FormFactor

FormFactor reported Q2 FY2026. EPS came in at $0.82 against a $0.61 consensus, beat by 34.6%. Revenue was $258.2M versus $240.0M expected, beat by 7.6%. Gross margin was 42.4%, down 550 bps from last quarter.

FormFactor's Q1 FY2026 earnings report shows a solid beat on both revenue and EPS, with a significant improvement in gross margins. The company's strategic focus on margin expansion and market share gains in high-bandwidth memory (HBM) testing is paying off, setting the stage for continued growth in the coming quarters.

FormFactor did not merely clear a low bar: the surprise was that HBM-led probe cards lifted gross margin fast enough to absorb the first Farmers Branch startup costs while guiding Q1 revenue to a level investors thought might require new capacity. The market is likely mispricing the timing, because the earnings power is arriving before the capital burden peaks.

FormFactor missed the street’s top-line number, but the actionable surprise is that earnings beat while management raised the credibility of a gross-margin recovery tied to mix, cost, and Farmers Branch. The market may be mispricing this as a demand wobble when the print says operating leverage is arriving before revenue acceleration.

FormFactor missed Street EPS by -10.0% even as HBM rose, because the company is spending into Farmers Branch before gross margin proves the target model. The variant view is that investors should not treat the Q3 revenue guide as the signal; the mispriced variable is whether HBM and systems can offset a foundry and logic fade while operating expenses step up.