FormFactor Inc. (NASDAQ: FORM) reported sharp year-over-year growth in fiscal third-quarter revenue and earnings, supported by higher Probe Cards and Systems sales. The semiconductor test and measurement supplier also projected fourth-quarter revenue of $285.0 million, citing continued broad-based demand strength, while its Farmers Branch capacity expansion remained on schedule.
Revenue for the quarter ended September 26, 2026, reached $280.5 million, up 38.4% from $202.7 million a year earlier and 8.6% from the second quarter. Non-GAAP gross margin was 56.5%, while non-GAAP diluted earnings rose to $1.04 per share from $0.33 a year earlier and $0.82 in the preceding quarter.
On a GAAP basis, FormFactor recorded net income of $73.8 million, or $0.93 per diluted share, compared with $15.7 million a year earlier. GAAP gross margin expanded to 54.7% from 39.8%, as gross profit increased to $153.4 million from $80.6 million.
Non-GAAP net income was $82.3 million, up from $25.7 million in the prior-year quarter. The non-GAAP calculation excluded stock-based compensation, restructuring charges, amortization and acquisition-related fair-value adjustments, and certain other items, net of associated tax effects.
Probe Cards and Systems Deliver Growth
Probe Cards remained FormFactor’s largest business, generating $221.1 million in revenue, compared with $166.4 million a year earlier. The segment’s GAAP gross margin rose to 55.3% from 40.8%.
Within Probe Cards, Foundry & Logic revenue increased to $134.0 million from $92.9 million a year earlier, while DRAM revenue rose to $84.9 million from $68.2 million. Flash revenue declined to $2.2 million from $5.3 million.
Systems revenue reached $59.5 million, up from $36.3 million in the year-ago quarter and $48.5 million in the second quarter. The segment posted a GAAP gross margin of 61.0%, compared with 42.0% a year earlier.
Taiwan was FormFactor’s largest geographic market, with revenue of $115.1 million, up from $46.9 million in the prior-year period. South Korea contributed $69.1 million, compared with $70.8 million, while U.S. revenue increased to $41.6 million from $36.4 million.
Cash Flow and Fourth-Quarter Outlook
Net cash provided by operating activities totaled $104.3 million in the third quarter. FormFactor reported $64.8 million of free cash flow under its reconciliation, after $39.6 million in capital expenditures and adjustments for cash interest and acquisition-related expenses. Free cash flow for the first nine months of 2026 totaled $148.1 million.
For the fourth quarter, management expects revenue of $285.0 million, a non-GAAP gross margin of 54.0% and non-GAAP earnings of $0.95 per share. The company said the outlook reflects continued broad-based demand strength and that the Farmers Branch ramp to its initial target capacity remains on track.
FormFactor also presented a target model of $1.6 billion in revenue, a 55% gross margin and non-GAAP earnings of $5.00 per share, without specifying a timetable in the presentation.
Customer concentration remains a material factor in the company’s revenue mix. SK hynix accounted for 20.7% of third-quarter revenue, while Taiwan Semiconductor Manufacturing Co. represented 12.8%. Together, the two customers generated 33.5% of total revenue. FormFactor also recorded $6.4 million of factory start-up costs during the quarter.
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