FORM · FormFactor, Inc.

FormFactor's Q2 FY2026 results marked a record quarter, with revenue of $258.2M surpassing the high end of prior guidance, driven by broad-based demand across key end markets. Revenue grew 14.2% sequentially and 31.9% year-over-year, reflecting strength in High Bandwidth Memory and Co-Packaged Optics initiatives. GAAP gross margin expanded dramatically to 50.7% from 37.3% a year ago, while Non-GAAP gross margin reached 53.3%, up from 38.5%, underscoring improved operational leverage and product mix. GAAP net income of $56.2M ($0.71 per diluted share) compared to $9.1M ($0.12) in the prior year, and Non-GAAP net income of $65.0M ($0.82 diluted) tripled from $21.2M ($0.27). Cash flow generation was robust, with operating cash flow of $61.8M and free cash flow of $52.6M, enabling continued investment in growth. Management highlighted the expanded partnership with Keystone Microtech in Taiwan as a strategic reinforcement. Guidance for Q3 FY2026 calls for another record: revenue of $270M ± $10M, with GAAP gross margin of 52.0% ± 1.5% and Non-GAAP gross margin of 54.0% ± 1.5%, and Non-GAAP EPS of $0.86 ± $0.09. CEO Mike Slessor's commentary emphasized that the company is positioned for continued revenue and profitability growth, driven by strong demand in Foundry & Logic and Systems. The results underscore FormFactor's successful execution in high-performance compute and advanced packaging, and the outlook suggests sustained momentum.