Key Stats for FormFactor Stock
- Price Change: +17.06%
- Current Price: $83.78
- Analyst Consensus Target: $71
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What Happened?
Shares of FormFactor, Inc. (FORM) jumped 17.1% to close at $83.78 on Wednesday after the company posted strong Q4 2025 results and upbeat guidance for 2026 (press release).
The move capped a powerful run in which the stock has delivered an 80.7% total return over the past year as investors rewarded its exposure to advanced semiconductor testing.
Management highlighted continued strength in demand for probe cards used in high‑performance computing, AI accelerators, and leading‑edge memory, and this momentum supported confidence in a multi‑year growth cycle (earnings recap).
On the earnings call, executives pointed to improving utilization at key foundry and logic customers, and they noted that advanced packaging and 3‑nanometer ramps are driving higher test intensity per chip.
FormFactor has also benefited from a healthier mix toward complex, high‑value probe cards and from disciplined expense control, so margins have been improving from prior trough levels.
At recent investor conferences, the company emphasized that its thermal and cryogenic systems expand its addressable market beyond traditional wafer probe, which provides an additional structural tailwind as chip complexity rises.
Sector peers in semiconductor capital equipment have also rallied as investors grow more optimistic about a cyclical recovery in wafer fabrication spending in 2026, and FormFactor is seen as a key beneficiary.
The company ended the latest quarter with net cash of roughly $243 million and no net debt, which gives it flexibility to invest through the cycle and potentially pursue selective M&A (press release).
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Is FormFactor Undervalued Today?
On recent calls, FormFactor’s leadership has stressed that the company is building a more diversified, higher‑margin test platform as it leans into advanced logic, memory, and quantum computing opportunities (call highlights).
They highlighted that last‑twelve‑month gross margins sit around 39.0%, while EBIT margins have improved to 7.3%, and they believe further operational efficiency could support additional margin expansion over time.
Moreover, forward‑looking estimates point to robust fundamental momentum, because analysts expect revenue to grow at roughly an 10.8% compound annual rate over the next two years, with EBITDA and EPS projected to compound at 27.8% and 31.2%, respectively.
According to TIKR’s Advanced Valuation Model, the current market price of $83.78 appears to embed optimistic assumptions about long‑term growth and margins, so there may be limited upside relative to the Street’s $71.00 target:
- Target Price: $86.61
- Current Price: $71.57
- Potential Upside: +21% over the next 5.9 years
If the company can deliver on analysts’ expectations for double‑digit revenue growth and outsized EPS gains while maintaining disciplined capital allocation, then the gap between its intrinsic value and prevailing market expectations could gradually narrow over the coming years.
Conclusion: FormFactor is positioned to benefit from the next leg of semiconductor test demand. With solid balance sheet strength and double‑digit growth expectations, the stock offers leveraged exposure to advanced logic, memory, and AI‑driven chip complexity as the cycle normalizes into 2026.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
