FORM's Q3 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise

FormFactor FORM reported third-quarter 2025 non-GAAP earnings of 33 cents per share, comfortably surpassing the Zacks Consensus Estimate by 32%. The bottom line decreased 5.7% year over year. Shares were up 23.5% at the time of writing this article. Revenues of $202.7 million beat the Zacks Consensus Estimate by 1.31% but decreased 2.5% year over year.FORM’s Segmental Revenue DetailsProbe card revenues were $166.4 million, down 3.4% year over year. The decrease was driven by lower Foundry & Logic revenues. Foundry & Logic revenues (45.8% of the total revenues) were $92.9 million, down 13.6% year over year. DRAM revenues (33.6% of the total revenues) were $68.2 million, up 13.3% year over year. Flash revenues (2.6% of the total revenues) were $5.3 million, up 17.8% year over year. Systems revenues (17.9% of the total revenues) were $36.3 million, up 1.7% year over year. FormFactor, Inc. Price, Consensus and EPS Surprise FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote Revenues generated from South Korea, Japan, Malaysia, Singapore and the Rest of the World increased 69.8%, 40.7%, 9.4%, 80% and 14.3%, respectively, year over year. However, revenues from the United States, Taiwan, China and Europe declined 33.8%, 2.1%, 66.1% and 5.1%, respectively, year over year.FORM’s Operating ResultsIn the third quarter of 2025, the gross margin contracted 110 basis points (bps) year over year to 41%.Non-GAAP operating expenses decreased 8% year over year to $54.6 million. As a percentage of revenues, operating expenses were down 160 bps year over year to 26.9%.The non-GAAP operating margin improved 50 bps year over year to 14.1%.FormFactor’s Balance Sheet & Cash FlowAs of Sept. 27, 2025, cash and cash equivalents, and marketable securities were $266 million compared with $249.3 million as of June 28, 2025.Cash generated from operating activities was $27 million in the reported quarter, up from $18.9 million in the previous quarter. Free cash flow was $19.7 million.FORM Offers Optimistic Q3 GuidanceFORM expects third-quarter 2025 revenues of $210 million (+/- $5 million). The Zacks Consensus Estimate for revenues is currently pegged at $199.43 million, suggesting 5.3% growth over the figure reported in the year-ago quarter.The company expects a non-GAAP gross margin of 42% (+/- 1.5%). On a non-GAAP basis, FORM expects earnings of 35 cents (+/- 4 cents) per share. The Zacks Consensus Estimate for earnings is currently pegged at 28 cents per share, suggesting 3.7% growth over the figure reported in the year-ago quarter.FormFactor’s Zacks Rank & Stocks to ConsiderFormFactor currently carries a Zacks Rank #3 (Hold).Cirrus Logic CRUS, Fair Isaac FICO and CoreWeave CRWV are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.Cirrus Logic shares have returned 31.9% year to date. CRUS is scheduled to release second-quarter fiscal 2026 results on Nov. 4. Cirrus Logic sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Fair Isaac shares have dropped 21.3% year to date. This Zacks Rank #1 company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5.  CoreWeave shares have surged 249.9% since its initial public offering. CRWV is set to report its third-quarter 2025 results on Nov. 10. CoreWeave currently has a Zacks Rank #2 (Buy). Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM): Free Stock Analysis Report Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks