FormFactor Acquires Keystone Photonics to Accelerate Optical Technology Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 15 2025
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Should l Buy FORM?
Source: Globenewswire
- Acquisition Strategy: FormFactor's acquisition of Keystone Photonics strengthens its leadership in silicon photonics and co-packaged optics testing, positioning the company to enhance its competitiveness in the rapidly growing AI infrastructure market.
- Market Outlook: The silicon photonics market is forecasted to grow at nearly 30% annually, and through this acquisition, FormFactor is better equipped to meet the increasing demand for high-performance computing and data centers, thereby increasing its market share.
- Technology Integration: The acquisition combines Keystone's optical coupling technology with FormFactor's powerful probing automation, delivering solutions with high test speed and unmatched data accuracy, which enhances customers' innovation capabilities and success rates.
- Industry Vision: FormFactor CEO Mike Slessor emphasized that the shared vision is to accelerate the ramp-up of high-volume silicon photonics and co-packaged optics production to address the transformative demands of generative AI and advanced packaging in data centers.
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Analyst Views on FORM
Wall Street analysts forecast FORM stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 93.680
Low
42.00
Averages
57.00
High
78.00
Current: 93.680
Low
42.00
Averages
57.00
High
78.00
About FORM
FormFactor, Inc. is a provider of essential test and measurement technologies along the full semiconductor product lifecycle, from characterization, modeling, reliability, and design de-bug to qualification and production test. The Company provides a range of high-performance probe cards, analytical probes, probe stations, thermal systems, and cryogenic systems to both semiconductor companies and scientific institutions. Its products provide electrical and optical information from a variety of semiconductor and electro-optical devices and integrated circuits from early research, through development, to high-volume production. It operates in two segments: Probe Cards and the Systems. The Probe Cards segment includes sales of its probe cards and analytical probes. The Systems segment includes sales of its probe stations, thermal systems and cryogenic systems. It also offers optical probing technology for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Formfactor Director Sells Shares
- Share Sale: On February 10, 2026, Formfactor's Director Thomas St. Dennis sold 7,431 shares for a total of $697,300, indicating a management decision regarding liquidity.
- Market Reaction: The sale occurred without significant announcements, likely resulting in a neutral impact on market sentiment, prompting investors to monitor future changes in board member holdings.
- Corporate Governance: Changes in director shareholdings are often viewed as indicators of corporate governance transparency, potentially affecting investor trust in the management team.
- Investor Attention: Although this transaction did not significantly impact the stock price, investors should continue to watch Formfactor's executive trades to assess the company's strategic direction and potential risks.
See More
FormFactor Reports Strong Q4 Results and Upbeat Guidance
- Strong Earnings: FormFactor reported Q4 earnings of $0.46 per share, exceeding the market expectation of $0.35 and significantly up from $0.27 a year ago, indicating a notable improvement in profitability.
- Revenue Growth: The company achieved Q4 revenue of $215.16 million, a 13.6% year-over-year increase, surpassing analyst expectations and reflecting robust market demand recovery.
- Optimistic Outlook: FormFactor expects Q1 adjusted earnings between $0.41 and $0.49 per share, well above the $0.32 projected by analysts, with revenue guidance of $220 million to $230 million, showcasing strong growth potential.
- Strong Technical Setup: FormFactor's stock is currently trading above key moving averages, indicating strong bullish momentum, with a 105.17% increase over the past 12 months, nearing its 52-week high, reflecting market confidence in its future performance.
See More
FormFactor Exceeds Q4 2025 Revenue and Margin Expectations
- Strong Performance: FormFactor reported Q4 2025 revenues of $215.2 million, exceeding expectations and reflecting a 24.5% increase from Q3, while achieving a GAAP gross margin of 42.2%, up 2.4 percentage points sequentially, indicating robust market performance and growth potential.
- Optimistic Outlook: Management projects Q1 2026 revenues around $225 million, with gross margins expected to reach 45%, demonstrating confidence in ongoing operational improvements and tariff mitigation efforts, which are anticipated to further enhance profitability.
- Market Leadership: CEO Slessor highlighted record performance in the DRAM probe card market, particularly in HBM, forecasting another record-breaking quarter, reflecting strong demand and market share growth in high-performance computing and advanced packaging sectors.
- Strategic Investment and Acquisition: The December acquisition of Keystone Photonics enhances FormFactor's technological leadership in co-packaged optics testing, indicating the company's ongoing commitment to innovation and market expansion aimed at capturing future growth opportunities.
See More
FormFactor (FORM) Q4 2025 Earnings Call Transcript
See More
FormFactor Q4 Earnings Exceed Expectations with Strong Revenue Growth
- Earnings Beat: FormFactor reported a Q4 non-GAAP EPS of $0.46, surpassing expectations by $0.11, indicating strong performance and improved profitability in the semiconductor testing sector.
- Significant Revenue Growth: The company achieved Q4 revenue of $215.1 million, reflecting a 13.5% year-over-year increase and exceeding market expectations by $4.5 million, showcasing sustained demand in the market.
- Optimistic Outlook: For Q1 2026, FormFactor projects revenue to fluctuate around $225 million with a gross margin target of 34%, reflecting confidence in future market demand and ongoing profitability.
- Increased Net Income Expectations: The anticipated net income per diluted share is $0.34, significantly higher than the previous year, indicating improvements in cost control and operational efficiency that will drive future profitability.
See More
FormFactor to Announce Q4 Earnings on February 4
- Earnings Announcement: FormFactor (FORM) is set to release its Q4 2023 earnings on February 4 after market close, with consensus EPS estimates at $0.35, reflecting a 29.6% year-over-year increase, indicating ongoing improvements in profitability.
- Revenue Growth Expectations: Analysts project revenue to reach $210.6 million, marking an 11.1% year-over-year increase, showcasing the company's robust performance and demand growth in the semiconductor testing market.
- Historical Performance Review: Over the past two years, FormFactor has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, demonstrating stability in financial performance and market confidence.
- Market Analysis Insights: Recent analyses suggest that FormFactor is benefiting from the memory shortage trend, which is expected to drive future performance growth and further solidify its competitive position in the technology sector.
See More
Formfactor Director Sells Shares
- Share Sale: On February 10, 2026, Formfactor's Director Thomas St. Dennis sold 7,431 shares for a total of $697,300, indicating a management decision regarding liquidity.
- Market Reaction: The sale occurred without significant announcements, likely resulting in a neutral impact on market sentiment, prompting investors to monitor future changes in board member holdings.
- Corporate Governance: Changes in director shareholdings are often viewed as indicators of corporate governance transparency, potentially affecting investor trust in the management team.
- Investor Attention: Although this transaction did not significantly impact the stock price, investors should continue to watch Formfactor's executive trades to assess the company's strategic direction and potential risks.
See More
FormFactor Reports Strong Q4 Results and Upbeat Guidance
- Strong Earnings: FormFactor reported Q4 earnings of $0.46 per share, exceeding the market expectation of $0.35 and significantly up from $0.27 a year ago, indicating a notable improvement in profitability.
- Revenue Growth: The company achieved Q4 revenue of $215.16 million, a 13.6% year-over-year increase, surpassing analyst expectations and reflecting robust market demand recovery.
- Optimistic Outlook: FormFactor expects Q1 adjusted earnings between $0.41 and $0.49 per share, well above the $0.32 projected by analysts, with revenue guidance of $220 million to $230 million, showcasing strong growth potential.
- Strong Technical Setup: FormFactor's stock is currently trading above key moving averages, indicating strong bullish momentum, with a 105.17% increase over the past 12 months, nearing its 52-week high, reflecting market confidence in its future performance.
See More
FormFactor Exceeds Q4 2025 Revenue and Margin Expectations
- Strong Performance: FormFactor reported Q4 2025 revenues of $215.2 million, exceeding expectations and reflecting a 24.5% increase from Q3, while achieving a GAAP gross margin of 42.2%, up 2.4 percentage points sequentially, indicating robust market performance and growth potential.
- Optimistic Outlook: Management projects Q1 2026 revenues around $225 million, with gross margins expected to reach 45%, demonstrating confidence in ongoing operational improvements and tariff mitigation efforts, which are anticipated to further enhance profitability.
- Market Leadership: CEO Slessor highlighted record performance in the DRAM probe card market, particularly in HBM, forecasting another record-breaking quarter, reflecting strong demand and market share growth in high-performance computing and advanced packaging sectors.
- Strategic Investment and Acquisition: The December acquisition of Keystone Photonics enhances FormFactor's technological leadership in co-packaged optics testing, indicating the company's ongoing commitment to innovation and market expansion aimed at capturing future growth opportunities.
See More
FormFactor (FORM) Q4 2025 Earnings Call Transcript
See More
FormFactor Q4 Earnings Exceed Expectations with Strong Revenue Growth
- Earnings Beat: FormFactor reported a Q4 non-GAAP EPS of $0.46, surpassing expectations by $0.11, indicating strong performance and improved profitability in the semiconductor testing sector.
- Significant Revenue Growth: The company achieved Q4 revenue of $215.1 million, reflecting a 13.5% year-over-year increase and exceeding market expectations by $4.5 million, showcasing sustained demand in the market.
- Optimistic Outlook: For Q1 2026, FormFactor projects revenue to fluctuate around $225 million with a gross margin target of 34%, reflecting confidence in future market demand and ongoing profitability.
- Increased Net Income Expectations: The anticipated net income per diluted share is $0.34, significantly higher than the previous year, indicating improvements in cost control and operational efficiency that will drive future profitability.
See More
FormFactor to Announce Q4 Earnings on February 4
- Earnings Announcement: FormFactor (FORM) is set to release its Q4 2023 earnings on February 4 after market close, with consensus EPS estimates at $0.35, reflecting a 29.6% year-over-year increase, indicating ongoing improvements in profitability.
- Revenue Growth Expectations: Analysts project revenue to reach $210.6 million, marking an 11.1% year-over-year increase, showcasing the company's robust performance and demand growth in the semiconductor testing market.
- Historical Performance Review: Over the past two years, FormFactor has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, demonstrating stability in financial performance and market confidence.
- Market Analysis Insights: Recent analyses suggest that FormFactor is benefiting from the memory shortage trend, which is expected to drive future performance growth and further solidify its competitive position in the technology sector.
See More
