Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $1.3 billion | Up 70% year-over-year |
| Non-GAAP EPS | $2.29 | Up over 150% year-over-year |
| Semi Test Revenue | $1 billion | Up 77% from Q3 2025 |
| Robotics Revenue | $96 million | Up 28% year-over-year |
| Product Test Revenue | $138 million | Up 56% year-over-year |
| Gross Margin | 59.1% | Up 60 basis points year-over-year |
Guidance and outlook
- Q4 revenue is expected in the range of $1.25 billion to $1.35 billion.
- Q4 non-GAAP EPS is expected in the range of $1.95 to $2.25.
- Q4 gross margins are expected to be in the range of 57.5% to 58.5%.
- Q4 operating expenses are expected to run at 28.5% to 29.5% of sales.
- Q4 non-GAAP operating profit rate is expected to be between 28% and 30%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record results, strong AI-driven demand across all segments, and raised guidance for the fourth quarter. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Memory growth trajectory
Asked: An analyst asked about the growth outlook for HBM, DRAM, and NAND into 2027.
Answer: Management expects significant year-on-year growth for the memory business, with HBM being the primary driver.
Gross margin outlook
Asked: An analyst asked about the impact of Product Test growth on gross margins.
Answer: Management noted that Product Test is accretive to the portfolio and expects gross margins to remain healthy despite cost pressures and capacity expansion.
Inventory build
Asked: An analyst asked about the reason for the $200 million inventory increase.
Answer: Management explained the increase is due to preparing for 2027 growth and managing longer lead times for components.
Robotics growth
Asked: An analyst asked about the visibility and growth drivers for the Robotics business.
Answer: Management stated the pipeline is expanding and expects robust growth in 2027, though it remains probabilistic compared to the Semiconductor Test business.
What to watch before the next call
- The timing of compute order ramps in 2027.
- The progress of the FormFactor investment, expected to close in the fourth quarter.
- The pace of adoption for physical AI in the robotics segment.
