Formfactor (FMF) AI Stock Analysis

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Formfactor

(XETRA:FMF)

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Positive Factors

Sustained revenue growth and semiconductor demandRepeated quarterly records and nearly 40% year-over-year growth indicate broadening demand rather than a single isolated order. Strength across foundry, logic, GPUs, custom ASICs and memory supports continued customer engagement and creates a stronger base for expansion over the next several quarters.

Negative Factors

Revenue, margins and cash flow remain cyclicalThe recent earnings recovery has not eliminated FormFactor's exposure to semiconductor production and technology cycles. Historical revenue, margin and free-cash-flow swings show that weaker customer investment or changing production patterns could reduce earnings quality and limit the durability of the current operating run-rate.

Formfactor (FMF) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 7.24B
Dividend Yield: ―
Average Volume (3M): 91
Price to Earnings (P/E): 39.4
Beta (1Y): 0.92
Revenue Growth: 22.93%
EPS Growth: 305.49%
Country: Germany
Employees: 2,153
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Formfactor Business Overview & Revenue Model

Company Description

FormFactor, Inc., established in Livermore, California in 1993, specializes in the design, manufacturing, and global distribution of advanced test and measurement solutions for the semiconductor industry. The company primarily caters to semiconductor...

Formfactor Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-19.04%|Next Earnings Date:Feb 10, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Record Q3 Revenue, Gross Margin and EPS

FormFactor 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.

Negative Updates

Existing Manufacturing Footprint Nearing Capacity Limits

Management said the company is reaching the limits of its ability to extract more output from its existing manufacturing footprint. It is operating near those limits, and the Q4 incremental guidance increase is somewhat lower than the increase achieved in the prior quarter. Farmers Branch is intended to provide additional capacity.

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.

Formfactor Risk Analysis

Formfactor disclosed 37 risk factors in its most recent earnings report. Formfactor reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

0 New Risks

Formfactor Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:FMF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TER	76Outperform	$41.18B	28.45	42.04%	0.20%	74.93%	218.54%
KLIC	71Outperform	$3.79B	31.25	13.55%	1.19%	44.44%	2283.94%
CAMT	64Neutral	$4.93B	35.32	19.34%	―	12.18%	173.28%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEHR	57Neutral	$2.00B	956.04	1.20%	―	-15.21%	-81.50%
COHU	57Neutral	$2.13B	-90.17	-2.90%	―	34.00%	69.09%

* Technology Sector Average

Performance Comparison

DE:FMF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:FMF	Formfactor	79.24	37.24	88.67%
AEHR	Aehr Test	56.98	36.91	183.91%
CAMT	Camtek	101.73	5.85	6.10%
COHU	Cohu Inc	43.59	22.21	103.88%
KLIC	Kulicke & Soffa Industries, Inc.	69.07	33.85	96.13%
TER	Teradyne	249.55	82.43	49.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Formfactor AI Stock Analysis