FormFactor Tops Q3 Guidance with Record $280.5M Revenue; Q4 Outlook Points to $285M

summarizeSummary

FormFactor beat the high end of Q3 guidance, posting record revenue of $280.5M, a 54.7% GAAP gross margin and $0.93 GAAP EPS. Q4 is guided to $285M +/- $10M as the company brings a new factory online to add capacity.

check_boxKey Events · Earnings and Guidance · FORM

• Q3 Revenue Record of $280.5M

  Revenue rose 8.6% from $258.2M in Q2 2026 and 38.4% from $202.7M a year earlier, exceeding the high end of the outlook range.

• Margins Expand Sharply

  GAAP gross margin reached 54.7%, up from 50.7% in Q2 and 39.8% a year ago; non-GAAP gross margin was 56.5%. GAAP operating income was $81.6M against $18.0M in the prior-year quarter.

• EPS Beats Guidance

  GAAP diluted EPS was $0.93 and non-GAAP diluted EPS was $1.04, both above the high end of the outlook range; GAAP net income was $73.8M.

• Q4 Outlook of $285M

  Guidance calls for revenue of $285M +/- $10M, GAAP gross margin of 52.3% +/- 1.5%, and non-GAAP EPS of $0.95 +/- $0.09.

auto_awesomeAnalysis · FORM · Manufacturing

The operating leverage is the story here: FormFactor posted a fourth straight quarterly revenue record and beat the high end of its own guidance on revenue, gross margin and EPS. Revenue of $280.5M rose 8.6% sequentially and 38.4% year-over-year, while GAAP gross margin climbed to 54.7% from 50.7% last quarter and 39.8% a year ago. Operating income reached $81.6M versus $18.0M a year earlier. The Q4 guide of $285M +/- $10M implies only about 1.6% sequential growth, and management flagged that productivity gains from the existing manufacturing footprint are moderating as it nears capacity limits; the new Farmers Branch factory is the swing factor for 2027 growth. Cash generation remains strong, with $104.3M of operating cash flow and $64.8M of free cash flow in the quarter.