FormFactor (NASDAQ:FORM – Get Free Report) released its quarterly earnings data on Wednesday. The semiconductor company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.11, FiscalAI reports. FormFactor had a net margin of 6.93% and a return on equity of 6.64%. The company had revenue of $226.14 million during the quarter, compared to the consensus estimate of $225.20 million. During the same period in the previous year, the firm earned $0.23 earnings per share. FormFactor’s revenue for the quarter was up 31.9% on a year-over-year basis. FormFactor updated its Q2 2026 guidance to 0.570-0.650 EPS.
Here are the key takeaways from FormFactor’s conference call:
- FormFactor beat expectations with Q1 revenue of $226.1M, achieved a run-rate ~49% non-GAAP gross margin (above its 47% target), and guided Q2 to roughly $240M revenue with ~49.5% non-GAAP gross margin and $0.61 non-GAAP EPS.
- Management attributes sustained margin gains to operational improvements and restructuring (a cumulative >1,000 bps gross-margin improvement over three quarters) and plans to expand capacity with the Farmers Branch site coming online late 2026 and ramping through 2027 (2026 CapEx of $140–170M).
- Market momentum is broadening — faster adoption of FormFactor’s SmartMatrix for HBM at?speed stack testing, rising foundry/logic probe?card demand from networking and data?center CPUs (AI inference), progress on GPU qualifications, and acceleration in CPO (TRITON) and Keystone Photonics integration support further share gains.
- A portion of the outperformance was timing?related and due to tariff changes; tariffs remain a headwind (~140 bps assumed in Q2 outlook), Q1 included $21.5M of restructuring charges that reduced GAAP income, and a potential $9–11M tariff refund has not been recognized.
FormFactor Stock Performance
Shares of FormFactor stock traded down $4.30 during trading on Thursday, hitting $131.23. 2,504,951 shares of the stock were exchanged, compared to its average volume of 1,579,472. The stock’s fifty day moving average is $108.78 and its 200 day moving average is $78.20. The stock has a market cap of $10.23 billion, a PE ratio of 189.34 and a beta of 1.04. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.60 and a current ratio of 4.50. FormFactor has a 12 month low of $26.08 and a 12 month high of $159.09.
Wall Street Analysts Forecast Growth
Check Out Our Latest Stock Report on FORM
Insider Buying and Selling at FormFactor
In other news, Director Dennis Thomas St sold 7,431 shares of the company’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $93.84, for a total transaction of $697,325.04. Following the completion of the transaction, the director owned 31,526 shares in the company, valued at approximately $2,958,399.84. This represents a 19.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Sheri Rhodes sold 7,634 shares of the company’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $92.61, for a total transaction of $706,984.74. Following the transaction, the director owned 10,356 shares of the company’s stock, valued at $959,069.16. This represents a 42.43% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 64,482 shares of company stock valued at $6,438,951. Corporate insiders own 0.79% of the company’s stock.
Hedge Funds Weigh In On FormFactor
Institutional investors have recently modified their holdings of the company. Los Angeles Capital Management LLC bought a new position in FormFactor in the 4th quarter valued at about $25,000. UMB Bank n.a. grew its position in FormFactor by 128.9% in the 4th quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company’s stock valued at $28,000 after buying an additional 281 shares in the last quarter. Kestra Advisory Services LLC bought a new position in FormFactor in the 4th quarter valued at about $53,000. EverSource Wealth Advisors LLC grew its position in FormFactor by 208.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,843 shares of the semiconductor company’s stock valued at $63,000 after buying an additional 1,246 shares in the last quarter. Finally, Wexford Capital LP bought a new position in FormFactor in the 3rd quarter valued at about $100,000. Institutional investors own 98.76% of the company’s stock.
Key FormFactor News
Here are the key news stories impacting FormFactor this week:
- Positive Sentiment: Q1 results beat and company report of record revenue — FORM reported $0.56 EPS vs. $0.45 consensus and delivered record quarterly revenue with gross margins and EPS above its outlook; revenue rose ~31.9% YoY, signaling strong demand. GlobeNewswire: Q1 Results
- Positive Sentiment: Raised Q2 guidance well above Street — management set Q2 EPS of $0.57–$0.65 vs. consensus ~$0.42 and revenue guidance $235–$245M vs. ~$227.7M, suggesting continued demand momentum. MarketBeat: Q1 Release & Guidance
- Neutral Sentiment: Analyst note: Needham maintains a Hold — the firm acknowledged solid Q1 and long?term drivers but cites stretched valuation as the reason to keep a neutral stance. TipRanks: Needham Hold
- Neutral Sentiment: Price target revision — a published note shows a raised price target (to 103.59), which is an upward revision but remains below the current market price, creating mixed signaling for investors. MSN: Price Target Update
- Neutral Sentiment: Industry/market mentions — recent market reports include FormFactor in analyses of silicon photonics and optical I/O test markets, supporting long?term TAM narratives but not delivering immediate stock catalysts. Market Report: Future Market Insights
- Negative Sentiment: Analyst downgrade from Zacks — Zacks cut FormFactor from “strong-buy” to “hold,” which can pressure momentum traders and reflects concerns about stretched valuation versus the rally. Zacks: Rating Change
- Negative Sentiment: Valuation concerns — FORM’s elevated P/E and premium multiple (recently cited by analysts) are tempering enthusiasm despite strong fundamentals, making the stock more sensitive to analyst commentary and profit?taking.
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.
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