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FormFactor (FORM) Up 4.6% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for FormFactor (FORM - Free Report) . 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.
FORM's Probe Card Revenues Advance
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.
FORM's DRAM Business Sets Another Record
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.
FormFactor's Systems Segment Rebounds
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.
FORM's Margins Show Operating Leverage
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.
FormFactor's Cash Flow and Liquidity Improve
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.
FORM Offers Upbeat Q3 Guidance
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).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 52.16% due to these changes.
VGM Scores
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.
Outlook
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.
Performance of an Industry Player
FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR - Free Report) , 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.
View the Zacks #1 Rank List
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FormFactor (FORM) Up 4.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for FormFactor (FORM - Free Report) . 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's Q2 Earnings Beat Estimates, Revenues Increase Y/Y
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.
FORM's Probe Card Revenues Advance
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.
FORM's DRAM Business Sets Another Record
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.
FormFactor's Systems Segment Rebounds
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.
FORM's Margins Show Operating Leverage
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.
FormFactor's Cash Flow and Liquidity Improve
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.
FORM Offers Upbeat Q3 Guidance
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).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 52.16% due to these changes.
VGM Scores
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.
Outlook
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.
Performance of an Industry Player
FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Amkor Technology (AMKR - Free Report) , 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.