Key Highlights

  • FORM shares rose 12.95% pre-market to $94.26, up from a prior close of $83.45.
  • Q2 2026 revenue hit a record $258.2 million, up 31.9% year-over-year, versus a $240 million consensus, with non-GAAP EPS of $0.82 crushing the $0.61 estimate.
  • Growth was broad-based across DRAM, Foundry & Logic, and Systems, particularly High Bandwidth Memory and Co-Packaged Optics.
  • Management guided Q3 revenue to $270 million, plus or minus $10 million, and non-GAAP EPS to $0.86, plus or minus $0.09, both above Street expectations.

Record Revenue Driven by HBM and Co-Packaged Optics

FormFactor (NASDAQ:FORM) shares are surging in pre-market trading after the semiconductor test and measurement company delivered a strong fiscal Q2 2026 beat and issued upbeat Q3 guidance late Wednesday. The company reported record quarterly revenue of $258.2 million, up 31.9% year-over-year, versus consensus estimates of about $240 million, with non-GAAP EPS of $0.82 crushing the $0.61 estimate, driven by broad-based demand strength in DRAM, Foundry & Logic, and Systems.

FormFactor, headquartered in Livermore, California and founded in 1993, serves as the leading provider of advanced probe cards, analytical probes, probe stations, metrology systems, thermal subsystems and cryogenic systems for the global semiconductor industry. Operating through two core segments, Probe Cards and Systems, the company supports the full integrated circuit lifecycle, from research and development characterization and design debug to high-volume production testing of memory, foundry and logic, and emerging technologies such as high bandwidth memory and quantum devices.

Strong Q3 Guidance Bucks Sector Weakness

FormFactor carries a market capitalization of approximately $6.51 billion, with shares trading at a trailing price-to-earnings ratio of 51.51. The stock's 52-week range spans $26.08 to $160.27.

Management guided Q3 revenue to $270 million, plus or minus $10 million, marking another sequential record, with non-GAAP gross margin of 54%, plus or minus 150 basis points, aided by $7 million to $9 million in nonrecurring tariff refunds, and non-GAAP EPS of $0.86, plus or minus $0.09, both well above Street expectations. The company also highlighted an expanded multi-year partnership with Keystone Microtech in Taiwan's semiconductor ecosystem, while Systems segment revenue nearly doubled sequentially to a record $48.5 million.

The stock's pre-market pop of over 13% stands out sharply against a difficult backdrop for chip stocks broadly, which have been under heavy pressure this week amid concerns over AI capital spending sustainability, and a broader Nasdaq correction that saw names like Micron, AMD and SanDisk tumble. FormFactor's idiosyncratic earnings strength appears to be helping it buck that sector-wide weakness for now, with the Farmers Branch manufacturing site remaining on track to come online in Q4 2026 and ramp through 2027.

Conclusion

FormFactor's record quarter and strong forward guidance reflect genuine strength in high-bandwidth memory and co-packaged optics demand, allowing the stock to buck a broader semiconductor sector pullback this week. With the company reiterating its long-term target of doubling revenue to $1.6 billion by 2030, investors will be watching whether this pace of sequential growth can be sustained as new capacity comes online.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making financial decisions.