FormFactor Posts Record Q2 Revenue, Gross Margin, and EPS; Q3 Revenue Guidance Tops Consensus
FORM has more than doubled off its 52-week low of $26.08.
Summary
FormFactor reported record Q2 2026 results, with revenue of $258.2M, non-GAAP gross margin of 53.3%, and non-GAAP EPS of $0.82. Q3 revenue guidance of $270M exceeded consensus, driven by broad-based demand in key growth initiatives.
Key Events · Earnings and Guidance · FORM
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Record Q2 Revenue and Profitability
Revenue reached $258.2M, up 14.2% sequentially and 31.9% year-over-year. GAAP net income came in at $56.2M ($0.71 diluted EPS), compared with $20.4M in Q1 2026. On a non-GAAP basis, net income was $65.0M ($0.82 diluted EPS), versus $44.5M in the prior quarter.
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Gross Margin Expansion
GAAP gross margin climbed to 50.7%, up from 38.4% in Q1 2026. Non-GAAP gross margin hit 53.3%, compared with 49.0% in the previous quarter, reflecting a 1,500 basis point improvement over the past year.
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Strong Q3 Guidance Above Consensus
Q3 revenue guidance of $270M +/- $10M came in above the $260M consensus. Non-GAAP diluted EPS guidance of $0.86 +/- $0.09 implies continued margin strength.
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Free Cash Flow Generation
Free cash flow totaled $52.6M in Q2 2026, up from $30.7M in Q1 2026, driven by $61.8M in operating cash flow and $9.6M in capex.
Analysis · FORM · Manufacturing
FormFactor delivered a blowout quarter, setting records across revenue, gross margin, and earnings. Revenue surged 32% year-over-year to $258.2 million, while non-GAAP gross margin expanded to 53.3% — a 1,500 basis point improvement over the past year. Non-GAAP EPS of $0.82 crushed the $0.56 from last quarter. The company guided Q3 revenue to $270 million, well above the $260 million consensus, signaling sustained momentum in DRAM, Foundry & Logic, and Systems. This performance, combined with strong free cash flow of $52.6 million, reinforces FormFactor's position at the intersection of high-performance compute and advanced packaging, with particular strength in High Bandwidth Memory and Co-Packaged Optics.
At the time of this filing, FORM was trading at $96.01 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $6.5B. The 52-week trading range was $26.08 to $160.27. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.