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FormFactor’s 40% Revenue Growth: Can AI Chip Demand Sustain Its Momentum?

FormFactor, Inc. reported third-quarter 2026 results reflecting continued revenue growth, gross margin expansion, and improved earnings per share, each exceeding the company’s high-end guidance. Revenue increased by approximately 9% sequentially to $280.5 million and was nearly 40% higher than the same quarter last year, achieved without expansion of the existing manufacturing footprint. The company highlighted ongoing operational efficiencies such as improved cycle times, yields, and spending discipline as contributors to margin and profitability growth. Non-GAAP gross margin reached 56.5%, driven partly by non-recurring tariff refunds and favorable subcomponent costs, which positively impacted margins by roughly 380 basis points. Excluding these factors, the gross margin baseline was raised to about 53%, an improvement from previous quarters. Key growth drivers included the Foundry and Logic segment, which showed about 10% sequential growth supported by diverse applications spanning PCs, mobile, data center CPUs, GPUs, and hyperscaler ASICs.