FormFactor sinks despite offering up strong Q3 results, guidance (FORM:NASDAQ)

Freedom Capital upgraded FormFactor (NASDAQ: FORM) to Buy with a $140 price target, citing undervaluation and strong long-term outlook. The stock has fallen 13% in a week and 36% in six months, despite a 59% gain over a year. The company reported record Q3 2026 earnings, exceeding expectations with $1.04 EPS and $280.5M revenue, up 40% YoY. Analysts noted capacity expansion and a $300M investment from Teradyne.

FormFactor Inc (FORM) reported Q3 2026 revenue up 40% YoY, exceeding expectations. Record DRAM probe card revenue and gross margins were achieved, with TRITON revenue expected to exceed $30M. The company is ramping a new facility, but faces capacity constraints and potential margin pressures. Partnerships with Teradyne and Advantest were expanded, including a $300M investment.

FormFactor (FORM) fell 12% despite record Q3 revenue of $280.5M, with flat Q4 guidance due to factory capacity limits. CEO Mike Slessor noted new factory ramp-up. Analysts expect $1B+ revenue this year. Teradyne (TER) also guided flat, while Onto Innovation (ONTO) reports next. FORM's forward P/E is 27x.

FormFactor (FORM) reported Q3 2026 earnings, highlighting the launch of its new Farmers Branch factory and partnerships with Teradyne and Advantest. The company saw 10% sequential growth in Foundry and Logic, driven by GPU and hyperscaler custom ASIC demand. DRAM probe card revenue remained stable, with a shift towards DDR5. Systems segment grew 20% sequentially, led by TRITON system demand for co-packaged optics. FormFactor expects to exceed $1 billion in revenue for 2026.

FormFactor (FORM) reported Q3 earnings, with non-GAAP gross margin between 52.5% and 53%, up from prior guidance. Foundry & Logic revenue grew 10% sequentially, driven by AI-related demand. Systems segment revenue hit a record $59.5M. The company expects 2026 revenue to exceed $1B and maintains long-term targets of $1.6B revenue, 55% gross margin, and $5 EPS. Farmers Branch facility is ramping up, with $400M annualized capacity expected by year-end 2027.

FormFactor reported Q3 revenue of $280.5M, beating estimates by 3.7%, and adjusted EPS of $1.04, a 20.5% beat. Despite strong growth, shares fell 10.5%. Q4 guidance was set above estimates. Operating and free cash flow margins improved significantly.