FormFactor, Inc. reported first‑quarter 2026 revenue of $226.1 million, a 5.1% sequential increase and a 32.0% year‑over‑year gain over $171.4 million in Q1 2025. The growth was largely driven by robust demand for high‑bandwidth memory (HBM) probe cards, which have higher margins, and by expanding sales in foundry and logic networking applications. The company’s revenue mix shift toward these higher‑margin products helped offset any softness in legacy segments.
GAAP net income rose to $20.4 million, or $0.26 per fully‑diluted share, while non‑GAAP net income reached $44.5 million, or $0.56 per share. The non‑GAAP earnings per share beat consensus estimates of $0.44–$0.45 by roughly 25–28%. The beat was driven by disciplined cost control, a favorable product mix that increased the proportion of high‑margin HBM cards, and operational leverage as revenue expanded.
Non‑GAAP gross margin climbed to 49.0%, up from 43.9% in Q4 2025 and 39.2% in Q1 2025. The margin expansion reflects higher‑margin HBM probe card sales and targeted cost‑control initiatives, including supply‑chain efficiencies and improved manufacturing throughput. The company’s focus on higher‑margin segments has translated into a stronger gross‑margin profile despite ongoing tariff pressures that continue to weigh on overall profitability.
Management guided for Q2 2026 revenue of $235 million to $245 million and a non‑GAAP gross margin of 49.5% ± 1.5%. The guidance range signals confidence in sustained demand for HBM and foundry products, as well as continued margin improvement. EPS guidance for the quarter is projected at $0.57 to $0.65, reflecting the company’s expectation of maintaining the current earnings momentum.
Analysts noted the strong EPS beat and margin expansion as key drivers of the positive market reaction. While tariffs still pose a headwind, management’s ongoing mitigation efforts and the company’s strategic focus on high‑margin segments are viewed as mitigating factors. The overall consensus is that FormFactor’s results reinforce its competitive position in the semiconductor testing market and support a bullish outlook for the remainder of the fiscal year.
CEO Mike Slessor highlighted that the company’s growth is fueled by “strength in familiar areas like probe cards for high‑bandwidth memory and accelerating contributions from newer foundry and logic opportunities.” CFO Aric McKinnis emphasized the company’s commitment to improving profitability to reach a target of 47% non‑GAAP gross margin, underscoring the firm’s focus on operational excellence.
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