FormFactor (FORM) stock is soaring 16.39% in pre-market trading on Thursday, building on its after-hours gains from the previous day. The significant uptick comes after the semiconductor test and measurement supplier released its impressive third-quarter financial results, which substantially exceeded analyst expectations across multiple metrics.

The company reported Q3 revenue of $202.7 million, surpassing the IBES estimate of $200 million. FormFactor's adjusted net income reached $25.7 million, significantly beating the expected $19.3 million. The adjusted earnings per share came in at $0.33, well above the analysts' consensus of $0.25. Operational efficiency was evident with a gross margin of 39.8% and a robust free cash flow of $19.7 million.

FormFactor's CEO highlighted that the company's third-quarter revenue, gross margin, and earnings per share all exceeded both second-quarter results and the midpoint of their outlook range. Notably, DRAM probe card sales recorded double-digit sequential growth, reaching a new record primarily due to increased demand for High Bandwidth Memory (HBM) products. The strong performance in this segment, coupled with the overall impressive financial results, has bolstered investor confidence in FormFactor's position within the semiconductor testing market. Furthermore, the company's optimistic outlook for even stronger results in the fourth quarter is likely contributing to the pre-market surge, as investors anticipate continued growth and improved performance in the coming months.