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The company expects third-quarter 2026 earnings to be 86 cents (+/- 9 cents) per share. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained steady at 86 cents per share over the past 30 days, suggesting 160.6% growth from the figure reported in the year-ago quarter.
FormFactor expects third-quarter 2026 revenues to be $270 million (+/- $10 million). The Zacks Consensus Estimate for third-quarter revenues is pegged at $270.6 million, indicating an increase of 33.5% from the figure reported in the year-ago quarter.
Consensus Estimate Trend
Image Source: Zacks Investment Research
FormFactor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 30.58%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Drive FORM’s Q3 Results
FormFactor’s third-quarter 2026 top-line growth is expected to have benefited from strong foundry and logic demand, sustained DRAM activity and growing co-packaged optics (CPO) adoption. Accelerating demand for advanced probe cards used in data center CPUs, networking processors and custom AI accelerators is expected to have driven top-line growth. Increasing compute intensity associated with agentic AI workloads has been driving demand for high-performance CPUs and sophisticated semiconductor testing solutions.
FormFactor’s third-quarter 2026 performance is expected to have benefited from sustained DRAM probe card demand, particularly for DDR5 applications. Strong memory pricing and constrained supply have encouraged DRAM manufacturers to shift wafer production toward DDR products to capitalize on higher profitability. Although FORM anticipated a product-mix shift away from high-bandwidth memory (HBM), overall DRAM probe card revenues were expected to remain near the record second-quarter level of $85 million.
FORM’s expanding relationships with leading compute providers, combined with multiple design wins at a major fabless XPU customer, are likely to have supported top-line growth in the to-be-reported quarter. Growing testing complexity for DRAM and the company’s established relationships with major memory manufacturers are likely to have supported revenues in the third quarter of 2026. Increasing semiconductor manufacturing activity in Taiwan, particularly in advanced logic, GPU and custom ASIC applications, is also expected to have benefited FORM’s top-line growth.
Moreover, strong demand for CPO testing solutions is expected to have driven FormFactor’s third-quarter Systems segment revenues. Increasing deployment of optical interconnect technologies in AI data centers is driving demand for advanced silicon photonics testing equipment. FormFactor’s leadership in early-stage photonic integrated circuit wafer testing and increasing adoption of its Triton high-volume manufacturing platform have been significant growth drivers. The company previously expected CPO revenues of $10 million to $20 million in 2026 but subsequently projected that revenues would exceed $20 million by the end of the third quarter.
FormFactor’s third-quarter profitability is expected to have benefited from improved manufacturing yields, shorter production cycle times and disciplined operating spending. The company has strengthened its cost structure while increasing output from existing facilities. FORM also anticipated approximately $7-$9 million of tariff refunds during the third quarter, providing a temporary benefit of roughly 300 basis points to gross margin. However, unfavorable DRAM product mix could have partially offset these gains in the to-be-reported quarter. FormFactor continues to face manufacturing capacity constraints as demand accelerates across advanced semiconductor testing applications.
FORM Shares Beat Sector, Valuation Stretched
FormFactor shares have appreciated 76.6% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 14%.
FORM has underperformed Cohu (COHU - Free Report) but outperformed Teradyne (TER - Free Report) and KLA (KLAC - Free Report) , YTD. While Cohu shares have jumped 106.1%, Teradyne and KLA shares have appreciated 59.5% and 19.8%, respectively, over the same time frame.
FORM Stock’s Price Performance
Image Source: Zacks Investment Research
FORM stock is overvalued, as suggested by the Value Score of F. In terms of the forward 12-month price-to-sales (P/S), the company is trading at 6.54X compared with the broader sector’s 5.47X. Shares of Cohu, Teradyne and KLA trade at 3.84X, 10.86X and 15.71X, respectively.
FORM Stock’s Valuation
Image Source: Zacks Investment Research
AI Infrastructure & Advanced Packaging Aids FORM’s Prospects
FormFactor is benefiting from increasing investments in AI infrastructure, high-performance computing and advanced semiconductor packaging. The adoption of chiplet architectures in GPUs, CPUs and custom accelerators is significantly increasing semiconductor testing requirements. Each chiplet must undergo extensive testing before integration into advanced packages, creating additional demand for high-performance probe cards. The company's differentiated microelectromechanical systems (MEMS) technology enables testing at higher speeds, currents and temperatures.
Growing adoption of HBM4 and future HBM generations in AI accelerators is a tailwind. FORM’s SmartMatrix full-wafer contactor technology enables simultaneous high-speed testing of hundreds of HBM stacks, improving throughput and manufacturing efficiency. The company is well-positioned to capitalize on increasing adoption of custom AI accelerators and next-generation GPUs. Rising power consumption, operating temperatures and testing complexity are encouraging customers to transition from conventional wire-based probe cards to advanced MEMS technologies. FormFactor has indicated that custom ASIC adoption of advanced MEMS probe cards is expected to accelerate from 2027.
FormFactor’s manufacturing expansion in Farmers Branch, TX, is expected to strengthen its long-term growth prospects by increasing production capacity and improving manufacturing efficiency. The facility is scheduled to begin production late in the fourth quarter of 2026, with capacity ramping throughout 2027. The expansion will support growing demand for advanced MEMS probe cards used in GPUs, custom ASICs and next-generation memory products. The company’s growing presence in strengthens its position in the global advanced semiconductor manufacturing ecosystem.
Conclusion
FormFactor's strong exposure to AI infrastructure, advanced packaging and growing demand for semiconductor testing solutions bodes well for its long-term prospects. However, manufacturing capacity constraints, unfavorable DRAM product mix and elevated operating expenses remain concerns. Moreover, FORM's stretched valuation and significant YTD share price appreciation limit near-term upside potential. Investors may consider holding the stock ahead of third-quarter earnings, awaiting greater clarity on sustainable margin expansion and capacity improvements.
View the Zacks #1 Rank List
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FormFactor Stock Before Q3 Earnings: Smart Buy or Risky Move?
Key Takeaways
FormFactor (FORM - Free Report) is set to report its third-quarter 2026 results on Oct. 28.
The company expects third-quarter 2026 earnings to be 86 cents (+/- 9 cents) per share. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained steady at 86 cents per share over the past 30 days, suggesting 160.6% growth from the figure reported in the year-ago quarter.
FormFactor expects third-quarter 2026 revenues to be $270 million (+/- $10 million). The Zacks Consensus Estimate for third-quarter revenues is pegged at $270.6 million, indicating an increase of 33.5% from the figure reported in the year-ago quarter.
Consensus Estimate Trend
Image Source: Zacks Investment Research
FormFactor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 30.58%.
FormFactor, Inc. Price and EPS Surprise
FormFactor, Inc. price-eps-surprise | FormFactor, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Drive FORM’s Q3 Results
FormFactor’s third-quarter 2026 top-line growth is expected to have benefited from strong foundry and logic demand, sustained DRAM activity and growing co-packaged optics (CPO) adoption. Accelerating demand for advanced probe cards used in data center CPUs, networking processors and custom AI accelerators is expected to have driven top-line growth. Increasing compute intensity associated with agentic AI workloads has been driving demand for high-performance CPUs and sophisticated semiconductor testing solutions.
FormFactor’s third-quarter 2026 performance is expected to have benefited from sustained DRAM probe card demand, particularly for DDR5 applications. Strong memory pricing and constrained supply have encouraged DRAM manufacturers to shift wafer production toward DDR products to capitalize on higher profitability. Although FORM anticipated a product-mix shift away from high-bandwidth memory (HBM), overall DRAM probe card revenues were expected to remain near the record second-quarter level of $85 million.
FORM’s expanding relationships with leading compute providers, combined with multiple design wins at a major fabless XPU customer, are likely to have supported top-line growth in the to-be-reported quarter. Growing testing complexity for DRAM and the company’s established relationships with major memory manufacturers are likely to have supported revenues in the third quarter of 2026. Increasing semiconductor manufacturing activity in Taiwan, particularly in advanced logic, GPU and custom ASIC applications, is also expected to have benefited FORM’s top-line growth.
Moreover, strong demand for CPO testing solutions is expected to have driven FormFactor’s third-quarter Systems segment revenues. Increasing deployment of optical interconnect technologies in AI data centers is driving demand for advanced silicon photonics testing equipment. FormFactor’s leadership in early-stage photonic integrated circuit wafer testing and increasing adoption of its Triton high-volume manufacturing platform have been significant growth drivers. The company previously expected CPO revenues of $10 million to $20 million in 2026 but subsequently projected that revenues would exceed $20 million by the end of the third quarter.
FormFactor’s third-quarter profitability is expected to have benefited from improved manufacturing yields, shorter production cycle times and disciplined operating spending. The company has strengthened its cost structure while increasing output from existing facilities. FORM also anticipated approximately $7-$9 million of tariff refunds during the third quarter, providing a temporary benefit of roughly 300 basis points to gross margin. However, unfavorable DRAM product mix could have partially offset these gains in the to-be-reported quarter. FormFactor continues to face manufacturing capacity constraints as demand accelerates across advanced semiconductor testing applications.
FORM Shares Beat Sector, Valuation Stretched
FormFactor shares have appreciated 76.6% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 14%.
FORM has underperformed Cohu (COHU - Free Report) but outperformed Teradyne (TER - Free Report) and KLA (KLAC - Free Report) , YTD. While Cohu shares have jumped 106.1%, Teradyne and KLA shares have appreciated 59.5% and 19.8%, respectively, over the same time frame.
FORM Stock’s Price Performance
Image Source: Zacks Investment Research
FORM stock is overvalued, as suggested by the Value Score of F. In terms of the forward 12-month price-to-sales (P/S), the company is trading at 6.54X compared with the broader sector’s 5.47X. Shares of Cohu, Teradyne and KLA trade at 3.84X, 10.86X and 15.71X, respectively.
FORM Stock’s Valuation
Image Source: Zacks Investment Research
AI Infrastructure & Advanced Packaging Aids FORM’s Prospects
FormFactor is benefiting from increasing investments in AI infrastructure, high-performance computing and advanced semiconductor packaging. The adoption of chiplet architectures in GPUs, CPUs and custom accelerators is significantly increasing semiconductor testing requirements. Each chiplet must undergo extensive testing before integration into advanced packages, creating additional demand for high-performance probe cards. The company's differentiated microelectromechanical systems (MEMS) technology enables testing at higher speeds, currents and temperatures.
Growing adoption of HBM4 and future HBM generations in AI accelerators is a tailwind. FORM’s SmartMatrix full-wafer contactor technology enables simultaneous high-speed testing of hundreds of HBM stacks, improving throughput and manufacturing efficiency. The company is well-positioned to capitalize on increasing adoption of custom AI accelerators and next-generation GPUs. Rising power consumption, operating temperatures and testing complexity are encouraging customers to transition from conventional wire-based probe cards to advanced MEMS technologies. FormFactor has indicated that custom ASIC adoption of advanced MEMS probe cards is expected to accelerate from 2027.
FormFactor’s manufacturing expansion in Farmers Branch, TX, is expected to strengthen its long-term growth prospects by increasing production capacity and improving manufacturing efficiency. The facility is scheduled to begin production late in the fourth quarter of 2026, with capacity ramping throughout 2027. The expansion will support growing demand for advanced MEMS probe cards used in GPUs, custom ASICs and next-generation memory products. The company’s growing presence in strengthens its position in the global advanced semiconductor manufacturing ecosystem.
Conclusion
FormFactor's strong exposure to AI infrastructure, advanced packaging and growing demand for semiconductor testing solutions bodes well for its long-term prospects. However, manufacturing capacity constraints, unfavorable DRAM product mix and elevated operating expenses remain concerns. Moreover, FORM's stretched valuation and significant YTD share price appreciation limit near-term upside potential. Investors may consider holding the stock ahead of third-quarter earnings, awaiting greater clarity on sustainable margin expansion and capacity improvements.
FORM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.