FORM's Q4 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Fall

FormFactor FORM reported fourth-quarter 2025 non-GAAP earnings of 46 cents per share, comfortably surpassing the Zacks Consensus Estimate by 32.95%. The bottom line increased 70.4% year over year. Shares were down 4.18% at the time of writing this article. 

Revenues of $215.2 million beat the Zacks Consensus Estimate by 2.42% and increased 13.6% year over year.

FORM’s Segmental Revenue Details

Probe card revenues were $172.9 million, up 15% year over year. The increase was driven by the contribution from non-HBM DRAM applications like DDR4 and DDR5. Foundry & Logic revenues (42.8% of the total revenues) were $92.2 million, up 10.7% year over year. DRAM revenues (34.1% of the total revenues) were $73.3 million, up 15.8% year over year. Flash revenues (3.4% of the total revenues) were $7.4 million, up 100% year over year. 

Systems revenues (19.7% of the total revenues) were $42.3 million, up 7.9% year over year.
 

FormFactor, Inc. Price, Consensus and EPS Surprise

FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote

Revenues generated from Taiwan, South Korea, Malaysia, Singapore and the Rest of the World increased 26.8%, 30.9%, 2.6%, 4.7% and 2%, respectively, year over year. However, revenues from the United States, China, Japan and Europe declined 16%, 10.8%, 3.2% and 3%, respectively, year over year.

FORM’s Operating Results

In the fourth quarter of 2025, the gross margin expanded 370 basis points (bps) year over year to 43.9%.

Non-GAAP operating expenses increased 4.1% year over year to $57.5 million. As a percentage of revenues, operating expenses were down 240 bps year over year to 26.7%.

The non-GAAP operating margin improved 610 bps year over year to 17.2%.

FormFactor’s Balance Sheet & Cash Flow

As of Dec. 27, 2025, cash and cash equivalents, and marketable securities were $275.1 million compared with $266 million as of Sept. 27, 2025.

Cash generated from operating activities was $46 million in the reported quarter, up from $27 million in the previous quarter. Free cash flow was $34.7 million.

FORM Offers Optimistic Q1 Guidance

FORM expects first-quarter 2026 revenues of $225 million (+/- $5 million). The Zacks Consensus Estimate for revenues is currently pegged at $201.79 million, suggesting 17.7% growth over the figure reported in the year-ago quarter.

The company expects a non-GAAP gross margin of 45% (+/- 1.5%). 

On a non-GAAP basis, FORM expects earnings of 45 cents (+/- 4 cents) per share. The Zacks Consensus Estimate for earnings is currently pegged at 31 cents per share, suggesting 34.7% growth over the figure reported in the year-ago quarter.

FORM’s Zacks Rank & Other Stocks to Consider

FormFactor currently carries a Zacks Rank #2 (Buy).

Ciena CIEN, Advanced Energy Industries AEIS, and MKS MKSI are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each of these stocks presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Ciena have gained 184.7% in the past 12-month period. CIEN is likely to report its first-quarter fiscal 2026 results on March 10, 2026.

Shares of Advanced Energy Industries have gained 123.4% in the past 12-month period. AEIS is likely to report its fourth-quarter 2025 results on Feb. 10, 2026.

Shares of MKS have gained 97.3% in the past 12-month period. MKSI is likely to report its fourth-quarter 2025 results on Feb. 17, 2026.

 

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This article originally published on Zacks Investment Research (zacks.com).

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