FormFactor (FORM) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $258.2M, up 14.2% sequentially and 31.9% year-over-year, with gross profit and EPS exceeding outlooks.

• Non-GAAP gross margin reached 53.3%, GAAP gross margin 50.7%, and non-GAAP EPS was $0.82, all at or above the high end of guidance.

• Growth was driven by high-performance compute, advanced packaging, DRAM (especially HBM), Foundry & Logic, and Systems segments.

• Net income for the first half of 2026 was $76.6M, up from $15.5M year-over-year, despite higher restructuring charges.

• Expanded partnerships and acquisitions, including Keystone Microtech and Keystone Photonics, to enhance technology and geographic reach.

Financial highlights

• Q2 2026 revenue: $258.2M; non-GAAP net income: $65.0M; GAAP net income: $56.2M; non-GAAP EPS: $0.82; GAAP EPS: $0.71.

• Free cash flow for Q2 2026 was $52.6M, up from $30.7M in Q1 2026.

• Operating income for Q2 2026 was $57.8M, up from $12.3M in Q2 2025.

• Cash and investments at quarter-end were $349M; cash, cash equivalents, and marketable securities were $345.6M.

• Working capital at June 27, 2026: $505.3M; total assets at quarter-end: $1.34B.

Outlook and guidance

• Q3 2026 revenue expected at $270M ± $10M; non-GAAP gross margin at 54% ± 150 bps; non-GAAP EPS at $0.86 ± $0.09.

• Farmers Branch site to come online in Q4 2026, ramping through 2027, expected to be accretive to gross margin by 2028.

• Target model aims to double revenue to $1.6B and more than double EPS to $5 by 2030.

• Anticipates $7.0–$9.0M in tariff refunds in Q3 2026.

• Flash revenues expected to decline as a percentage of total revenue due to facility closure and market shifts.