Key Highlights

  • FORM shares are indicated up 4.51% at $111.67 in premarket, against a prior close of $106.85.
  • Q3 results are due after the close today, with consensus EPS of $0.86 and revenue of about $270.5 million.
  • Revenue guidance of $270 million, plus or minus $10 million, implies about 33.5% growth.
  • FormFactor has beaten EPS estimates in five of the last seven quarters.
  • Options imply a post-earnings move of about 14.9%.

FormFactor (NASDAQ:FORM) shares are indicated up 4.51% at $111.67 in premarket ahead of its third-quarter report after the close today. The stock rose 5.68% on Tuesday to $106.85, rebounding from a roughly 22% slide over the past month, as SK hynix's blowout results and Anthropic and Broadcom (NASDAQ:AVGO) AI financing news revived the AI-chip trade.

FormFactor, headquartered in Livermore, California, supplies electrical and optical test and measurement technologies across the semiconductor lifecycle. Its Probe Cards segment tests SoC, GPU and custom ASIC, DRAM and HBM, NAND, RF and image sensor devices, and its Systems segment includes probe stations and cryogenic systems. It is led by CEO Michael Slessor.

What Analysts Expect

Consensus calls for EPS of $0.86 and revenue of about $270.5 million, up roughly 33.5% from a year earlier and in line with company guidance of $0.86 in EPS, plus or minus $0.09, and $270 million in revenue, plus or minus $10 million.

The company beat estimates in five of the last seven quarters. Last quarter it reported EPS of $0.82 against $0.61 expected and revenue of $258.2 million, up 31.9%, against $240 million expected. Options imply a move of about 14.9% after the report, against an average post-earnings move of about 17.0%.

Key Items to Watch

Investors will focus on DRAM probe card demand, especially DDR5, after a record $85 million in the second quarter, and on how the product mix shifts away from HBM. Other topics include foundry and logic demand tied to AI and data center CPUs, and co-packaged optics adoption in Systems, where management previously said CPO revenue would exceed $20 million in 2026.

Margins are another focus. The company guided to roughly $7 million to $9 million of tariff refunds, a temporary benefit of about 300 basis points to gross margin that may be partly offset by DRAM mix. Capacity constraints and operating expense levels are also in view.

Peer Read-Through and Valuation

SK hynix (NASDAQ:SKHY), a major FormFactor customer, posted record quarterly profit, and peer Teradyne (NASDAQ:TER) reported third-quarter revenue up 70%, a favorable read-through for semiconductor test demand. The stock is still below the average analyst target of about $152, and the 52-week range runs from $41.84 to $160.27. The tech sector ETF is up about 0.6% in premarket, with the Fed decision due later today.