FormFactor (FORM) Q3 2026 Earnings Call: Record $280.5M Revenue
Source Tradingkey
Key Takeaways
- FormFactor reported a fourth consecutive quarter of record revenue at $280.5 million, up 9% sequentially and nearly 40% year over year, exceeding the high end of its $260 million to $280 million outlook.
- Non-GAAP gross margin reached 56.5%, up 320 basis points from Q2. About $10.5 million, or 380 basis points, came primarily from tariff refunds and favorable Quantum subcomponent costs that management does not expect to recur.
- Non-GAAP diluted EPS increased to $1.04 from $0.82 in Q2. Approximately $0.09 of Q3 EPS was attributable to tariff refunds.
- Foundry and logic revenue grew 10% sequentially, supported by CPUs and broader high-performance computing demand. Systems revenue rose 23% to a record $59.5 million on higher Triton photonic system sales.
- Management guided Q4 revenue to $285 million, plus or minus $10 million, with non-GAAP gross margin of 54%, plus or minus 150 basis points, and non-GAAP diluted EPS of $0.95, plus or minus $0.09.
- The Farmers Branch facility shipped its first production unit and is expected to reach approximately $400 million of annual probe card production capability by the end of 2027. Management emphasized that this represents capacity, not guaranteed revenue.
Key Financial Data
| Metric | Q3 2026 | Change or context |
|---|---|---|
| Revenue | $280.5 million | Up 9% sequentially and nearly 40% year over year |
| Systems revenue | $59.5 million | Record level; up $11 million, or 23%, from Q2 |
| GAAP gross margin | 54.7% | Up from 50.7% in Q2 |
| Non-GAAP gross margin | 56.5% | Up 320 basis points sequentially |
| GAAP operating expenses | $71.8 million | Down sequentially and lower as a percentage of revenue |
| Non-GAAP operating expenses | $64.4 million | 23% of revenue, versus $65.7 million and 25.4% in Q2 |
| GAAP net income | $73.8 million | $0.93 per diluted share, versus $56.2 million and $0.71 in Q2 |
| Non-GAAP net income | $82.3 million | $1.04 per diluted share, versus $65.0 million and $0.82 in Q2 |
| Operating cash flow | $104.3 million | Up $42.5 million from Q2 |
| Free cash flow | $64.8 million | Up from $52.6 million in Q2 |
| Cash and investments | $399 million | Up $50 million during the quarter |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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