Formfactor (FMF) Q3 2026 Earnings Report
DE:FMF Q3 2026 EPS Results
- Actual EPS
- EUR 0.93
- Consensus EPS
- EUR 0.77
- Beat/Miss
- Beat by +EUR 0.16
- One Year Ago EPS
- EUR 0.30
DE:FMF Q3 2026 Revenue Results
- Actual Revenue
- EUR 251.59M
- Expected Revenue
- EUR 242.59M
- Beat/Miss
- Beat by +EUR 9.00M
- YoY Revenue Growth
- +38.42%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
DE:FMF Upcoming Earnings
Formfactor's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:FMF Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. FormFactor reported record revenue for the fourth consecutive quarter, close to 40% year-over-year revenue growth, improved baseline gross margins, strong cash flow, expanding Foundry and Logic demand, accelerating TRITON and photonics growth, and meaningful progress at the Farmers Branch facility. The principal challenges were that existing capacity is becoming constrained, Q3 HBM revenue declined due to mix shifts, and a portion of the exceptional gross-margin performance came from benefits that are not expected to recur. The highlights significantly outweigh the lowlights.
Company Guidance
Fourth quarter guidance is revenue of approximately $285 million, plus or minus $10 million; at the midpoint, non-GAAP gross margin of 54%, plus or minus 150 basis points; non-GAAP operating expense of approximately $69 million, plus or minus $2 million; a non-GAAP effective tax rate within the range of 15% to 19%; and non-GAAP earnings per fully diluted share of $0.95, plus or minus $0.09. FormFactor expects TRITON revenue of upwards of $30 million in 2026, to exceed $1 billion of revenue in 2026, and 2026 Farmers Branch cash capital expenditures of between $100 million and $110 million, with $25 million to $30 million of Farmers Branch preproduction expense in 2026. Farmers Branch is expected to have the capability to produce about $400 million in annual probe card revenue exiting 2027, with that capability expected to ramp over the course of 2027, while 2027 gross margins are expected to continue at levels similar to the current baseline of around 53%; the company’s target model is $1.6 billion in revenues at 55% gross margins and $5 of EPS.
- Record Q3 Revenue, Gross Margin and EPSFormFactor grew revenue, gross margin and earnings per share in Q3, with each metric exceeding the high end of its outlook range. Revenue was $280.5 million, up $22.3 million or 9% sequentially and close to 40% higher year over year. Non-GAAP gross margin was 56.5% and non-GAAP earnings per fully diluted share were $1.04.
- Fourth Consecutive Quarter of Record RevenueQ3 marked the company's fourth consecutive quarter of record revenue. Management said the midpoint of its Q4 outlook puts FormFactor on track to exceed $1 billion of revenue in 2026 for the first time.
- Improved Operating LeverageNon-GAAP operating expenses declined to 23% of revenue from 25.4% in Q2, an approximately 250-basis-point sequential improvement, while revenue increased 9%. Management attributed the operating leverage to higher output, improved cycle times, yields and operating efficiency.
- Higher Baseline Gross MarginExcluding approximately $10.5 million, or about 380 basis points, of primarily nonrecurring tariff refunds and favorable subcomponent costs in Quantum, Q3 non-GAAP gross margin would have been between 52.5% and 53%. Management now views around 53% as the gross-margin baseline at Q3 volumes, up from the previously discussed 51% to 51.5%.
- Strong Cash Flow and Balance SheetQ3 free cash flow was $64.8 million, up from $52.6 million in Q2. Cash flow from operations was $104.3 million, up $42.5 million sequentially, and total cash and investments increased $50 million to $399 million.
- Foundry and Logic GrowthFoundry and Logic revenue increased 10% sequentially in Q3 on broad-based strength across multiple applications, and management expects continued growth in Q4. Key growth areas include PCs, mobile, data-center CPUs, networking, GPUs and hyperscaler custom ASICs, with CPU demand for presumed Agentic AI use cases identified as a key current driver.
- GPU and Custom ASIC PositioningDuring Q3, FormFactor shipped probe cards for one single GPU design to the world's leading foundry in multimillion-dollar volumes. Management said the company is well positioned to meaningfully grow share in this area in 2027. FormFactor has also qualified and shipped multiple units for custom ASICs, with additional volume dependent on available production capacity.
- DRAM Revenue and Margin ResilienceQ3 DRAM probe-card revenue was essentially unchanged from the record level in Q2, while the mix shifted from HBM toward DDR5 as customers moved wafer starts toward DDR designs to capture the profit opportunity from significant DDR market price increases. Despite the HBM-light and DDR5-heavy mix, FormFactor delivered record or near-record company gross-margin performance, supported by DRAM manufacturing cost-reduction programs.
- Continued HBM Growth OutlookManagement said HBM remains a major business driver through 2026 and into 2027. Despite Q3 HBM revenue declining due primarily to customer mix shifts, the HBM4E and HBM5 design funnel and customer forecasts support continued strong growth. Management said it is not seeing any significant headwinds from HBM de-specification and highlighted differentiation in final stack test, high-speed test performance and SmartMatrix DRAM architecture.
- Record Systems Segment PerformanceSystems delivered a record quarter, with revenue increasing 20% sequentially on accelerating demand for the TRITON system for co-packaged optics applications. Systems revenue reached a record $59.5 million, up $11 million or 23% from Q2, and Systems gross margin increased to 61%.
- TRITON Revenue Outlook IncreasedFormFactor raised its expected 2026 TRITON revenue to upwards of $30 million from its initial outlook of between $10 million and $20 million. TRITON revenue was $0 in 2025, and management expects continued growth in 2027 without capacity being a constraint.
- Broader Photonics OpportunitiesIn addition to co-packaged optics, FormFactor is serving near-package optics and pluggable-device applications. Management said its optical-probing strategy and leadership in Test Insertion One support known-good-die testing for photonic integrated circuits across multiple photonics architectures.
- Keystone Photonics IntegrationFollowing the acquisition of Keystone Photonics a year ago, FormFactor is more tightly integrating the Keystone team and technologies with an exclusive focus on enhancing FormFactor's photonics-probing solutions.
- Farmers Branch Facility Operational MilestonesFormFactor qualified the assembly and test portion of its new nearly 300,000-square-foot Farmers Branch facility and shipped its first production unit to a leading customer. Management said the ramp to initial target capacity remains on track, if not slightly ahead of the original schedule.
- Farmers Branch Capacity ExpansionFarmers Branch is expected to ramp approximately linearly during 2027 and have the capability to produce about $400 million in annual probe-card revenue exiting 2027. The facility is designed to add capacity in a modular fashion, and management expects the initial ramp to be accretive to current gross-margin levels after completion.
- Lower 2026 Farmers Branch Cash CapEx EstimateExpected 2026 cash capital expenditures for Farmers Branch were reduced to between $100 million and $110 million from the prior estimate of $140 million to $170 million, primarily due to optimized spending timing and favorable payment terms. Management said this reflects a change in cash timing rather than a change in project scope or ramp velocity.
- Teradyne Partnership and InvestmentFormFactor expanded its partnership with Teradyne and announced a $300 million investment from Teradyne. Together with the existing Advantest partnership, the collaborations are intended to accelerate development, validation and high-volume production of next-generation semiconductor applications while reinforcing probe-card and ATE interoperability.
- Q4 OutlookFormFactor expects Q4 revenue of approximately $285 million, plus or minus $10 million; non-GAAP gross margin of 54%, plus or minus 150 basis points; non-GAAP operating expense of approximately $69 million, plus or minus $2 million; a non-GAAP effective tax rate of 15% to 19%; and non-GAAP earnings per fully diluted share of $0.95, plus or minus $0.09.
- Progress Toward Long-Term Target ModelManagement reiterated its target model of $1.6 billion in revenue, 55% gross margins and $5 of non-GAAP earnings per share, stating that the operating model is substantially stronger than it was 1.5 years ago.
DE:FMF Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 10, 2027 | 2026 (Q4) | 0.84- | 0.41 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.770.93 | 0.3 | 215.15% (+0.64) | |
| Jul 29, 2026 | 2026 (Q2) | 0.550.74 | 0.24 | 203.70% (+0.49) | |
| Apr 29, 2026 | 2026 (Q1) | 0.390.50 | 0.21 | 143.48% (+0.30) | |
| Feb 04, 2026 | 2025 (Q4) | 0.320.41 | 0.24 | 70.37% (+0.17) | |
| Oct 29, 2025 | 2025 (Q3) | 0.220.30 | 0.31 | -5.71% (-0.02) | |
| Jul 30, 2025 | 2025 (Q2) | 0.270.24 | 0.31 | -22.86% (-0.07) | |
| Apr 30, 2025 | 2025 (Q1) | 0.170.21 | 0.16 | 27.78% (+0.04) | |
| Feb 05, 2025 | 2024 (Q4) | 0.260.24 | 0.18 | 35.00% (+0.06) | |
| Oct 30, 2024 | 2024 (Q3) | 0.280.31 | 0.2 | 59.09% (+0.12) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
