A month has gone by since the last earnings report for FormFactor (FORM). Shares have added about 3.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for FormFactor, Inc. before we dive into how investors and analysts have reacted as of late.
FORM Q4 Earnings Surpass Estimates, Revenues Up Y/Y
FormFactor 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.
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 65.71% due to these changes.
VGM Scores
At this time, FormFactor has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise FormFactor has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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FormFactor, Inc. (FORM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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