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FORM · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is FormFactor, Inc. (FORM) stock moving?
FORM posted a strong Q3 2026: revenue of $280.5M beat the $270.5M estimate, GAAP gross margin rose to 54.7% from 50.7% in Q2, and operating cash flow reached $104.3M. Q4 adjusted EPS guidance of $0.86-$1.04 sits above the $0.81 consensus, and the sales midpoint of $285M is above the $278.4M estimate. The Oct 12 Teradyne collaboration includes a $300M strategic equity investment that is still subject to closing conditions. The share price, however, fell from a $110.31 close on Oct 28 to $71.76 on Nov 5, a drop of about 35%, on heavy volume (3.16M shares on Oct 29 and 2.62M on Nov 5). The news items reviewed do not give a direct cause for that sell-off. The stock has since rebounded to $85.63 on Nov 10 on lighter volume, still about 22% below the Oct 28 close. Analysts are split: Evercore and B. Riley keep Buy ratings but cut targets to $140 and $125, Freedom upgraded to Buy with a $140 target, while Needham and TD Cowen remain at Hold. Recent price-target cuts and the unexplained drop suggest near-term caution, while the earnings beat, raised guidance and Teradyne investment support the longer-term case.
News behind the analysis
- FormFactor Publishes 2025 Sustainability ReportFormFactor released its 2025 Sustainability Report detailing its ESG strategy and performance. This is a routine disclosure with little bearing on near-term results.
- B. Riley Adjusts Price Target on FormFactor to $125 From $150B. Riley cut its price target from $150 to $125 while keeping a Buy rating. The cut follows the stock's slide from late October.
- Freedom Capital Markets Upgrades FormFactor to BuyFreedom Capital Markets upgraded FormFactor from Hold to Buy and kept a $140 price target. The upgrade came after the stock had already fallen sharply.
- Needham Maintains Hold Rating on FormFactorNeedham analyst Charles Shi maintained a Hold rating on FormFactor. This keeps a cautious view among the analysts covering the stock.
- TD Cowen Maintains Hold on FormFactor, Raises Price Target to $110TD Cowen kept a Hold rating and raised its price target to $110. The target sits above the Nov 10 close of $85.63.
- Evercore Adjusts FormFactor Price Target to $140Evercore maintained a Buy rating and cut its price target from $150 to $140. The cut came the same day as the Q3 results.
- FormFactor, Inc. Reports Third Quarter 2026 Financial ResultsQ3 revenue was $280.5M, up 38.4% year over year, with GAAP EPS of $0.93 and non-GAAP EPS of $1.04. Non-GAAP gross margin reached 56.5%, and the company said results exceeded the high end of its outlook.
- FormFactor Sees Q4 Adj EPS $0.86-$1.04 vs $0.81 Est; Sees Sales $275.000M-$295.000M vs $278.358M EstFormFactor guided Q4 adjusted EPS to $0.86-$1.04 against a $0.81 estimate. Sales guidance of $275M-$295M brackets the $278.4M consensus, with the midpoint above it.
- FormFactor Q3 Adj. EPS $1.04 Beats $0.86 Estimate, Sales $280.547M Beat $270.521M EstimateFormFactor beat consensus on both adjusted EPS and sales in Q3. Sales came in at $280.5M against a $270.5M estimate.
- Evercore ISI Group Maintains Outperform on FormFactor, Lowers Price Target to $140Evercore ISI kept an Outperform rating and lowered its price target to $140. The note followed the Q3 beat.
About FormFactor Inc.
FormFactor is a Livermore, California-based maker of probe cards, the precision tools that test chips while they're still on the silicon wafer, plus probe stations and measurement systems used in chip development. It's one of the largest probe card suppliers in the world, and in recent years demand for high-bandwidth memory (HBM) and advanced logic chips used in AI has driven its growth.
How it makes money
Most revenue comes from Probe Cards, which made up about 79% of sales in Q3 2026. Probe cards are largely custom-built for each chip design and wear out with use, so chipmakers keep buying replacements. The cards are sold to chipmakers working in foundry and logic (making chips for other companies, plus processors and other logic chips), DRAM (including HBM) and flash memory. The rest comes from the Systems segment: probe stations, cryogenic (ultra-cold) test systems and optical measurement tools used in labs and engineering work. Quarterly revenue was about $281 million in Q3 2026, up roughly 38% from a year earlier.
What usually moves FORM
- AI-driven demand for HBM and advanced logic chips
- Chipmakers' spending on new chip designs and production capacity
- Memory industry cycles (DRAM and flash)
- Gross margin swings from factory consolidation and production efficiency
- Export rules and trade with China