FormFactor (NASDAQ: FORM) stock surged 11.66% in Wednesday's trading session following the release of its impressive first-quarter 2025 financial results and optimistic second-quarter guidance. The semiconductor test equipment manufacturer's performance exceeded analyst expectations, demonstrating resilience in a challenging market environment.

The company reported adjusted earnings per share (EPS) of $0.23 for Q1, significantly outperforming the analyst consensus estimate of $0.19. This represents a 21.05% surprise to the upside and a 27.78% increase compared to the same period last year. Revenue for the quarter also surpassed expectations, reaching $171.4 million versus the analyst estimate of $170 million, translating to a modest 1.56% year-over-year increase.

Adding to the positive sentiment, FormFactor provided an upbeat outlook for the second quarter, forecasting revenue of $190 million, plus or minus $5 million. This guidance suggests continued growth and confidence in the company's near-term prospects. CEO Mike Slessor commented, "As expected, FormFactor reported sequentially lower first-quarter revenue and profitability due to anticipated reductions in demand for both DRAM probe cards and Systems." However, the strong Q2 outlook indicates a potential rebound in these areas.

Analysts have responded favorably to FormFactor's results, with the current average rating on the shares being "buy." The company's ability to exceed expectations in a challenging semiconductor market environment has bolstered investor confidence, contributing to the significant stock price increase observed on Wednesday.