US Stock Alert: FormFactor Plunges on October 30—Q4 Growth Slows, Lower Gross Margin Guidance, Target Price Cut

FormFactor October 30: Analysis of Sharp Decline

Keywords: Q4 growth slowdown, lower gross margin guidance, price target cuts

1. After the market closed on October 28, the company released its third quarter results for fiscal 2026. The midpoint of Q4 revenue guidance is $285 million, representing a quarter-over-quarter increase of only about 1.6% compared to Q3's $280.5 million. The midpoint of adjusted EPS guidance is $0.95, lower than Q3's $1.04. Gross margin guidance is about 54%, down from 56.5% in Q3, and existing factories are close to maximum capacity.

2. On October 29, Evercore lowered its price target from $150 to $140, while Needham maintained a hold rating. Following the earnings report, target price and rating adjustments contributed to the stock pullback.

3. On October 29, the company’s stock price already fell sharply due to near-flat Q4 guidance, lower gross margin guidance, and apparent factory capacity constraints. The pressure continued on October 30 after the financial report, with further declines driven by concerns over semiconductor equipment supply chain bottlenecks and cleanroom limitations.

(Disclaimer: This content is generated by AI technology based on publicly available information and is for reference only. It does not constitute investment advice.)