Overview
Semiconductor test tech firm's Q4 revenue rose 13.6% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company had acquired Keystone Photonics to enhance optics testing capabilities
Outlook
FormFactor expects Q1'26 revenue of $225 mln +/- $5 mln
Company anticipates Q1'26 non-GAAP gross margin of 45% +/- 1.5%
FormFactor sees strong demand in advanced packaging and high-performance compute markets
Result Drivers
DRAM GROWTH - Record DRAM revenue driven by increased applications in DDR4 and DDR5
GROSS MARGIN IMPROVEMENT - 540 basis points of non-GAAP gross margin improvement in H2 2025
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $215.20 mln | $210.27 mln (10 Analysts) |
Q4 Adjusted EPS | Beat | $0.46 | $0.35 (10 Analysts) |
Q4 Adjusted Net Income | Beat | $36.60 mln | $27.16 mln (9 Analysts) |
Q4 Net Income | $23.20 mln | ||
Q4 Gross Margin | 42.20% | ||
Q4 Adjusted Gross Margin | 43.90% | ||
Q4 Free Cash Flow | $34.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $64.00, about 14.3% below its February 3 closing price of $74.69
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 37 three months ago
Press Release: ID:nGNX3RKFdZ
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)
Comments