Analysis FORM
FormFactor's chip-testing boom needs more factory space
FormFactor beat its July targets as chip-testing demand lifted sales and margins. Existing factories are nearing their limits, while a new site adds capacity and costs.
Ticker Byline
FormFactor, Inc.
FormFactor supplies semiconductor probe cards and test-and-measurement systems used to develop and manufacture chips.
- Ticker
- FORM
- Exchange
- XNAS
- SEC CIK
- 0001039399
Business and manufacturing
FormFactor, Inc. trades on Nasdaq under FORM. It makes probe cards and test-and-measurement systems used across semiconductor development and production. Its products help customers assess chip performance and manufacturing yields.
Latest financial snapshot
Fiscal quarters ended September 27, 2025, June 27, 2026 and September 26, 2026. Dollar figures are millions unless stated otherwise. Each column covers one quarter.
| Metric | Q3 2025 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Revenue | $202.7 | $258.2 | $280.5 |
| Reported net income | $15.7 | $56.2 | $73.8 |
| Reported gross margin | 39.8% | 50.7% | 54.7% |
| Adjusted earnings per share | $0.33 | $0.82 | $1.04 |
| Operating cash flow | $27.0 | $61.8 | $104.3 |
| Capital spending | $7.5 | $9.6 | $39.6 |
Adjusted earnings remove specified restructuring, share-based pay, acquired-asset and transaction costs, net of tax. They supplement reported results.
The July outlook called for Q3 revenue of $260 million to $280 million and adjusted earnings of 77 to 95 cents a share. Actual results exceeded both ranges. A year earlier, management had committed to continued margin improvements through 2026; both the annual and sequential comparisons above show progress.
Capacity and outlook
After four consecutive quarterly revenue records, management says productivity gains from the existing factories are moderating as they approach capacity limits. The company is bringing its Farmers Branch factory online. Its Q2 filing expected production there to start ramping up late in Q4 2026. Third-quarter factory start-up costs were $6.4 million, compared with about $1 million a year earlier.
The fourth-quarter outlook is revenue of $275 million to $295 million, reported gross margin of 50.8% to 53.8%, reported earnings of 75 to 93 cents a share and adjusted earnings of 86 cents to $1.04. These are management forecasts. The revenue midpoint is above Q3, while the gross-margin range is below the latest result.
At the next results, the concrete checks are whether Farmers Branch production began ramping up late in Q4 and how actual revenue and gross margin compare with those ranges.
Cash and borrowing
At September 26, FormFactor held $138.2 million in cash and $257.2 million in marketable securities. Current and long-term debt totaled about $11.4 million, net of issuance costs. Those are balance-sheet amounts, separate from quarterly cash generation and spending.
Latest reporting