FormFactor, Inc. Q3 2026 Earnings Recap

FormFactor shares fell 11.6% after earnings, despite Q3 results topping the company’s outlook range. The likely concern is that growth is nearing capacity limits at existing factories: management said it is reaching those limits and will rely on ramping the new Farmers Branch facility through 2027.

Key Takeaways

• Q3 revenue grew close to 40% year over year within essentially the same manufacturing footprint; revenue, gross margin and EPS each exceeded the high end of the company’s outlook range.
• Foundry and Logic revenue rose 10% sequentially. FormFactor shipped probe cards for one leading-f foundry GPU design in multimillion-dollar volumes and said Farmers Branch will provide capacity for potential 2027 share gains.
• DRAM probe card revenue was essentially flat sequentially at Q2’s record level, but the mix shifted from HBM toward DDR5. The company also reported record gross margin performance, which it attributed in part to manufacturing cost reductions.
• Systems revenue reached a record, up 20% sequentially, on demand for TRITON co-packaged optics systems; the company now expects upwards of $30 million of TRITON revenue in 2026, versus its initial $10 million–$20 million expectation.
• Farmers Branch’s assembly and test operation has been qualified, and the first production unit has shipped. Management’s top priority for 2027 is ramping the facility while maintaining efficiency and product quality.