Semiconductor testing firm FormFactor beats Q3 revenue estimates

FormFactor

29/10/2025 20:20

Overview

FormFactor reports Q3 revenue of $202.7 mln, beating analysts' expectations

Adjusted net income for Q3 beats estimates, reaching $25.7 mln

Company's gross margin improved to 39.8% from 37.3% in Q2

Outlook

FormFactor expects Q4 revenue of $210 mln +/- $5 mln

Company anticipates Q4 gross margin of 40% +/- 1.5%

FormFactor projects Q4 non-GAAP EPS of $0.35 +/- $0.04

Result Drivers

DRAM PROBE CARDS - Double-digit sequential growth in DRAM probe cards, driven by HBM technology

SYSTEMS SEGMENT - Anticipated revenue increase in Systems Segment, with growth expected to continue in Q4

GROSS MARGIN IMPROVEMENT - Rapid gross margin improvement actions led to a 250 basis point increase from Q2

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$202.70 mln
$200 mln (9 Analysts)
Q3 Adjusted Net Income
Beat
$25.68 mln
$19.30 mln (7 Analysts)
Q3 Net Income
$15.66 mln
Q3 Gross Margin
39.80%
Q3 Adjusted Gross Margin
41%
Q3 Free Cash Flow
$19.66 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductor equipment & testing peer group is "buy."

Wall Street's median 12-month price target for FormFactor Inc is $35.00, about 21.2% below its October 28 closing price of $42.42

The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nGNXwj2jS

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)