FormFactor Beats High End of Third-Quarter Outlook

The Tip Desk · November 1, 2026 · 2 min read

Revenue reached a fourth straight quarterly record at $280.5 million as GAAP net income was $0.93 a share.

FormFactor, Inc. (FORM), a provider of semiconductor test and measurement technologies, reported third-quarter revenue of $280.5 million, a fourth consecutive quarterly record that exceeded the high end of its $270 million plus or minus $10 million outlook.

The company said the quarter delivered growth in revenue, gross margin, and earnings per share above the high end of guidance. Sequential revenue growth slowed to 8.6% from 14.2% in the second quarter, while year-over-year growth accelerated to 38.4% from 31.9%.

GAAP net income was $73.8 million, or $0.93 a share, compared with $56.2 million, or $0.71 a share, in the second quarter. Non-GAAP net income was $82.3 million, or $1.04 a share.

GAAP gross margin expanded to 54.7% from 50.7% in the prior quarter. Non-GAAP gross margin was 56.5%. GAAP operating income rose to $81.6 million from $57.8 million. Factory start-up costs were $6.4 million, up from $4.9 million.

Foundry & Logic revenue grew 10% sequentially, which the company attributed to broad-based strength across multiple end applications. Systems segment revenue grew greater than 20% sequentially on higher demand for co-packaged optics.

GAAP operating cash flow was $104.3 million. Free cash flow was $64.8 million. Capital expenditures were $39.6 million in the quarter.

Chief Executive Officer Mike Slessor said the results underscored a diversified leadership position at the intersection of high-performance compute and advanced packaging, and the company’s ability to meet rising customer demand by increasing output within its existing manufacturing footprint.

Following quarter-end, FormFactor announced an expansion of its longstanding partnership with Teradyne aimed at accelerating development, validation, and high-volume production of next-generation semiconductor applications enabling high-performance compute.

For the fourth quarter ending December 26, 2026, the company is providing an outlook of revenue of $285 million plus or minus $10 million, GAAP gross margin of 52.3% plus or minus 1.5% (non-GAAP 54.0% plus or minus 1.5%), and GAAP diluted earnings of $0.84 plus or minus $0.09 a share (non-GAAP $0.95 plus or minus $0.09). The outlook assumes consistent foreign currency rates.

Slessor said the fourth-quarter outlook reflects continued broad-based strength in demand. He said productivity gains from the existing manufacturing footprint are moderating as the company approaches capacity limits, and that it is bringing its new Farmers Branch factory online to provide additional capacity to support growth.