Zscaler Reports Q1 Earnings Exceeding Expectations, Year-over-Year Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 26 2025
0mins
Should l Buy FORM?
Source: NASDAQ.COM
Zscaler's Financial Performance: Zscaler reported first-quarter fiscal 2026 non-GAAP earnings of 96 cents per share, exceeding estimates by 12.94%, with revenues of $788.1 million, a 26% year-over-year increase, driven by strong demand for its Zero Trust Exchange platform and AI solutions.
Customer Growth and Future Guidance: The company added multiple large customers, increasing its annual recurring revenue (ARR) customer count to 698, and raised its fiscal 2026 revenue guidance to $3.282-$3.301 billion, reflecting a positive outlook.
Comparison with Competitors: Other companies in the tech sector, such as Cirrus Logic, FormFactor, and Marvell Technology, have also seen upward revisions in their earnings estimates, indicating a favorable trend among tech stocks.
AI Market Insights: The article discusses the potential for significant wealth creation in the next phase of the AI market, suggesting that early investors in emerging companies may benefit as the growth of established AI stocks begins to stabilize.
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Analyst Views on FORM
Wall Street analysts forecast FORM stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 137.210
Low
42.00
Averages
57.00
High
78.00
Current: 137.210
Low
42.00
Averages
57.00
High
78.00
About FORM
FormFactor, Inc. is a provider of essential test and measurement technologies along the full semiconductor product lifecycle, from characterization, modeling, reliability, and design de-bug to qualification and production test. The Company provides a range of high-performance probe cards, analytical probes, probe stations, thermal systems, and cryogenic systems to both semiconductor companies and scientific institutions. Its products provide electrical and optical information from a variety of semiconductor and electro-optical devices and integrated circuits from early research, through development, to high-volume production. It operates in two segments: Probe Cards and the Systems. The Probe Cards segment includes sales of its probe cards and analytical probes. The Systems segment includes sales of its probe stations, thermal systems and cryogenic systems. It also offers optical probing technology for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US-Iran Ceasefire Boosts Semiconductor Stocks
- Positive Market Reaction: The US-Iran ceasefire news alleviated fears of major disruptions to global tech supply chains, leading to a broad rally in semiconductor stocks, with Amkor (AMKR) rising 9%, reflecting optimistic sentiment towards the industry's outlook.
- Supply Chain Stability: The reopening of the Strait of Hormuz has made the logistics for raw materials and finished chips more predictable and cost-effective, reducing market concerns over scarcity premiums and encouraging investor buying interest.
- Improved Capital Expenditure Environment: The cooling of energy-driven inflation provides a more favorable backdrop for the massive capital expenditures required to build new fabrication plants, with chipmakers attracting strong buy-side interest across both logic and memory markets, indicating signs of industry recovery.
- Substantial Long-term Returns: Amkor's stock has surged 60.2% year-to-date, currently priced at $68.76 per share, marking a new 52-week high, and investors who purchased $1,000 worth of shares five years ago are now looking at an investment worth $2,938, showcasing its strong growth potential.
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GF Securities Initiates Buy Rating on FormFactor with $191 Price Target
- Market Share Advantage: Analysts at GF Securities highlighted that FormFactor holds over 70% market share in the HBM probe card market, which positions the company favorably in the semiconductor testing and measurement sector, likely driving future revenue growth.
- Revenue Growth Expectations: While FormFactor's HBM revenue is projected to grow by 10% in 2025, it lags behind overall HBM demand growth primarily due to yield improvements; analysts expect a re-acceleration in 2026, supported by strong HBM demand and ASP increases from the transition to HBM4.
- Acquisition-Driven Opportunities: The recent acquisition of Keystone Photonics by FormFactor is set to create broader opportunities in co-packaged optics, enhancing its competitive edge in the market, particularly in collaboration with Nvidia.
- Collaboration with Major Clients: FormFactor is engaging with all major hyperscalers and has secured the Google TPU A5592 order, indicating strong performance in the ASIC market, which is expected to contribute significantly to revenue growth.
See More
FormFactor Director Sells Shares and Announces Retirement
- Director Share Sale: FormFactor's Director Kevin J. Brewer sold 3,000 shares on February 11, 2026, for approximately $289,000, based on an SEC Form 4 filing at a price of $96.20, indicating a profit-taking move by board members.
- Board Restructuring: On February 18, 2026, the company announced Brewer's retirement later this year, leading to a board reshuffle; despite the high level of share sales, investors need not worry as the stock has performed well historically.
- Strong Market Performance: As of February 2026, FormFactor's stock is experiencing its highest annual gains since 2023, reflecting the ongoing growth potential in the semiconductor market, which is critical for the company's success.
- Long-Term Growth Outlook: As a global provider of semiconductor test and measurement technologies, FormFactor's probe cards are essential for measuring chip performance, positioning the company for long-term growth amid increasing market demand.
See More
FormFactor Director Kevin J. Brewer Sells 3,000 Shares
- Transaction Overview: On February 11, 2026, Kevin J. Brewer directly sold 3,000 common shares for approximately $289,000, reducing his direct holdings to 8,105 shares with a post-transaction value of $779,000, indicating a strategic response to market conditions.
- Impact on Holdings: This sale accounted for 27.01% of Brewer's direct holdings, marking his only open-market transaction in the past two years, which may suggest a cautious outlook on future market trends.
- Company Background: FormFactor is a leading global provider of semiconductor test and measurement technologies, boasting a market capitalization of $7.33 billion and a revenue of $784.99 million, with a remarkable 151.62% increase in stock price over the past year, reflecting strong market performance.
- Investor Outlook: Despite the recent share sales by board members, investors need not be overly concerned, as the company's long-term growth potential in the semiconductor market remains robust, with its core products being essential for tech manufacturers, likely continuing to drive stock price increases.
See More
FormFactor Director Sells 3,000 Shares Ahead of Retirement Announcement
- Transaction Overview: Kevin J. Brewer, a director at FormFactor, sold 3,000 shares on February 11, 2026, for approximately $289,000, reducing his direct holdings to 8,105 shares valued at $779,000 post-transaction.
- Impact on Holdings: This sale accounted for 27.01% of Brewer's direct holdings, marking his only open-market sale in the past two years, which may indicate a cautious approach to current market conditions.
- Company Background: FormFactor is a global leader in semiconductor test and measurement technologies, serving clients such as semiconductor firms and tech manufacturers, with a market capitalization of $7.33 billion and a TTM revenue of $784.99 million as of 2026.
- Investor Considerations: Despite the recent share sales by Brewer and other directors, the stock's impressive 151.62% increase over the past year suggests that investors need not be overly concerned, but should focus on the company's long-term growth potential in the expanding semiconductor market.
See More
FormFactor Director Kevin J. Brewer Sells 3,000 Shares
- Transaction Overview: Kevin J. Brewer sold 3,000 shares on February 11, 2026, for approximately $289,000, retaining 8,105 shares post-transaction valued at about $779,000, indicating his continued confidence in the company's future.
- Impact on Holdings: The sale represented 27.01% of Brewer's direct common stock holdings, and despite the sale, he still owns over 8,000 shares, suggesting he is not in a hurry to liquidate his position.
- Historical Trading Comparison: This is the only open-market sale disclosed by Brewer in the past two years, with prior filings limited to administrative events, highlighting the uniqueness of this transaction.
- Market Context Analysis: FormFactor shares delivered a total return of 174.6% over the past year and hit a 52-week high of $100.01 on February 13, 2026, reflecting strong market performance driven by surging demand in artificial intelligence, making this a strategic liquidity event.
See More
US-Iran Ceasefire Boosts Semiconductor Stocks
- Positive Market Reaction: The US-Iran ceasefire news alleviated fears of major disruptions to global tech supply chains, leading to a broad rally in semiconductor stocks, with Amkor (AMKR) rising 9%, reflecting optimistic sentiment towards the industry's outlook.
- Supply Chain Stability: The reopening of the Strait of Hormuz has made the logistics for raw materials and finished chips more predictable and cost-effective, reducing market concerns over scarcity premiums and encouraging investor buying interest.
- Improved Capital Expenditure Environment: The cooling of energy-driven inflation provides a more favorable backdrop for the massive capital expenditures required to build new fabrication plants, with chipmakers attracting strong buy-side interest across both logic and memory markets, indicating signs of industry recovery.
- Substantial Long-term Returns: Amkor's stock has surged 60.2% year-to-date, currently priced at $68.76 per share, marking a new 52-week high, and investors who purchased $1,000 worth of shares five years ago are now looking at an investment worth $2,938, showcasing its strong growth potential.
See More
GF Securities Initiates Buy Rating on FormFactor with $191 Price Target
- Market Share Advantage: Analysts at GF Securities highlighted that FormFactor holds over 70% market share in the HBM probe card market, which positions the company favorably in the semiconductor testing and measurement sector, likely driving future revenue growth.
- Revenue Growth Expectations: While FormFactor's HBM revenue is projected to grow by 10% in 2025, it lags behind overall HBM demand growth primarily due to yield improvements; analysts expect a re-acceleration in 2026, supported by strong HBM demand and ASP increases from the transition to HBM4.
- Acquisition-Driven Opportunities: The recent acquisition of Keystone Photonics by FormFactor is set to create broader opportunities in co-packaged optics, enhancing its competitive edge in the market, particularly in collaboration with Nvidia.
- Collaboration with Major Clients: FormFactor is engaging with all major hyperscalers and has secured the Google TPU A5592 order, indicating strong performance in the ASIC market, which is expected to contribute significantly to revenue growth.
See More
FormFactor Director Sells Shares and Announces Retirement
- Director Share Sale: FormFactor's Director Kevin J. Brewer sold 3,000 shares on February 11, 2026, for approximately $289,000, based on an SEC Form 4 filing at a price of $96.20, indicating a profit-taking move by board members.
- Board Restructuring: On February 18, 2026, the company announced Brewer's retirement later this year, leading to a board reshuffle; despite the high level of share sales, investors need not worry as the stock has performed well historically.
- Strong Market Performance: As of February 2026, FormFactor's stock is experiencing its highest annual gains since 2023, reflecting the ongoing growth potential in the semiconductor market, which is critical for the company's success.
- Long-Term Growth Outlook: As a global provider of semiconductor test and measurement technologies, FormFactor's probe cards are essential for measuring chip performance, positioning the company for long-term growth amid increasing market demand.
See More
FormFactor Director Kevin J. Brewer Sells 3,000 Shares
- Transaction Overview: On February 11, 2026, Kevin J. Brewer directly sold 3,000 common shares for approximately $289,000, reducing his direct holdings to 8,105 shares with a post-transaction value of $779,000, indicating a strategic response to market conditions.
- Impact on Holdings: This sale accounted for 27.01% of Brewer's direct holdings, marking his only open-market transaction in the past two years, which may suggest a cautious outlook on future market trends.
- Company Background: FormFactor is a leading global provider of semiconductor test and measurement technologies, boasting a market capitalization of $7.33 billion and a revenue of $784.99 million, with a remarkable 151.62% increase in stock price over the past year, reflecting strong market performance.
- Investor Outlook: Despite the recent share sales by board members, investors need not be overly concerned, as the company's long-term growth potential in the semiconductor market remains robust, with its core products being essential for tech manufacturers, likely continuing to drive stock price increases.
See More
FormFactor Director Sells 3,000 Shares Ahead of Retirement Announcement
- Transaction Overview: Kevin J. Brewer, a director at FormFactor, sold 3,000 shares on February 11, 2026, for approximately $289,000, reducing his direct holdings to 8,105 shares valued at $779,000 post-transaction.
- Impact on Holdings: This sale accounted for 27.01% of Brewer's direct holdings, marking his only open-market sale in the past two years, which may indicate a cautious approach to current market conditions.
- Company Background: FormFactor is a global leader in semiconductor test and measurement technologies, serving clients such as semiconductor firms and tech manufacturers, with a market capitalization of $7.33 billion and a TTM revenue of $784.99 million as of 2026.
- Investor Considerations: Despite the recent share sales by Brewer and other directors, the stock's impressive 151.62% increase over the past year suggests that investors need not be overly concerned, but should focus on the company's long-term growth potential in the expanding semiconductor market.
See More
FormFactor Director Kevin J. Brewer Sells 3,000 Shares
- Transaction Overview: Kevin J. Brewer sold 3,000 shares on February 11, 2026, for approximately $289,000, retaining 8,105 shares post-transaction valued at about $779,000, indicating his continued confidence in the company's future.
- Impact on Holdings: The sale represented 27.01% of Brewer's direct common stock holdings, and despite the sale, he still owns over 8,000 shares, suggesting he is not in a hurry to liquidate his position.
- Historical Trading Comparison: This is the only open-market sale disclosed by Brewer in the past two years, with prior filings limited to administrative events, highlighting the uniqueness of this transaction.
- Market Context Analysis: FormFactor shares delivered a total return of 174.6% over the past year and hit a 52-week high of $100.01 on February 13, 2026, reflecting strong market performance driven by surging demand in artificial intelligence, making this a strategic liquidity event.
See More
