Want to see FORM full AI Analyst Report?
EarningsQ2 2026 Earnings Report
FORM Q2 2026 EPS Results
Actual EPS$0.82
Consensus EPS$0.61
Beat/MissBeat by +$0.21
One Year Ago EPS$0.27
FORM Q2 2026 Revenue Results
Actual Revenue$258.24M
Expected Revenue$240.00M
Beat/MissBeat by +$18.24M
YoY Revenue Growth+31.89%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
FORM Upcoming Earnings
Formfactor's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
FORM Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive operational and financial momentum: record revenue, strong cash generation, notable margin expansion, systems/CPO acceleration, and clear capacity plans (Farmers Branch) support the company’s long‑term targets. Key near-term risks are mix shifts (DRAM HBM→DDR), parts of the margin improvement being non‑recurring (tariff refunds, reclaim), capacity/ramp timing and competitive pressures in select subsegments. On balance the material, recurring improvements in revenue, margins, EPS, cash flow and strategic positioning outweigh the highlighted one‑time items and execution/timing risks.Company Guidance
Record Quarterly Financials
Q2 revenue of $258.2M set an all-time record, up $32.1M or ~14% sequentially and $18.2M above the midpoint of guidance. GAAP net income was $56.2M ($0.71/share) and non-GAAP net income was $65M ($0.82/share).
Material Gross Margin Expansion
Non-GAAP gross margin reached 53.3% in Q2 (GAAP 50.7%), a 34 basis-point sequential increase and nearly +1,500 basis points improvement over the past four quarters; management identifies a sustainable baseline near ~51% at current volumes.
Strong EPS and Operating Leverage
Non-GAAP EPS rose to $0.82 in Q2, nearly +50% sequentially from $0.56 in Q1 and more than tripled versus Q2 last year. Non-GAAP operating expenses were $65.7M (25.4% of revenue), improving ~200 basis points sequentially demonstrating operating leverage.
Robust Cash Generation and Balance Sheet
Free cash flow was $52.6M in Q2 versus $30.7M in Q1. Cash and investments grew by $40.8M to $349M at quarter end.
Systems Segment Recovery and CPO Acceleration
Systems revenue hit a record $48.5M in Q2, up $20.6M or +74% sequentially. Co-packaged optics (CPO) sales have accelerated — management now expects to exceed the prior $10–$20M outlook and to top $20M for 2026 (crossing $20M by end of Q3).
DRAM/HBM Strength and Product Differentiation
DRAM probe card revenue set a record; HBM composed ~2/3 of DRAM revenue, driven by adoption of SmartMatrix full-wafer contactor tech for high-speed HBM4 testing and resulting share gains as the industry moves toward HBM4/HBM5.
Foundry & Logic Momentum
Foundry and logic probe card demand increased significantly from Q1 driven by data-center CPU probe cards, networking, hyperscaler ASICs and steady PC/mobile — management expects continued growth in this market in Q3.
Operational Improvements and Capacity Plan
About one-third of gross margin improvement is attributed to durable baseline cost reductions; yield and cycle-time improvements boosted output. Farmers Branch fab on track to start ramping end of 2026, expected to increase capacity and be accretive to gross margin when at target capacity (~beginning 2028).
Incentives and Funded Expansion
Management expects to largely self-fund Farmers Branch from operations and received a $24.2M grant from the Texas Semiconductor Innovation Fund to offset capital expenditures; 2026 cash CapEx guidance for Farmers Branch and capacity additions is $140–$170M.
Ambitious Long-Term Targets
Company surpassed a $1B annual revenue run rate, exceeded 50% gross margin, and reiterated its target model to double revenues (~$1.6B), achieve ~55% non-GAAP gross margin, and more than double non-GAAP EPS by 2030.
FORM Earnings History
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