FormFactor (FORM)

The sleeper story is not the beat, it's that the self-funding promise for Farmers Branch quietly vanished the same quarter a $300M Teradyne check landed and capex got cut and pushed into 2027; nobody on the call asked why. The obvious headline, record revenue pushing toward $1 billion for the year, is real, but management itself just told you the binding constraint has flipped from demand to capacity, saying they're operating at the limits of what the current footprint can do and have squeezed that orange multiple times, with Q4's incremental guide explicitly smaller than Q3's step-up. Layer on a 56.5% gross margin that's really 52.5-53% underlying once you strip out tariff refunds, and an explicit refusal to quantify Farmers Branch's eventual margin accretion, called a false sense of precision, and this is a good quarter wrapped in slightly less transparency than usual. My view changes if next quarter's call reinstates specific self-funding language with real cash-flow-to-capex coverage detail, or if Teradyne's investment terms turn out to be dilutive equity rather than a clean strategic cash infusion.