Description

FormFactor: Revenue Capped Near $240 Million Quarterly By Capacity Is The Constraint Behind Underperform!

FormFactor reported first-quarter 2026 revenues of $226.1 million, marginally above the midpoint of its guidance range, marking a sequential growth to a new record. Non-GAAP gross margins expanded significantly to 49.0%, representing a 510 basis point increase from the prior quarter and exceeding the high end of the forecast. This improvement was primarily attributed to operational efficiencies in the Probe Card segment, partially offset by a seasonal decline and ongoing transition in the Systems segment. GAAP gross margins, however, declined to 38.4%, impacted mainly by $21.5 million in restructuring charges related to operational restructuring announced in January 2026. Revenue growth was driven by strength in key product areas, including probe cards for high-bandwidth memory (HBM) and networking applications. Notably, a leader in high-performance compute became a 10% customer for the first time, tied to networking and with ongoing development in GPUs and co-package optics.