Shares of FormFactor (FORM) surged 11.66% on Wednesday following the company's release of its 2025 first-quarter results, which significantly exceeded analyst expectations. The semiconductor testing equipment manufacturer reported strong earnings and provided an optimistic outlook for the second quarter, instilling confidence in investors.

FormFactor announced adjusted earnings per share of $0.23 for Q1, surpassing the analyst consensus estimate of $0.19 by 21.05%. This represents a notable improvement from the $0.18 per share reported in the same period last year. Revenue for the quarter came in at $171.36 million, beating the analyst estimate of $169.98 million and showing a 1.56% increase year-over-year. The company's adjusted net income of $18 million also outperformed the IBES estimate of $14.8 million.

Adding to the positive sentiment, FormFactor provided an upbeat outlook for the second quarter. The company expects Q2 revenue to reach $190 million, plus or minus $5 million, indicating continued growth. This guidance suggests FormFactor is successfully navigating the current market conditions in the semiconductor industry. CEO Mike Slessor commented on the results, stating, "As expected, FormFactor reported sequentially lower first-quarter revenue and profitability due to anticipated reductions in demand for both DRAM probe cards and Systems." Despite these challenges, the strong performance and optimistic guidance have clearly resonated with investors, driving the significant stock price increase.