FormFactor Inc

NASDAQ:FORM

Record quarter: FormFactor said Q2 revenue, gross profit and EPS were all-time records, with revenue of $258.2 million and non-GAAP EPS of $0.82, both above its outlook.

Margin strength: Non-GAAP gross margin reached 53.3%, but management said the sustainable baseline is closer to 51% at current volumes and mix before Farmers Branch ramps.

Outlook up: Q3 revenue is guided to $270 million, plus or minus $10 million, with non-GAAP EPS of $0.86, plus or minus $0.09, and management expects another record quarter.

HBM and DDR: DRAM demand stayed strong, led by HBM4, but Q3 mix should shift meaningfully toward DDR as customers chase better pricing in a constrained supply environment.

CPO accelerating: Co-packaged optics is ramping faster than expected, with 2026 revenue now expected to exceed $20 million, ahead of the original $10 million to $20 million range.

Farmers Branch: The new manufacturing site remains on track to ramp in Q4 and through 2027, and management said it should be accretive to gross margin once fully ramped.

AI-driven demand: Foundry and logic strength was tied to data center CPUs, GPUs, custom ASICs and hyperscaler demand, reinforcing FormFactor’s diversification strategy.