FormFactor (FORM) Q3 2026 earnings summary

Executive summary

• Q3 revenue set a fourth consecutive quarterly record at $280.5M, up 8.6% QoQ and 38.4% YoY; revenue, gross margin and EPS exceeded the high end of outlook.

• Broad demand across high-performance computing and advanced packaging supported growth; existing manufacturing capacity is nearing its limits.

• Q4 outlook midpoint implies FY2026 revenue above $1B; Farmers Branch capacity expansion is central to serving expected 2027 demand.

Financial highlights

• Q3 revenue was $280.5M, up 38.4% YoY and 8.6% QoQ; GAAP operating income was $81.6M versus $18.0M a year earlier.

• GAAP net income was $73.8M, or $0.93 diluted EPS; non-GAAP net income was $82.3M, or $1.04 diluted EPS, versus $15.7M and $0.20 GAAP EPS YoY.

• GAAP gross margin was 54.7% versus 39.8% YoY; non-GAAP gross margin was 56.5% versus 41.0%.

• Q3 included $8.6M of IEEPA tariff refunds, lifting gross margin by 3.1 percentage points; favorable quantum sub-component costs also benefited non-GAAP margin.

• Nine-month revenue was $764.9M, up 34.2% YoY; net income was $150.4M versus $31.1M.

Outlook and guidance

• Q4 revenue outlook is $285M ±$10M; non-GAAP gross margin is 54.0% ±1.5%, operating expenses ~$69M ±$2M, and non-GAAP diluted EPS $0.95 ±$0.09.

• Q4 GAAP gross margin outlook is 52.3% ±1.5% and GAAP diluted EPS is $0.84 ±$0.09; outlook assumes consistent foreign exchange rates.

• Non-GAAP gross margin baseline is ~53% at Q3 volumes; 2027 margins are expected near that level as volume and efficiency gains offset factory-ramp inefficiencies.

• Farmers Branch is expected to reach ~$400M annual probe-card production capability exiting 2027; capacity is expected to ramp roughly linearly and is not a revenue forecast.

• 2026 TRITON revenue is expected to exceed $30M versus initial guidance of $10M-$20M, with demand growth expected to continue in 2027.