026 was $65.0 million, or $0.82 per fully-diluted share, compared to net income for the first quarter of fiscal 2026 of $44.5 million, or $0.56 per fully-diluted share, and net income for the second quarter of fiscal 2025 of $21.2 million, or $0.27 per fully-diluted share. On a non-GAAP basis, gross margin for the second quarter of 2026 was 53.3%, compared with 49.0% in the first quarter of 2026, and 38.5% in the second quarter of 2025. GAAP net cash provided by operating activities for the second quarter of fiscal 2026 was $61.8 million, compared to $45.0 million for the first quarter of fiscal 2026, and $18.9 million for the second quarter of fiscal 2025. Free cash flow for the second quarter of fiscal 2026 was $52.6 million, compared to free cash flow for the first quarter of fiscal 2026 of $30.7 million, and free cash flow for the second quarter of 2025 of negative $47.1 million. A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below. Outlook Dr. Slessor added, “As we look ahead to the third quarter, we continue to see strong demand across our end markets, with particular strength in Foundry & Logic and continued momentum in our Systems business, positioning us for another quarter of record revenue and profitability.” For the third quarter ending September 26, 2026, FormFactor is providing the following outlook*: *This outlook assumes consistent foreign currency rates.**Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts. We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today. The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com. Use of Non-GAAP Financial Information: To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and six months ended June 27, 2026, and for outlook provided before, as well as for the comparable period of fiscal 2025, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management's reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below. About FormFactor: FormFactor, Inc. (Nasdaq: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle - from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to optimize device performance and advance yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com. Forward-looking Statements: This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, market demand, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, the Company's performance, the Company's business strategies, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and “prospect,” and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions and investments; demand volatility and cyclicality of the industry; advancement of artificial intelligence; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise. About our Non-GAAP Financial Measures: We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understand financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” included in this press release. Source: FormFactor, Inc.FORM-F Investor Contact:Stan FinkelsteinInvestor Relations(925) [email protected]

FormFactor (FORM) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +34.43%. A quarter ago, it was expected that this integrated circuits diagnostic company would post earnings of $0.45 per share when it actually produced earnings of $0.56, delivering a surprise of +24.44%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. FormFactor, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $258.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.55%. This compares to year-ago revenues of $195.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FormFactor shares have added about 58.2% since the beginning of the year versus the S&P 500's gain of 8.5%. While FormFactor has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FormFactor was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $244.13 million in revenues for the coming quarter and $2.40 on $958.05 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Allegro MicroSystems, Inc. (ALGM), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +133.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Allegro MicroSystems, Inc.'s revenues are expected to be $252.99 million, up 24.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research