FORM · FormFactor, Inc.

FormFactor delivered record Q1 FY2026 revenue of $226.1 million, driven by robust demand across key end markets: DRAM revenue reached an all-time high, supported by increased adoption of HBM applications and sustained non-HBM demand; Foundry & Logic demand surged, particularly for probe cards used in networking applications. While GAAP gross margin declined to 38.4% from 42.2% in Q4 FY2025 — reflecting higher factory start-up costs ($7.1M vs. $1.7M) and cost absorption dynamics — Non-GAAP gross margin expanded sharply to 49.0%, up 510 basis points sequentially and 250 basis points above the high end of the prior outlook, underscoring improved product mix and operational leverage. Non-GAAP net income rose to $44.5 million ($0.56 diluted EPS), significantly surpassing the prior outlook’s high end, fueled by both top-line strength and disciplined expense management. Management attributed the outperformance to execution against its target model on a quarterly run-rate basis and affirmed confidence in annualized validation. The Q2 FY2026 outlook — calling for $240M +/- $5M revenue, 49.5% +/- 1.5% Non-GAAP gross margin, and $0.61 +/- $0.04 Non-GAAP EPS — signals continued momentum, with CEO Mike Slessor citing extended sequential growth in revenue, gross margin, and EPS as evidence of sustained demand and operational discipline. Notably, the company highlighted no material changes in foreign currency assumptions and maintained its forward-looking statements framework, emphasizing risks including trade restrictions, demand volatility, and macroeconomic uncertainty.