FormFactor Q4 revenue beats estimates

Overview

• Semiconductor test tech firm's Q4 revenue rose 13.6% yr/yr, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company had acquired Keystone Photonics to enhance optics testing capabilities

Outlook

• FormFactor expects Q1'26 revenue of $225 mln +/- $5 mln

• Company anticipates Q1'26 non-GAAP gross margin of 45% +/- 1.5%

• FormFactor sees strong demand in advanced packaging and high-performance compute markets

Result Drivers

• DRAM GROWTH - Record DRAM revenue driven by increased applications in DDR4 and DDR5

• GROSS MARGIN IMPROVEMENT - 540 basis points of non-GAAP gross margin improvement in H2 2025

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for FormFactor Inc is $64.00, about 14.3% below its February 3 closing price of $74.69

• The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release: ID:nGNX3RKFdZ

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