FormFactor (NASDAQ:FORM) Announces Earnings Results

FormFactor (NASDAQ:FORM) announced its quarterly earnings data on Wednesday. The semiconductor company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.11, FiscalAI reports. FormFactor had a return on equity of 5.10% and a net margin of 5.38%.The firm had revenue of $215.16 million during the quarter, compared to the consensus estimate of $210.29 million. During the same quarter in the previous year, the company posted $0.27 earnings per share. The business’s revenue was up 13.6% on a year-over-year basis. FormFactor updated its Q1 2026 guidance to 0.410-0.490 EPS.

Here are the key takeaways from FormFactor’s conference call:

• Q4 results beat guidance with $215.2M revenue, non‑GAAP gross margin of 43.9% and non‑GAAP EPS of $0.46, and management guides Q1 to $225M ±$5M and ~45% non‑GAAP gross margin.
• Management says strong, broadening end‑market demand — driven by the HBM4 ramp, DRAM strength, data‑center/foundry logic (network switches), GPUs and custom ASICs — is creating higher test intensity and share‑gain opportunities, supported by its SmartMatrix probe technology.
• Operational actions (workforce reallocation, yield and cycle‑time improvements) produced a cumulative 540 bps gross‑margin improvement through Q4 and are expected to add another ~110 bps in Q1, accelerating progress toward the company’s target financial model.
• Tariffs remain a ~200‑basis‑point drag on gross margins; management is pursuing tariff drawback recoveries but warned that any cash recovery could take several quarters to realize.
• Management is investing to expand capacity with the Farmers Branch site (expected capex of $140–$170M in 2026 and $20–$25M of pre‑production operating costs that year), and is temporarily prioritizing that spend over share repurchases.

FormFactor Stock Performance

FormFactor stock traded up $12.11 during midday trading on Thursday, hitting $83.68. The stock had a trading volume of 412,353 shares, compared to its average volume of 1,479,598. The company has a market capitalization of $6.49 billion, a PE ratio of 160.14 and a beta of 1.11. FormFactor has a 52-week low of $22.58 and a 52-week high of $86.75. The firm’s fifty day moving average is $64.12 and its two-hundred day moving average is $47.20. The company has a current ratio of 4.30, a quick ratio of 3.46 and a debt-to-equity ratio of 0.01.

Key Headlines Impacting FormFactor

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: Q4 results beat expectations — GAAP EPS $0.46 vs. ~$0.35 est. and revenue $215.2M vs. ~$210.3M; company also reported record FY25 revenue, with Q4 results exceeding the high end of its outlook. FormFactor, Inc. Reports 2025 Fourth Quarter Results
• Positive Sentiment: Stronger-than-expected Q1 guidance: EPS $0.410–0.490 (well above consensus) and revenue guidance ~ $220–230M (vs. ~$203M consensus); management flagged accelerating HBM and data‑center demand and gross‑margin expansion. FormFactor targets $225M Q1 revenue with continued gross margin expansion as HBM and data center demand accelerate
• Positive Sentiment: Market coverage and analyst enthusiasm: multiple headlines highlight the beat and bullish outlook; at least one shop (Cantor Fitzgerald) has a positive forecast for price appreciation. Cantor Fitzgerald Forecasts Strong Price Appreciation for FormFactor (NASDAQ:FORM) Stock
• Neutral Sentiment: Investors can review the earnings presentation, call transcript and slide deck for customer mix and margin details — useful for confirming whether HBM/data‑center traction will sustain. FormFactor, Inc. 2025 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Additional reporter summaries and earnings recaps (Zacks, Investing.com, MSN) echo the beats and guidance; they document the move but add little new fundamental information. FormFactor shares soar as Q4 earnings, revenue top estimates
• Negative Sentiment: Valuation and margin context: shares now trade at a high trailing PE (~149) and the company’s ROE/net margin remain modest; sustained outperformance depends on continued HBM/data‑center demand and margin improvement — factors that can be cyclical.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on FORM. Loop Capital set a $64.00 price target on shares of FormFactor in a research report on Tuesday, January 27th. TD Cowen restated a “hold” rating on shares of FormFactor in a report on Thursday. Zacks Research raised FormFactor from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 13th. B. Riley reiterated a “buy” rating on shares of FormFactor in a report on Thursday. Finally, Freedom Capital upgraded FormFactor to a “hold” rating in a research note on Tuesday, January 27th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $74.20.

Insider Activity

In other news, Director Dennis Thomas St sold 2,000 shares of the company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $49.85, for a total value of $99,700.00. Following the completion of the transaction, the director owned 38,957 shares of the company’s stock, valued at $1,942,006.45. This represents a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Mike Slessor sold 13,088 shares of the stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $76.81, for a total value of $1,005,289.28. Following the sale, the chief executive officer owned 472,907 shares of the company’s stock, valued at $36,323,986.67. This represents a 2.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 73,466 shares of company stock worth $4,683,377 in the last three months. Company insiders own 0.90% of the company’s stock.

Hedge Funds Weigh In On FormFactor

Several institutional investors have recently bought and sold shares of FORM. Mercer Global Advisors Inc. ADV purchased a new position in shares of FormFactor in the third quarter valued at $268,000. Gabelli Funds LLC increased its holdings in shares of FormFactor by 25.8% in the 3rd quarter. Gabelli Funds LLC now owns 14,629 shares of the semiconductor company’s stock worth $533,000 after buying an additional 3,000 shares during the last quarter. Tower Research Capital LLC TRC raised its position in shares of FormFactor by 113.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 12,340 shares of the semiconductor company’s stock valued at $425,000 after buying an additional 6,552 shares in the last quarter. Tidal Investments LLC bought a new stake in FormFactor during the second quarter worth approximately $555,000. Finally, Quantinno Capital Management LP lifted its stake in shares of FormFactor by 78.8% in the 2nd quarter. Quantinno Capital Management LP now owns 13,985 shares of the semiconductor company’s stock valued at $481,000 after purchasing an additional 6,165 shares during the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

About FormFactor

FormFactor, Inc (NASDAQ:FORM) is a leading provider of advanced test and measurement solutions for the semiconductor industry. The company specializes in the design, development and manufacture of high-performance wafer-level and package-level test interfaces used in wafer sort, characterization, reliability and failure analysis applications. By leveraging precision microelectromechanical systems (MEMS) and photolithographic processes, FormFactor delivers probe cards, analytical probes and test sockets that enable device makers to validate next-generation integrated circuits across logic, memory, RF, analog and power applications.

FormFactor’s product portfolio includes custom probe cards for wafer probers, TEM-based analytical probes for material and device characterization, and socket solutions for burn-in and final test of packaged devices.