FORMFACTOR INC (NASDAQ:FORM) Reports Mixed Q2 2025 Results as Market Reacts Sharply
FormFactor Inc. released its second-quarter fiscal 2025 earnings, delivering revenue and earnings per share (EPS) figures that painted a mixed picture compared to analyst expectations. The semiconductor test and measurement solutions provider reported revenue of $195.8 million, slightly surpassing the consensus estimate of $194 million. However, the company’s EPS of $0.27 fell short of the anticipated $0.31, contributing to a steep after-hours sell-off that saw shares drop more than 24%.
Key Takeaways from the Earnings Report
- Revenue Performance: Q2 sales of $195.8 million marked a 14.3% sequential increase from Q1 2025 but a marginal 0.8% decline year-over-year. The figure narrowly exceeded analyst expectations, suggesting stable demand despite macroeconomic pressures in the semiconductor sector.
- EPS Miss: The reported EPS of $0.27 missed estimates by $0.04, reflecting potential margin pressures or higher operational costs. This shortfall appears to be the primary driver behind the negative market reaction.
- Outlook vs. Estimates: Management indicated that Q3 demand levels are expected to remain similar to Q2. Analysts currently project Q3 revenue at $203.5 million and EPS at $0.35, implying that the company’s guidance may be conservative compared to market expectations.
Market Reaction and Price Action
The immediate after-hours plunge of over 24% signals investor disappointment, likely tied to the EPS miss and uncertainty around near-term profitability. While revenue outperformed slightly, the market’s focus appears centered on earnings weakness, particularly in a sector where precision in guidance is critical.
Over the past month, FormFactor’s stock had been relatively flat, with minimal movement (+0.8%), suggesting that the earnings release was a key catalyst for the sharp downward correction. The extreme after-hours reaction may also reflect broader sector sentiment, as semiconductor stocks have faced volatility amid fluctuating chip demand.
Looking Ahead
For the full fiscal year 2025, analysts estimate revenue of $780.3 million and EPS of $1.27. The company’s ability to meet or exceed these projections will depend on whether it can stabilize margins and capitalize on sustained demand in probe card and systems segments.
For a deeper dive into FormFactor’s earnings history and future estimates, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.
