A maker of advanced probe cards and test systems that let chipmakers check silicon wafers for defects before they are cut into individual chips. Its MicroSpring technology, built from tiny MEMS contacts, can test everything from phone processors to high-bandwidth memory, and its systems even reach into cryogenic labs and quantum computing. Founded in 1993 by former IBM researcher Igor Khandros in a small New York lab, the company got its start with a springy wire interconnect and moved to Livermore, California, two years later.
Q2 FY2026 revenue rose 31.9% to $258.2M with gross margin at 50.7%
Formfactor posted its highest quarterly in the reported series. rose 31.9% to $258.2M and gross margin reached 50.7%, up 13.4 points, as DRAM probe card demand for AI and Foundry & Logic growth drove up 369.7% to $57.8M. The quarter leaves the company with record profitability and $109.8M cash after a $52.2M quarter.
Key takeaways
reached 50.7%, up 13.4 points and 12.3 points sequentially, as higher volumes, favorable product mix, and factory utilization lifted results, though $25.8M in weighed on H1 figures.
rose 31.9% to $258.2M and 14.2% sequentially to $258.2M, with DRAM probe card demand for AI and Foundry & Logic microprocessor designs driving the increase.
rose 369.7% to $57.8M and rose 518.6% to $56.2M, with at $0.71, up 491.7% from a year earlier.
Section summaries
Management's Discussion and Analysis
Record quarterly revenues and improved gross margins drove net income to $76.6M in H1 FY2026, up from $15.5M, despite higher restructuring charges.
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Total revenues rose 31.9% to $484.4M in H1 FY2026, with Probe Cards up 36.6% to $408.0M and Systems up 11.5% to $76.4M.
DRAM surged 58.6% to $167.9M, driven by high-bandwidth memory (HBM) demand for AI, while Foundry & Logic grew 26.1% on networking and HPC microprocessor designs.
was $52.2M, up 75.4% sequentially, and rose 227.1% to $61.8M; cash and equivalents were $109.8M, down 11.2% sequentially.
fell 9.9% to $10.5M, continuing the multi-year paydown that leaves the company near debt-free.
What changed
Q2 FY2025 DRAM probe-card had dipped 1.7%; in Q2 FY2026 DRAM demand drove the quarter as H1 DRAM revenue rose 58.6% to $167.9M on HBM for AI, reversing the prior-year softness.
Q2 FY2025 fell to 37.3% on tariffs and DRAM mix; Q2 FY2026 gross margin rose to 50.7%, a 13.4-point reversal as volume and mix improved.
FY2025 flagged $20M-$25M Texas factory start-up costs and $140M-$170M hitting margins; Q2 FY2026 of 50.7% shows those costs had not yet compressed results, with $25.8M noted in H1.
Q1 FY2026 Systems fell 19.9% in transition to Triton CPO testing platform; H1 FY2026 Systems rose 11.5% to $76.4M, fueled by the new Triton co-packaged optics testing platform.
FY2025 flagged $30M-$40M post-year-end restructuring charges; H1 FY2026 carried $25.8M in , confirming the charges flowed through.
China export control risk carried from FY2025 was restated with no material change in Q2 FY2026 risk factors.
What to watch
Q3 FY2026 DRAM probe-card to see if the 58.6% H1 increase on HBM demand sustains or moderates.
Q3 FY2026 as $7M-$9M tariff refunds arrive and Texas factory start-up costs begin flowing through.
Systems through the Triton co-packaged optics testing platform transition after H1 rose 11.5% to $76.4M.
Cash trajectory from $109.8M as Texas factory expansion capital is deployed.
Systems growth was fueled by the new Triton co-packaged optics testing platform, partially offset by declining legacy product sales.
Overall expanded to 44.9% from 37.4%, benefiting from higher volumes, favorable product mix, and factory utilization, though $25.8M in restructuring costs weighed on results.
Cash and investments rose to $345.6M, and the company expects $7M-$9M in tariff refunds in Q3 FY2026, while prioritizing capital for the new Texas factory expansion.
Quantitative and Qualitative Disclosures About Market Risk
For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to Item 7A “Quantitative and Qualitative Disclosures about Market Risk” contained in Part II of our Annual Report on Form 10-K for the fiscal year ended Decembe…
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For financial market risks related to changes in interest rates and foreign currency exchange rates, reference is made to Item 7A “Quantitative and Qualitative Disclosures about Market Risk” contained in Part II of our Annual Report on Form 10-K for the fiscal year ended December 27, 2025. Our exposure to market risk has not changed materially since December 27, 2025.
There have been no material changes during the three months ended June 27, 2026 to the risk factors discussed in our Annual Report on Form 10-K for the year ended December 27, 2025. If any of the identified risks actually occur, our business, financial condition and results of o…
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There have been no material changes during the three months ended June 27, 2026 to the risk factors discussed in our Annual Report on Form 10-K for the year ended December 27, 2025. If any of the identified risks actually occur, our business, financial condition and results of operations could suffer. The trading price of our common stock could decline and you may lose all or part of your investment in our common stock. The risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 27, 2025 are not the only ones we face. Additional risks that we currently do not know about or that we currently believe to be immaterial may also impair our business operations.