At a glance
FormFactor Inc is worth $8.62B, about 160 times its fiscal 2025 earnings. Revenue grew 2.8% to $785.0M in fiscal 2025, with 6.9% kept as profit; over 5 years it has grown 2.5% a year. It pays no dividend; it spent $205.7M buying back its shares over FY2021–FY2025. The stock returned +160.0% over the past year with dividends reinvested and +22.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 35.8% in the 2020 crash (S&P 500: 33.7%) and 46.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 18 months after the lows.
The business in plain English
FormFactor makes equipment used to test chips, from early research through high-volume production. Its main product is the probe card: a custom-built device with thousands of microscopic contacts that touch chips while they are still on the silicon wafer, so faulty ones can be caught before packaging. Each card is designed around one customer's chip layout, and the most advanced carry more than 150,000 contacts.
In the fiscal year ended December 27, 2025, revenue was about $785 million. The Probe Cards segment brought in 81.3%. It also includes analytical probes, which engineers use for research and troubleshooting. The Systems segment brought in 18.7%. It supplies probe stations (lab machines that hold and position wafers for measurement), thermal systems that keep devices at precise temperatures, and cryogenic systems that cool devices to near absolute zero, including for quantum computing. By end market, foundry and logic chips such as processors made up 47.1% of revenue. DRAM memory chips, including high-bandwidth memory (HBM), made up 31.5%, and flash memory 2.6%.
Customers include chipmakers, foundries (contract manufacturers), fabless companies that design chips but outsource production, universities and research institutions. Sales are concentrated. SK hynix alone accounted for 19.2% to 25.0% of revenue in each quarter of fiscal 2025. Intel and Taiwan Semiconductor Manufacturing Company each topped 10% in at least one quarter.
Price history
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FORM +160.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Foundry & Logic | $369.9M | 47.1% |
| DRAM | $247.4M | 31.5% |
| Systems | $147.1M | 18.7% |
| Flash | $20.6M | 2.6% |
By business segment
| Probe Cards Segment | $637.9M | 81.3% |
| Systems Segment | $147.1M | 18.7% |
Latest results
- In Q2 FY2026 (ended Jun 27, 2026), revenue was $258.2M, up 31.9% from a year earlier, and net income was $56.2M (+518.6%).
- For fiscal 2025, revenue was $785.0M (+2.8% year over year; +2.5% a year from FY2020 to FY2025) with a 6.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +2.5% watch |
|---|---|
| Operating margin | 7.3% watch |
| Free cash flow margin | 1.5% watch |
| Return on equity (FY2025) | 5.3% weak |
| Return on assets (FY2025) | 4.4% watch |
| Net cash (cash minus debt) | $334.0M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $693.6M | $78.5M | $113.4M |
| FY2021 | $769.7M | $83.9M | $72.9M |
| FY2022 | $747.9M | $50.7M | $66.5M |
| FY2023 | $663.1M | $82.4M | $8.6M |
| FY2024 | $763.6M | $69.6M | $79.1M |
| FY2025 | $785.0M | $54.4M | $11.7M |
Valuation snapshot
| Market value | $8.62B |
|---|---|
| P/E ratio | 159.9 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
FormFactor’s market value went from $792.4M at the end of 2016 to $8.62B on Oct 28, 2026, about 10.9 times as much; since the end of 2025 it is up 99%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $8.62B | +99.3% |
| 2025 | $4.32B | +26.9% |
| 2024 | $3.41B | +5.0% |
| 2023 | $3.25B | +89.6% |
| 2022 | $1.71B | -52.1% |
| 2021 | $3.58B | +7.4% |
| 2020 | $3.33B | +69.3% |
| 2019 | $1.97B | +88.3% |
| 2018 | $1.04B | -8.6% |
| 2017 | $1.14B | +44.1% |
| 2016 | $792.4M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| FORM price data to Oct 28, 2026 | +97.8% | +160.0% | +50.2% | +22.9% | +28.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +97.8% |
| 2025 | +26.8% |
| 2024 | +5.5% |
| 2023 | +87.6% |
| 2022 | -51.4% |
| 2021 | +6.3% |
| 2020 | +65.7% |
| 2019 | +84.3% |
| 2018 | -10.0% |
| 2017 | +39.7% |
| 2016 | +24.4% |
| 2015 | +4.7% |
| 2014 | +43.1% |
| 2013 | +31.8% |
| 2012 | -9.9% |
| 2011 | -43.0% |
| 2010 | -59.2% |
| 2009 | +49.1% |
| 2008 | -55.9% |
| 2007 | -11.1% |
| 2006 | +52.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 69.3% over that stretch · deepest drop along the way 72.9%, back to its old high 144.5 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 33.4% over that stretch · deepest drop along the way 35.8%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 45.9% over that stretch · deepest drop along the way 46.4%, back to its old high 18.3 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 45 sales ($12.1M), 37 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 14, 2026 | Mike Slessor CEO, Director | sell (plan) | $966K |
| Sep 16, 2026 | Mike Slessor CEO, Director | sell (plan) | $911K |
| Sep 16, 2026 | Mike Slessor CEO, Director | sell (plan) | $817K |
| Jun 2, 2026 | Sheri Rhodes Director | sell | $794K |
| Aug 14, 2026 | Mike Slessor CEO, Director | sell (plan) | $733K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 12.4% | Jun 30, 2026 |
| Vanguard Portfolio Management | 7.61% | Mar 31, 2026 |
| Vanguard Capital Management | 5.21% | Mar 31, 2026 |
| EARNEST PARTNERS LLC | 4.8% | Jun 30, 2026 |
ETFs with the most weight in FORM
| PSI Invesco Semiconductors ETF | 2.64% |
| OASC OneAscent Small Cap Core ETF | 0.38% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.35% |
| BUYO KraneShares Man Buyout Beta Index ETF | 0.31% |
| ETHO Amplify Etho Climate Leadership U.S. ETF | 0.3% |
| QVMS Invesco S&P SmallCap 600 QVM Multi-factor ETF | 0.22% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.22% |
| SLYV SPDR S&P 600 Small Cap Value ETF | 0.21% |
What could go wrong
- Heavy reliance on a few customers. SK hynix alone made up 19.2% to 25.0% of quarterly revenue during fiscal 2025, and Intel and TSMC each topped 10% in at least one quarter. Losing or shrinking one relationship could hurt sales sharply.
- Probe cards are most of the business. The Probe Cards segment, built around custom parts that contact chips during wafer testing, brought in 81.3% of fiscal 2025 revenue. If chipmakers adopt test methods or designs that need less testing, demand could drop.
- Custom products raise inventory and production risk. Each probe card is built for one customer's chip. Misjudged demand or production problems can cause heavy inventory losses. The company disclosed restructuring costs and asset write-downs in a January 9, 2026 filing.
- Chip industry booms and busts. Semiconductor demand swings sharply. FormFactor lacks a large backlog of unfilled orders, so quarterly results depend on new orders. Revenue fell from $748 million in fiscal 2022 to $663 million in 2023.
- Price pressure and fast-moving chip technology. Rising competition can force price cuts and thinner profit margins, and rivals with more resources could offer better or cheaper products. AI-driven chip demand may also grow more slowly or shift faster than expected.
- US-China tensions and export limits. Most of FormFactor's business is international. Tighter export rules, other trade barriers or worse US-China relations could cut off sales to some customers or disrupt its operations in China. Currency swings add risk.
Recent events
- Quarterly results released
- Unregistered sale of shares; Investor presentation or announcement
- Quarterly results released
- Executive or board change; Bylaws or fiscal year changed; Shareholder vote results
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Restructuring or exit costs; Asset impairment
- Quarterly results released
For income and retirement investors
FormFactor paid no dividends in any fiscal year from 2020 through 2025, so it offers no income stream. An investor who relies on it for cash would need to trim the position, and any return would come only from changes in the share price. The company used buybacks instead, spending about $206 million to repurchase its own stock from fiscal 2021 to 2025. Even so, the share count barely moved, from about 78.2 million in October 2021 to about 78.1 million in July 2026. The buybacks did little to raise each shareholder's stake.
The shares have fallen hard in past downturns. They dropped 72.9% between October 2007 and November 2008 and did not get back to that peak until December 2020. In the 2020 COVID crash they fell 35.8% but recovered in about 2.5 months. In the 2022 bear market they fell 46.4% and took about 18 months to recover. Single stocks carry more risk than diversified funds.
Questions investors ask
How does FormFactor make money?
FormFactor makes most of its money from probe cards. These are custom-built devices with thousands of tiny contacts that touch chips on a silicon wafer so the chips can be tested before packaging. The Probe Cards segment brought in 81.3% of revenue in the fiscal year ended December 27, 2025. The Systems segment brought in 18.7%. It supplies probe stations, thermal systems and cryogenic systems used in labs, including for quantum computing research. Total revenue for that year was about $785 million.
Does FormFactor pay a dividend?
No. FormFactor paid no dividends in any fiscal year from 2020 through 2025. Instead it returned cash through share buybacks, spending about $206 million from fiscal 2021 to 2025. Those buybacks barely shrank the share count: about 78.1 million shares were outstanding in July 2026, compared with about 78.2 million in October 2021. Investors who need regular income would get none from this stock and would have to trim their holdings to raise cash.
Is FormFactor an AI stock?
Partly. Its probe cards test high-performance computing chips such as graphics processing units and custom processors. They also test DRAM memory, including high-bandwidth memory (HBM). DRAM made up 31.5% of revenue in fiscal 2025 and foundry and logic chips 47.1%. The company is also working with customers on co-packaged optics, which link data center chips using light. But its annual report warns that AI-related demand may develop more slowly than expected or change quickly. The company also serves consumer, flash memory and research markets.
What is FormFactor's P/E ratio?
It was about 159.9 as of October 28, 2026, based on fiscal 2025 diluted earnings of $0.69 per share. The price-to-earnings (P/E) ratio divides the share price by a year of profit per share, and 159.9 is a high multiple. Net income fell 21.9% in fiscal 2025, while the stock rose 160% in the year to October 28, 2026. Results improved after that. In the quarter ended June 27, 2026, revenue rose 31.9% and net income rose 518.6% from a year earlier.
How volatile is FormFactor stock?
Very volatile. As of October 28, 2026, its one-year beta was 2.74. That means the shares tended to move about 2.7 times as much as the broad market. Within that year they fell as much as 47.8%, despite a 160% one-year gain. Over about 21 years of price history, the deepest decline was 92.4%. After falling 72.9% in the 2008 financial crisis, the stock did not regain its 2007 peak until December 2020.