Operational Improvements + Rev Growth Pathway to $5 in Earnings Power

Research evidence excerpt

Operational Improvements + Rev Growth Pathway to $5 in Earnings Power

Semiconductor Capital Equipment

FormFactor

TD SECURITIES (USA) LLC COMPANY UPDATE

May 12, 2026

Price: $151.40 (05/11/2026) Operational Improvements + Rev Growth

Price Target: $150.00 Pathway to $5 in Earnings Power

HOLD (2)

ESG SCORE: 59/100

Krish Sankar THE TD COWEN INSIGHT

415 646 7372

FormFactor hosted an informative analyst day when management provided a new long-

krish.sankar@tdsecurities.com

term model of $1.6B revenues, 55% GM, and $5 EPS. Execution remains in focus on ramping

Eddy Orabi volumes at the Farmers Branch facility (expected FY27), future HBM design starts and growing

415 646 7371 AI Datacenter opportunity in custom ASICs, GPU test, networking, and future CPO.

eddy.orabi@tdsecurities.com

Steven Chin CY30 Target: FORM outlined a path to scale revenue >$1.6B as it pursues new SAM in GPU,

415 646 7374 HBM, adv. pkg., and co-packaged optics test which should allow a framework for $5 EPS by

steven.chin@tdsecurities.com CY30 up from the prior LT rev./GMs/EPS targets of $850M/47%/$2 respectively. Within the

Robert Mertens, CFA framework new opportunities in HBM, CPO, GPU and ASICs add additional vectors to topline

646 562 1338 growth and, combined with operational efficiencies help propel GM expansion (target 70%

robert.mertens@tdsecurities.com GM fall through on top line growth). Probe card mix to be less impactful as the business scales

towards $1.6B. Gross margin improvement is a factor of (1) +600bps from volumes (2) +500bps

Key Data

on managing OpEx (3) +400bps from "innovations" including new SAM opp., Farmers Branch,

Symbol NASDAQ: FORM

Systems mix, etc.

Beta: 1.32

52-Week Range: $155.08-$27.62 FormFactor CY30 Long Term Target Model

Market Cap: $11.8B

Net Debt (MM): $(272.3)