Key Highlights

  • FORM shares were trading up 10.19% at $96.20 from a prior close of $87.30.
  • Freedom Capital Markets upgraded the stock to Buy with a $140 target.
  • Third-quarter Revenue was a record $280.5 million, up 38%.

FormFactor (NASDAQ:FORM) was trading up 10.19% at $96.20 in today's regular session, a gain of $8.90 from the prior close of $87.30, as semiconductor stocks rebound from a steep October selloff. Freedom Capital Markets upgraded the stock to Buy with a $140 target, citing improved risk-reward after record third-quarter results. The shares are well above Monday's close and below the pre-earnings level of about $112.

FormFactor, founded in 1993 and based in Livermore, California, provides semiconductor test and measurement technologies across the chip life cycle. It reports Probe Cards, which Supply advanced probe cards for SoC, DRAM and HBM, NAND and NOR flash, logic, RF and photonics devices, and Systems, which covers probe stations, analytical probes, thermal subsystems, metrology and cryogenic instruments. It has about 2,200 employees.

Third-Quarter Results and the Fourth-Quarter Outlook

Revenue was a record $280.5 million, up 9% sequentially and up 38% year over year, against an estimate of $270.5 million. Non-GAAP gross Margin was 56.5% and non-GAAP EPS was $1.04 against $0.86 expected. About 380 basis points of gross margin came from non-recurring Tariff refunds and quantum subcomponent costs, which puts baseline gross margin near 53%.

Fourth-quarter guidance is revenue of $285 million plus or minus $10 million, non-GAAP gross margin of 54% plus or minus 150 basis points, non-GAAP opex of $69 million plus or minus $2 million and non-GAAP EPS of $0.95 plus or minus $0.09. The midpoint puts 2026 revenue above $1 billion, on the path to a target model of $1.6 billion in revenue, 55% gross margin and $5 EPS.

Farmers Branch, TRITON Photonics and Teradyne

The Farmers Branch factory is the top 2027 priority. Assembly and test are qualified and the first production unit has shipped, with capability of about $400 million of annual probe card revenue expected by the end of 2027. Cash capital spending is now $100 million to $110 million for 2026, and about $5 million of startup costs move from opex to cost of revenue in the fourth quarter.

Systems revenue was a record $59.5 million, up 23% sequentially, on Triton photonics Demand for co-packaged optics. Triton revenue is now expected to exceed $30 million in 2026, against an initial range of $10 million to $20 million. Teradyne (NASDAQ:TER) announced a $300 million Investment in FormFactor and an expanded partnership. Cash and investments were $399 million and free Cash Flow was $64.8 million. Aehr Test Systems (NASDAQ:AEHR) also rose today on raised guidance. The stock has a forward price-to-earnings ratio of 23.48 and a 52-week range of $47.33 to $160.27.

Farmers Branch Ramp and Fourth-Quarter Delivery Are the Next Markers

FormFactor is trading higher on an upgrade and a chip-sector rebound. The next items to follow are the Farmers Branch ramp toward $400 million of annual capability, fourth-quarter results against the $285 million guide and Triton photonics revenue above $30 million in 2026.