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Formfactor
(NASDAQ:FORM)
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Rating:77Outperform
Price Target:
$127.00
▲(17.90% Upside)
Action:Reiterated
Date:10/13/26
FORM scores well on fundamentals and outlook: a very strong balance sheet, improving TTM profitability, and a positive earnings-call read-through on revenue/margin momentum are the main drivers. Technicals are supportive but not strongly bullish, while the biggest offset is valuation—P/E is very high and there is no dividend yield support—alongside ongoing cyclicality and some non-recurring margin benefits.
Positive Factors
Conservative balance sheet
Very low leverage and a large equity cushion strengthen FormFactor’s ability to withstand semiconductor downturns while continuing to invest in capacity and technology. Reduced debt also limits financing pressure, preserving strategic flexibility as demand cycles and expansion requirements change.
Negative Factors
Semiconductor cyclicality
FormFactor’s results remain tied to semiconductor production conditions, customer mix, and technology-transition timing. Uneven historical growth and changing peak margins mean revenue and profitability can weaken when wafer starts, capital spending, or device ramps slow, making earnings less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a large equity cushion strengthen FormFactor’s ability to withstand semiconductor downturns while continuing to invest in capacity and technology. Reduced debt also limits financing pressure, preserving strategic flexibility as demand cycles and expansion requirements change.
Read all positive factors
Formfactor Key Performance Indicators (KPIs)
Any
Revenue by Geography
Maps revenue across countries and regions to identify customer concentration and supply-chain risk. For a supplier to semiconductor manufacturers like FormFactor, strong revenue in key fabrication hubs indicates dependence on a few large customers and makes top-line performance sensitive to their investment plans.
Maps revenue across countries and regions to identify customer concentration and supply-chain risk. For a supplier to semiconductor manufacturers like FormFactor, strong revenue in key fabrication hubs indicates dependence on a few large customers and makes top-line performance sensitive to their investment plans.
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The Fly
The FlyFormfactor (FORM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.41B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)75.8
Beta (1Y)2.17
Revenue Growth18.01%
EPS Growth161.14%
CountryUS
Employees2,153
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.48
Shares Outstanding78,120,730
10 Day Avg. Volume1,383,740
30 Day Avg. Volume1,771,388
Financial Highlights & Ratios
PEG Ratio-3.73
Price to Book (P/B)4.34
Price to Sales (P/S)5.72
P/FCF Ratio382.52
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue11.18
Enterprise Value/Gross Profit24.51
Enterprise Value/Ebitda60.79
Forecast
1Y Price Target
$152.14Price Target Upside41.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)3.05
Revenue Forecast (FY)$1.03B
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 semiconduc...
How the Company Makes Money
FormFactor makes money primarily by selling semiconductor test interconnect products—especially probe cards—which are consumable, application-specific hardware required to electrically contact and test semiconductor wafers during manufacturing. Re...
Formfactor Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
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.Positive Updates
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).
Negative Updates
Portion of Margin Gains Are Non‑Recurring
Management disclosed that roughly one-third of the recent gross margin expansion resulted from non-recurring items (IEPA tariff refunds and precious metal reclaim). Q3 margin outlook also includes $7–$9M of tariff refunds (~300 basis points) that will not recur.
Read all updates
Q2-2026 Updates
Positive
Negative
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).
Read all positive updates
Company Guidance
FormFactor guided Q3 revenue of $270 million +/- $10 million, with non‑GAAP gross margin of 54% +/- 150 basis points and non‑GAAP EPS of $0.86 +/- $0.09; expected non‑GAAP operating expenses are $70 million +/- $2 million (including about $7 million of Farmers Branch preproduction ramp costs) and the non‑GAAP tax rate is forecast at 15–19%. Management noted $7–$9 million of IEPA tariff refunds (roughly a 300‑bp boost to Q3 gross margin), reiterated that baseline non‑GAAP gross margin is ~51% at current volumes, and said Farmers Branch is on track to come online at the end of 2026 and ramp through 2027 (initial capacity target by early 2028) with 2026 cash CapEx and capacity additions of $140–$170 million and total 2026 preproduction ramp costs of $25–$30 million (≈$12M incurred to date, ≈$7M expected in Q3); for context Q2 results were $258.2M revenue, 53.3% non‑GAAP gross margin, $0.82 non‑GAAP EPS, $52.6M free cash flow and $349M cash & investments.Formfactor Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 902.23M | 784.99M | 763.60M | 663.10M | 747.94M | 769.67M |
| Gross Profit | 411.77M | 307.21M | 307.92M | 258.58M | 296.01M | 322.77M |
| EBITDA | 166.01M | 114.82M | 112.73M | 127.14M | 96.49M | 143.62M |
| Net Income | 115.47M | 54.36M | 69.61M | 82.39M | 50.74M | 83.92M |
Balance Sheet | ||||||
| Total Assets | 1.34B | 1.22B | 1.15B | 1.11B | 1.01B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 345.64M | 276.24M | 360.02M | 328.32M | 238.14M | 276.06M |
| Total Debt | 29.91M | 44.85M | 39.23M | 48.15M | 50.37M | 63.27M |
| Total Liabilities | 231.12M | 189.04M | 198.45M | 197.99M | 199.94M | 204.74M |
| Stockholders Equity | 1.11B | 1.04B | 947.77M | 908.80M | 808.28M | 815.78M |
Cash Flow | ||||||
| Free Cash Flow | 136.12M | 11.74M | 79.10M | 8.57M | 66.53M | 72.87M |
| Operating Cash Flow | 179.73M | 115.40M | 117.53M | 64.60M | 131.79M | 139.36M |
| Investing Cash Flow | -116.97M | -191.47M | -33.48M | 29.05M | -75.70M | -124.74M |
| Financing Cash Flow | -17.18M | -13.63M | -64.61M | -22.71M | -95.93M | -47.20M |
Formfactor Technical Analysis
Negative
107.72
Price Trends
119.34
Negative
120.67
Negative
113.13
Negative
Market Momentum
-4.77
Positive
32.10
Neutral
10.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORM, the sentiment is Negative. The current price of 107.72 is below the 20-day moving average (MA) of 128.56, below the 50-day MA of 119.34, and below the 200-day MA of 113.13, indicating a bearish trend. The MACD of -4.77 indicates Positive momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 10.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FORM.
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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Formfactor Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.41B | 75.80 | 10.96% | ― | 18.01% | 161.14% | |
72 Outperform | $52.62B | 47.13 | 38.04% | 0.15% | 57.91% | 153.54% | |
70 Outperform | $4.26B | 36.85 | 13.55% | 1.01% | 44.44% | 2283.94% | |
66 Neutral | $6.21B | 166.36 | 5.82% | 1.62% | 7.94% | -72.56% | |
63 Neutral | $2.62B | -66.53 | -4.91% | 1.11% | 32.66% | 55.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $2.09B | -277.74 | -4.66% | ― | -15.21% | -81.50% |
* Technology Sector Average
FORM
Formfactor
95.03
52.19
121.83%
AEHR
Aehr Test Systems
55.65
30.56
121.80%
CAMT
Camtek
119.48
1.40
1.19%
COHU
Cohu
46.26
23.78
105.78%
KLIC
Kulicke & Soffa
73.40
33.71
84.92%
TER
Teradyne
308.75
163.99
113.29%
Formfactor Corporate Events
Business Operations and StrategyPrivate Placements and Financing
FormFactor Announces Strategic Equity Investment and Collaboration
Positive
Oct 13, 2026
On October 12, 2026, FormFactor and Teradyne announced a broad technology collaboration to accelerate development, validation, and high-volume production deployment of next-generation semiconductor devices. The partnership combines FormFactor̵...
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.