FORMFACTOR INC (FORM): Results of Operations and Financial Condition
FORMFACTOR INC (FORM) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.01 News Release Investor Contact: Stan Finkelstein Investor Relations (925) 290-4273 ir@formfactor.com FORMFACTOR, INC. REPORTS 2026 SECOND QUARTER RESULTS Delivers Record Revenue, Gross Profit and Earnings Per Share; Sees Strong Demand in DRAM, Foundry & Logic and Sys
How this was made
The 30-second read
Why it matters
The key tradable inputs are the quantified Q2 performance (revenue, margins, GAAP and non-GAAP EPS) and the explicit Q3 outlook for revenue, gross margin, and diluted EPS, which can drive estimate revisions and near-term positioning.
Market read
Record Q2 metrics and a specific Q3 profitability outlook provide a fresh catalyst for trading around earnings expectations.
What to watch
Watch the gap between GAAP and non-GAAP profitability, and whether the Q3 gross margin assumption (52.0% GAAP, 54.0% non-GAAP) is sensitive to mix or FX, since the outlook explicitly assumes consistent foreign currency rates.
FORMFACTOR, INC. REPORTS 2026 SECOND QUARTER RESULTS Delivers Record Revenue, Gross Profit and Earnings Per Share; Sees Strong Demand in DRAM, Foundry & Logic and Systems
Revenue increased 14.2% sequentially and 31.9% year over year, while GAAP and non-GAAP gross margins expanded materially. GAAP and non-GAAP net income, operating cash flow and free cash flow also increased versus both comparison quarters, and third-quarter guidance calls for higher revenue and gross margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $258.2 million | 14.2% | 31.9% |
| Cost of revenuesGAAP | $127,320 (In thousands) | – | – |
| Gross profitGAAP | $130,922 (In thousands) | – | – |
| Gross marginGAAP | 50.7% | – | – |
| Research and development expenseGAAP | $31,099 (In thousands) | – | – |
| Selling, general and administrative expenseGAAP | $37,165 (In thousands) | – | – |
| Factory start-up costsGAAP | $4,859 (In thousands) | – | – |
| Total operating expensesGAAP | $73,123 (In thousands) | – | – |
| Operating incomeGAAP | $57,799 (In thousands) | – | – |
| Interest income, netGAAP | $2,683 (In thousands) | – | – |
| Other income (expense), netGAAP | $212 (In thousands) | – | – |
| Income before income taxes and equity investmentGAAP | $60,694 (In thousands) | – | – |
| Provision for income taxesGAAP | $6,729 (In thousands) | – | – |
| Income (loss) from equity investmentGAAP | $2,242 (In thousands) | – | – |
| Net incomeGAAP | $56.2 million | – | – |
| Net income per basic shareGAAP | $0.72 | – | – |
| Net income per diluted shareGAAP | $0.71 | – | – |
| Weighted-average shares used in basic per-share calculationsGAAP | 78,036 (In thousands) | – | – |
| Weighted-average shares used in diluted per-share calculationsGAAP | 79,607 (In thousands) | – | – |
| Non-GAAP gross profitnon-GAAP | $137,619 (In thousands) | – | – |
| Non-GAAP gross marginnon-GAAP | 53.3% | – | – |
| Non-GAAP net incomenon-GAAP | $65.0 million | – | – |
| Non-GAAP net income per fully-diluted sharenon-GAAP | $0.82 per fully-diluted share | – | – |
| Net cash provided by operating activitiesGAAP | $61.8 million | – | – |
| Free cash flownon-GAAP | $52.6 million | – | – |
| Six months ended June 27, 2026 revenueGAAP | $484,386 (In thousands) | – | – |
| Six months ended June 27, 2026 gross profitGAAP | $217,716 (In thousands) | – | – |
| Six months ended June 27, 2026 operating incomeGAAP | $74,447 (In thousands) | – | – |
| Six months ended June 27, 2026 net incomeGAAP | $76,591 (In thousands) | – | – |
| Six months ended June 27, 2026 diluted net income per shareGAAP | $0.96 | – | – |
third quarter ending September 26, 2026 outlook
- Revenue$270 million +/- $10 million
- Gross marginGAAP: 52.0% +/- 1.5%; Non-GAAP: 54.0% +/- 1.5%
- NoteGAAP reconciling items: $5.3 million
- NoteGAAP net income per diluted share: $0.75 +/- $0.09
- NoteGAAP reconciling items for net income per diluted share: $0.11
- NoteNon-GAAP net income per diluted share: $0.86 +/- $0.09
- NoteThis outlook assumes consistent foreign currency rates.
What drove it
- Broad-based demand, including strength in High Bandwidth Memory and Co-Packaged Optics, drove sequential revenue increases in both the Probe Cards and Systems segments.
- Management cited strong demand across end markets, with particular strength in Foundry & Logic and continued momentum in Systems.
- The company announced an expanded multi-year partnership with Keystone Microtech, reinforcing its presence in the Taiwan semiconductor ecosystem.
- Gross-margin improvement reflected lower restructuring charges versus the first quarter in the reported GAAP-to-non-GAAP reconciliation.
Concerns
- The filing identifies export controls, tariffs, other trade barriers, including US-China restrictions, and supply-chain disruption as risks.
- The filing identifies customer-specific demand, demand volatility and cyclicality, customer acceptance of new technologies, and research-and-development delays as risks.
- Factory start-up costs were $4,859 (In thousands), compared with $357 (In thousands) in the second quarter of fiscal 2025.
What to watch
- Execution against third-quarter revenue outlook of $270 million +/- $10 million.
- Whether GAAP gross margin reaches the third-quarter outlook of 52.0% +/- 1.5% and non-GAAP gross margin reaches 54.0% +/- 1.5%.
- Demand progression in Foundry & Logic, DRAM, Probe Cards and Systems.
- The effect of export controls, tariffs and other international trade restrictions on sales, costs and supply chain.
Balance sheet and cash flow
- GAAP net cash provided by operating activities was $61.8 million, compared to $45.0 million for the first quarter of fiscal 2026 and $18.9 million for the second quarter of fiscal 2025.
- Free cash flow was $52.6 million, compared to $30.7 million for the first quarter of fiscal 2026 and negative $47.1 million for the second quarter of 2025.
Analysis
FormFactor reported second-quarter revenue of $258.2 million, up 14.2% from the first quarter and 31.9% from the second quarter of fiscal 2025. The company characterized demand as broad-based and identified High Bandwidth Memory and Co-Packaged Optics as contributors to sequential revenue growth in Probe Cards and Systems, respectively. Management also cited particular strength in Foundry & Logic and continued Systems momentum heading into the third quarter.
Profitability increased sharply. GAAP gross margin was 50.7%, versus 38.4% in the first quarter and 37.3% in the prior-year quarter, while non-GAAP gross margin was 53.3%, versus 49.0% and 38.5%, respectively. GAAP operating income was $57,799 (In thousands), compared with $16,648 (In thousands) in the first quarter and $12,306 (In thousands) a year earlier. The reconciliation shows restructuring charges of $4,292 (In thousands), lower than $21,498 (In thousands) in the first quarter, as an important factor in the sequential difference between GAAP and non-GAAP gross profit.
GAAP net income was $56.2 million, or $0.71 per fully-diluted share, compared with $20.4 million, or $0.26 per fully-diluted share, in the first quarter and $9.1 million, or $0.12 per fully-diluted share, a year earlier. Non-GAAP net income was $65.0 million, or $0.82 per fully-diluted share, compared with $44.5 million, or $0.56 per fully-diluted share, in the first quarter and $21.2 million, or $0.27 per fully-diluted share, in the prior-year quarter. Operating cash flow was $61.8 million and free cash flow was $52.6 million, both higher than the reported comparison periods.
For the third quarter ending September 26, 2026, FormFactor guided revenue to $270 million +/- $10 million. It guided GAAP gross margin to 52.0% +/- 1.5% and non-GAAP gross margin to 54.0% +/- 1.5%, with GAAP net income per diluted share of $0.75 +/- $0.09 and non-GAAP net income per diluted share of $0.86 +/- $0.09. The outlook assumes consistent foreign currency rates. Management stated that second-quarter revenue, gross margins and earnings per share exceeded the high end of its GAAP and non-GAAP outlook ranges, but the prior outlook ranges were not provided in the filing text.
Management, verbatim
Over the past four quarters, FormFactor has grown revenue more than 30%, expanded Non-GAAP gross margin 1,500 basis points, and tripled earnings per share.
Mike Slessor, CEO of FormFactor, Inc.
As we look ahead to the third quarter, we continue to see strong demand across our end markets, with particular strength in Foundry & Logic and continued momentum in our Systems business, positioning us for another quarter of record revenue and profitability.
Dr. Slessor
Not in the filing
stated, not guessed- Prior-quarter and prior-year percentage changes for cost of revenues, gross profit, operating expenses, operating income, net income, earnings per share, operating cash flow and free cash flow were not printed for those specific line items.
- Segment revenue, segment year-over-year changes and segment sequential changes were not included in the filing text. The company stated that the breakdown was posted on its website.
- Cash balance, debt balance, capital expenditures, share repurchases, dividends and other capital-return information were not included in the filing text.
- Third-quarter operating-expense guidance and tax-rate guidance were not provided.
- The prior-quarter outlook ranges needed to compare actual results with prior guidance were not provided.
- The filing text is truncated within the non-GAAP reconciliation tables, so the remaining non-GAAP operating-expense, operating-income, tax and per-share reconciliation line items are not available.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is FormFactor’s SEC-filed 8-K with an attached earnings release (Item 2.02) covering Q2 FY2026 results and Q3 guidance.
Ticker impact
FormFactor reported Q2 FY2026 revenue of $258.2M, gross margin 50.7%, and guided Q3 non-GAAP EPS to $0.86 +/- $0.09.
Bias toward upside or reduced downside risk versus prior expectations, with follow-through dependent on whether the market focuses on GAAP vs non-GAAP and the outlook range.
The filing is a primary earnings release with quantified results and forward guidance (revenue, gross margin, and EPS) plus commentary on demand strength in DRAM, foundry and logic, and systems.
Market effects
Strength in probe cards and systems tied to HBM and co-packaged optics can be read across to semiconductor test and advanced packaging demand.
No direct regional macro catalyst, but the mention of Taiwan ecosystem presence via Keystone Microtech may support sentiment around Asia-linked supply chains.
As a semiconductor test equipment supplier, improved guidance can modestly influence sentiment for the broader semiconductor equipment/test subsegment.
Counterpoint
Investors may discount non-GAAP strength if GAAP margins and net income volatility remain elevated or if demand commentary outpaces the outlook range.
Key entities
- companyFormFactor, Inc.
Nasdaq-listed semiconductor test and measurement technology provider reporting Q2 FY2026 results and issuing Q3 guidance.
- business_partnerKeystone Microtech
Partner referenced in an expanded multi-year partnership tied to FormFactor’s presence in the Taiwan semiconductor ecosystem.
