What Happened?

Shares of semiconductor testing company FormFactor (NASDAQ: FORM) jumped 23.9% in the morning session after the company reported strong third-quarter 2025 results that surpassed market expectations and provided an optimistic outlook for the upcoming quarter. 

The semiconductor testing company announced adjusted earnings per share (EPS) of $0.33, handily beating the consensus estimate of $0.25. Additionally, FormFactor's revenue for the quarter came in at $202.7 million, ahead of the anticipated $200 million. More importantly, the company's forecast for the fourth quarter was significantly stronger than anticipated. Management guided for revenue of approximately $210 million and an adjusted EPS of $0.35, both well above analysts' expectations. This robust guidance suggested accelerating demand, fueling investor optimism about the company's near-term prospects.

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What Is The Market Telling Us

FormFactor’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. But moves this big are rare even for FormFactor and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 4.9% on the news that the semiconductor sector sold off after peer Texas Instruments provided a cautious forecast. Texas Instruments reported earnings with a slight miss on profit and warned of a slower-than-expected future. The news sent its shares down over 5% and dampened spirits across the semiconductor industry, which fell as a group. This negative sentiment surrounding a major player in the chip space appeared to weigh on FormFactor's stock as well, contributing to its decline.

FormFactor is up 33.4% since the beginning of the year, and at $59 per share, has set a new 52-week high. Investors who bought $1,000 worth of FormFactor’s shares 5 years ago would now be looking at an investment worth $2,081.

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