FormFactor Smashes Records on AI and HBM Testing Demand

LIVERMORE, CA – April 29, 2026 – FormFactor, Inc. announced a record-breaking first quarter, delivering financial results that significantly surpassed expectations and underscored the company's critical position within the booming artificial intelligence and semiconductor markets. The provider of essential test and measurement technologies reported its second consecutive all-time record revenue, driven by voracious demand for advanced memory and networking components that form the backbone of the AI revolution.

For the quarter ending March 28, 2026, FormFactor posted revenues of $226.1 million, a substantial 32.0% increase from the same period last year and a 5.1% sequential rise. The performance was strong across the board, with non-GAAP gross margins and earnings per share soaring past the high end of the company’s own optimistic outlook.

“FormFactor’s first quarter revenue grew sequentially to the second consecutive all-time record, with gross margin and earnings per share significantly above the high end of our outlook range,” said CEO Mike Slessor in the company's official announcement. “These outstanding results exceed our target model on a quarterly run-rate basis and together with our current quarter outlook is expected to validate the model on an annualized basis.”

Riding the Semiconductor Supercycle

FormFactor's stellar performance is not happening in a vacuum. It is a direct reflection of a historic surge across the semiconductor industry, which is projected to see revenues climb as high as $1.3 trillion in 2026, according to some industry analysts. This growth is primarily fueled by massive investments in AI infrastructure by hyperscale data centers.

At the heart of this boom is High Bandwidth Memory (HBM), a type of advanced DRAM stacked vertically to provide the immense memory bandwidth required by AI processors. The demand for HBM is so intense that major memory manufacturers like Samsung, SK Hynix, and Micron have already sold out their entire 2026 capacity and are taking orders for 2027. This has created what many are calling a memory "supercycle," with HBM production being prioritized and prices for all types of memory on the rise.

FormFactor's results confirm its deep integration into this critical supply chain. The company reported record-breaking DRAM revenue, explicitly citing “increased demand in HBM applications” as a key driver. This indicates that as memory makers ramp up the production of these complex, high-value chips, they are relying heavily on FormFactor’s specialized testing equipment to ensure quality and performance.

The Unsung Heroes: Advanced Chip Testing

The chips powering the AI era are marvels of engineering, but their complexity presents immense manufacturing and testing challenges. As components like HBM and AI accelerators become denser, faster, and more powerful, the task of verifying their functionality becomes exponentially harder. This is where FormFactor’s technology plays an indispensable role.

The company specializes in probe cards, sophisticated interfaces that create a temporary electrical connection between a semiconductor wafer and a test system. For modern chips featuring advanced 2.5D and 3D packaging—where logic and memory dies are stacked and interconnected—these probe cards must be incredibly precise. They need to make contact with thousands of microscopic pads simultaneously, with ultrafine pitch and perfect signal integrity, to ensure every part of the complex chip works as designed.

FormFactor's Q1 report also highlighted a “significant increase in Foundry & Logic demand driven by growth in probe cards for networking applications.” This demonstrates that the company is benefiting from multiple pillars of the AI infrastructure buildout. Beyond just the memory used in AI servers, the high-speed networking components that connect them also require advanced testing, creating another powerful stream of demand for the company's products.

Financial Strength and Operational Excellence

Beyond the headline revenue figure, FormFactor’s financial details paint a picture of a company executing with remarkable efficiency. Its non-GAAP gross margin hit 49.0%, a stunning 510 basis points higher than the previous quarter and 250 basis points above the top end of its own forecast. This suggests strong pricing power and excellent operational control, even as it scales to meet surging demand.

This profitability translated directly to the bottom line, with non-GAAP earnings per share of $0.56, also handily beating guidance. The company generated $30.7 million in free cash flow, a nearly five-fold increase from the $6.3 million generated in the same quarter a year ago, showcasing its ability to convert record profits into tangible cash.

While the GAAP results were impacted by significant restructuring charges, these are viewed by analysts as strategic moves to optimize operations and align resources with the highest-growth opportunities in the HBM and AI space. The strong non-GAAP performance, which excludes such one-time items, is seen as a more accurate reflection of the company's underlying operational health and future earnings potential.

A Bullish Outlook for the Future

FormFactor shows no signs of slowing down. The company issued a confident outlook for the second quarter, projecting another revenue record with a midpoint of $240 million. It also expects to see further sequential increases in both gross margin and earnings per share.

“In the second quarter, we expect to again set a revenue record and deliver sequential increases in both gross margin and earnings per share, extending the momentum that began in the second half of last year,” Slessor added.

This confident forecast comes at a time when the broader AI supply chain is facing bottlenecks in advanced packaging and HBM availability. FormFactor's ability to not only navigate but thrive in this environment positions it as a key enabler. As chipmakers race to meet the world's insatiable demand for AI, the test and measurement technologies provided by FormFactor are proving to be more critical, and more valuable, than ever before.