FormFactor (FORM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $226.1M, up 32% year-over-year and 5.1% sequentially, with gross margin and EPS above guidance high end, driven by strong demand in probe cards for HBM, networking, and AI applications.

• Non-GAAP net income for Q1 2026 was $44.5M, significantly higher than $18.0M in Q1 2025 and $36.6M in Q4 2025.

• Major customers SK hynix and Intel accounted for over 10% of total revenue, with SK hynix at 29.5% in Q1 2026.

• Operational improvements and restructuring actions have overcome previous execution challenges, supporting sustainable financial results and future margin improvement.

• Keystone Photonics acquisition integrated, enhancing silicon photonics and CPO roadmap.

Financial highlights

• Q1 2026 revenue: $226.1M, up from $215.2M in Q4 2025 and $171.4M in Q1 2025, $1.1M above midpoint of $220M–$230M outlook.

• GAAP gross margin: 38.4% (up from 37.7% in Q1 2025, down from 42.2% in Q4 2025); non-GAAP gross margin: 49% (up from 43.9% in Q4 2025).

• GAAP net income: $20.4M ($0.26/share), up from $6.4M in Q1 2025, down from $23.2M in Q4 2025 due to restructuring costs.

• Non-GAAP net income: $44.5M ($0.56/share), up from $36.6M ($0.46/share) in Q4 and $18.0M ($0.23/share) in Q1 2025.

• Free cash flow: $30.7M, down from $34.7M in Q4, up from $6.3M in Q1 2025.

Outlook and guidance

• Q2 2026 revenue expected at $240M ±$5M, with non-GAAP gross margin at 49.5% ±150bps and non-GAAP EPS at $0.61 ±$0.04.

• Q2 non-GAAP operating expenses expected at $65M ±$2M; effective tax rate 15%-19%.

• Farmers Branch (Texas) site to come online late 2026, ramping through 2027, enabling further growth and margin expansion.

• Majority of restructuring charges expected to be incurred in fiscal 2026, with anticipated gross margin improvements.