FormFactor Reports 32% Revenue Growth to $226.1 Million in Latest Quarter

FormFactor, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $226.1 million for the three months ended March 28, 2026, a 32% increase from $171.4 million in the same period last year. The company achieved a net income of $20.4 million, compared to $6.4 million in the prior year, reflecting a substantial improvement in profitability. This increase in net income was primarily driven by higher revenues and improved gross margins, despite incurring higher restructuring charges related to ongoing operational adjustments.

The company's gross profit for the quarter was $86.8 million, yielding a gross margin of 38.4%, up from 37.7% in the previous year. The increase in gross profit was attributed to a favorable product mix and higher factory utilization, although it was partially offset by $21.5 million in restructuring costs associated with the 2026 Restructuring Plans. Operating expenses totaled $70.1 million, which included $30.8 million in research and development and $32.3 million in selling, general, and administrative expenses. The company also reported an operating income of $16.6 million, a significant rise from $3.3 million in the prior year.

FormFactor's strategic developments included the acquisition of Keystone Photonics in December 2025, which expanded its capabilities in optical probing technology for silicon photonics and co-packaged optics devices. This acquisition is expected to enhance the company's offerings as these technologies transition into high-volume manufacturing. Additionally, the company is consolidating its manufacturing facilities in California to align its cost structure with current business needs, which is part of its broader restructuring strategy aimed at improving operational efficiency.

In terms of operational metrics, FormFactor's customer base remains concentrated, with key clients such as SK hynix, Intel, and NVIDIA accounting for a significant portion of revenues. The company reported a notable increase in demand for its probe cards, particularly in the DRAM and Foundry & Logic markets, driven by advancements in high-bandwidth memory designs for artificial intelligence applications. Geographically, revenues from South Korea and Taiwan saw substantial growth, reflecting increased demand for the company's products in these regions.

Looking ahead, FormFactor anticipates continued revenue growth driven by strong demand in its core markets and the successful integration of its recent acquisition. The company expects to maintain its focus on operational improvements and cost management while leveraging its expanded manufacturing capabilities to support future growth. The outlook remains positive, with expectations for further enhancements in gross margins as restructuring efforts take effect and production ramps up at the new facility in Texas.