Photronics Reports Second Quarter 2026 Results
Rhea-AI Summary
Photronics (NASDAQ:PLAB) reported Q2 FY2026 revenue of $209.9 million, down 0.5% year-over-year and 6.7% sequentially. GAAP net income attributable to shareholders was $31.4 million ($0.54 diluted EPS); non-GAAP net income was $24.9 million ($0.42 diluted EPS).
IC revenue was $147.5 million (down 5% YoY, 11% sequentially), while FPD revenue was $62.4 million (up 13% YoY, 4% sequentially). Quarter-end cash, equivalents and short-term investments totaled $637.7 million, including $477.3 million from joint ventures. Operating cash flow was $47.0 million and capital expenditures were $45.8 million.
For Q3 FY2026, guidance is revenue of $207–$215 million, operating margin of 18%–20%, and non-GAAP diluted EPS of $0.39–$0.45.
AI-generated analysis. Not financial advice.
Positive
- Q2 2026 GAAP net income rose to $31.4 million from $8.9 million year-over-year
- Q2 2026 non-GAAP diluted EPS increased to $0.42 from $0.40 year-over-year
- FPD revenue $62.4 million, up 13% year-over-year and 4% sequentially
- Strong liquidity with $637.7 million in cash, equivalents and short-term investments
- Q2 2026 operating cash flow of $47.0 million nearly covered $45.8 million capex
Negative
- Total Q2 2026 revenue $209.9 million, down 0.5% year-over-year
- Sequential revenue declined 6.7% versus Q1 2026
- IC revenue $147.5 million, down 5% year-over-year and 11% sequentially
- Q2 2026 GAAP diluted EPS fell sequentially to $0.54 from $0.74
- Q2 2026 non-GAAP diluted EPS decreased sequentially to $0.42 from $0.61
News Market Reaction – PLAB
On the day this news was published, PLAB declined 36.42%, reflecting a significant negative market reaction. Argus tracked a trough of -43.2% from its starting point during tracking. Our momentum scanner triggered 108 alerts that day, indicating very high trading interest and price volatility. This price movement removed approximately $1.81B from the company's valuation, bringing the market cap to $3.16B at that time. Trading volume was exceptionally heavy at 12.4x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PLAB traded near its 52-week high while peers were mixed: UCTT +0.52%, ACMR +2.43%, COHU +6.08%, but VECO -5.40% and DQ -2.63%, suggesting stock‑specific drivers over a unified sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Aug 27 | Q3 2025 earnings | Positive | +7.6% | Q3 revenue near $210M, solid earnings, higher cash and buyback expansion. |
| May 28 | Q2 2025 earnings | Negative | -15.6% | Q2 revenue and EPS down with a CEO transition announced alongside results. |
| Feb 26 | Q1 2025 earnings | Neutral | +2.0% | Q1 revenue slightly down but GAAP net income higher and cash position strong. |
| Dec 11 | FY 2024 & Q4 | Neutral | +10.8% | Full-year revenue dipped, earnings and cash flow resilient with strong cash balance. |
Earnings releases have typically produced modestly positive or volatile moves, with an average absolute move of about 1.21% and no clear pattern of negative reactions.
Over the past few earnings cycles, Photronics has reported revenue around the $210M level with a stable but evolving IC/FPD mix. Q3 FY2025 revenue was $210.4M, Q1 FY2025 revenue was $212.1M, and FY2024 revenue totaled $866.9M. Cash balances have remained high (around $575–642M), while guidance has consistently framed revenue in the low‑$200M range. Today’s Q2 FY2026 results and outlook continue that pattern of steady, cash‑rich operations.
Historical Comparison
Past earnings releases for PLAB have driven relatively modest moves averaging 1.21%, typically skewing positive when cash strength and stable revenue near $210M were emphasized.
Earnings history shows recurring revenue around $210M, a mix shift with resilient FPD growth, and consistently high cash balances supporting ongoing investment and capital returns.
Market Pulse Summary
The stock dropped -36.4% in the session following this news. A negative reaction despite manageable year-over-year revenue pressure would fit prior episodes where leadership or outlook changes weighed on sentiment. While cash of $637.7M and growing FPD revenue support the long-term story, recent insider net selling and near-term design delays could amplify downside if investors focus more on IC weakness and guidance ranges than on balance sheet strength.
Key Terms
gaap financial
non-gaap financial
operating margin financial
capital expenditures financial
AI-generated analysis. Not financial advice.
BROOKFIELD, Conn., May 28, 2026 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its second quarter of fiscal year 2026 ended May 3, 2026.
Commenting on the second quarter performance, Chairman and CEO George Macricostas said, “Photomask market dynamics reflect a mix of supportive long-term drivers and several temporary headwinds. In the near term, certain design releases have been delayed due to elevated fab utilization rates, which are extending new product launch timelines, memory supply constraints and related cost pressures for OEMs, and geopolitical uncertainty. The underlying long-term demand environment remains strong as we advance our investments in the U.S. and Korea to strengthen our position at the high end of the market over the coming years.”
Second Quarter Fiscal 2026 Results
- Revenue was
$209.9 million , down0.5% year-over-year and down6.7% sequentially. - GAAP Net income attributable to Photronics, Inc. shareholders was
$31.4 million , or$0.54 per diluted share, compared with$8.9 million , or$0.15 per diluted share, in the second quarter of 2025 and$42.9 million , or$0.74 per diluted share, in the first quarter of 2026. - Non-GAAP Net income attributable to Photronics, Inc. shareholders was
$24.9 million , or$0.42 per diluted share, compared with$24.3 million , or$0.40 per diluted share in the second quarter of 2025 and$35.7 million , or$0.61 per diluted share, in the first quarter of 2026. - IC revenue was
$147.5 million , a decrease of5% year-over-year and a decrease of11% sequentially. - FPD revenue was
$62.4 million , an increase of13% year-over-year and an increase of4% sequentially. - Cash, cash equivalents and short-term investments at the end of the quarter were
$637.7 million , of which$477.3 million was associated with our Joint Ventures, of which we own50.01% . - Cash generated from operating activities was
$47.0 million , and cash invested in organic growth through capital expenditures was$45.8 million .
Third Quarter Fiscal 2026 Guidance
For the third quarter of fiscal 2026, Photronics expects:
- Revenue to be between
$207 million and$215 million , - Operating margin to be between
18% and20% , and - Non-GAAP diluted EPS attributable to Photronics, Inc. shareholders to be between
$0.39 and$0.45 per share.
Earnings Conference Call and Webcast
An earnings conference call and webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on May 28, 2026. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click Conference Registration. It is suggested that participants register fifteen minutes prior to the call's scheduled start time.
About Photronics
Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks, which are high precision photographic quartz or glass plates that contain microscopic images of electronic circuits. Photomasks are a key element in the manufacture of ICs and FPDs and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.
Forward-Looking Statements
Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially. Please refer to Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.
Non-GAAP Financial Measures
Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statements of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.
Totals presented may not sum due to rounding.
For Further Information:
Ted Moreau
VP, Investor Relations
tmoreau@photronics.com
| PHOTRONICS, INC. | ||||||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| May 3, | February 1, | May 4, | May 3, | May 4, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
| Revenue | $ | 209,940 | $ | 225,066 | $ | 210,992 | $ | 435,006 | $ | 423,130 | ||||||||||
| Cost of goods sold | 144,183 | 146,364 | 133,086 | 290,547 | 269,689 | |||||||||||||||
| Gross Profit | 65,757 | 78,702 | 77,906 | 144,459 | 153,441 | |||||||||||||||
| Gross margin % | 31.3 | % | 35.0 | % | 36.9 | % | 33.2 | % | 36.3 | % | ||||||||||
| Operating Expenses: | ||||||||||||||||||||
| Selling, general and administrative | 20,756 | 21,311 | 18,099 | 42,067 | 37,201 | |||||||||||||||
| Research and development | 2,822 | 2,588 | 4,090 | 5,410 | 8,346 | |||||||||||||||
| Total Operating Expenses | 23,578 | 23,899 | 22,189 | 47,477 | 45,547 | |||||||||||||||
| Other operating Income | – | 56 | – | 56 | – | |||||||||||||||
| Operating Income | 42,179 | 54,859 | 55,717 | 97,038 | 107,894 | |||||||||||||||
| Operating Margin % | 20.1 | % | 24.4 | % | 26.4 | % | 22.3 | % | 25.5 | % | ||||||||||
| Other income (expense), net | 11,677 | 19,673 | (25,786 | ) | 31,350 | (805 | ) | |||||||||||||
| Income Before Income Tax Provision | 53,856 | 74,532 | 29,931 | 128,388 | 107,089 | |||||||||||||||
| Income tax provision | 10,606 | 14,355 | 5,714 | 24,961 | 24,615 | |||||||||||||||
| Net Income | 43,250 | 60,177 | 24,217 | 103,427 | 82,474 | |||||||||||||||
| Net income attributable to noncontrolling interests | 11,821 | 17,238 | 15,356 | 29,059 | 30,762 | |||||||||||||||
| Net income attributable to Photronics, Inc. shareholders | $ | 31,429 | $ | 42,939 | $ | 8,861 | $ | 74,368 | $ | 51,712 | ||||||||||
| Earnings per share attributed to Photronics, Inc. shareholders: | ||||||||||||||||||||
| Basic | $ | 0.54 | $ | 0.74 | $ | 0.15 | $ | 1.28 | $ | 0.84 | ||||||||||
| Diluted | $ | 0.54 | $ | 0.74 | $ | 0.15 | $ | 1.27 | $ | 0.84 | ||||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 58,123 | 57,794 | 60,793 | 57,959 | 61,443 | |||||||||||||||
| Diluted | 58,745 | 58,390 | 60,974 | 58,568 | 61,817 | |||||||||||||||
| PHOTRONICS, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| May 3, | October 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 511,490 | $ | 492,256 | ||||
| Short-term investments | 126,177 | 95,909 | ||||||
| Accounts receivable | 188,951 | 195,921 | ||||||
| Inventories | 67,826 | 61,767 | ||||||
| Other current assets | 49,482 | 44,199 | ||||||
| Total current assets | 943,926 | 890,052 | ||||||
| Property, plant and equipment, net | 927,936 | 854,436 | ||||||
| Other assets | 58,964 | 60,046 | ||||||
| Total assets | $ | 1,930,826 | $ | 1,804,534 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 11 | $ | 11 | ||||
| Accounts payable and accrued liabilities | 186,954 | 165,862 | ||||||
| Total current liabilities | 186,965 | 165,873 | ||||||
| Long-term debt | 3,853 | 13 | ||||||
| Other liabilities | 46,547 | 41,341 | ||||||
| Equity: | ||||||||
| Photronics, Inc. shareholders' equity | 1,241,250 | 1,173,589 | ||||||
| Noncontrolling interests | 452,211 | 423,718 | ||||||
| Total equity | 1,693,461 | 1,597,307 | ||||||
| Total liabilities and equity | $ | 1,930,826 | $ | 1,804,534 | ||||
| PHOTRONICS, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| May 3, | May 4, | |||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 103,427 | $ | 82,474 | ||||
| Adjustments to reconcile net income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation and amortization | 39,812 | 40,386 | ||||||
| Share-based compensation | 6,576 | 6,710 | ||||||
| Changes in operating assets, liabilities and other | (5,531 | ) | (19,651 | ) | ||||
| Net cash provided by operating activities | 144,284 | 109,919 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (93,436 | ) | (95,749 | ) | ||||
| Purchases of short-term investments | (105,831 | ) | (27,689 | ) | ||||
| Proceeds from maturities of short-term investments | 71,789 | 41,482 | ||||||
| Proceeds from sales of short-term investments | 7,093 | – | ||||||
| Government incentives | 2,567 | 1,166 | ||||||
| Other | (72 | ) | (57 | ) | ||||
| Net cash used in investing activities | (117,890 | ) | (80,847 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments of debt | (5 | ) | (17,966 | ) | ||||
| Common stock repurchases | – | (76,682 | ) | |||||
| Proceeds from share-based arrangements | 1,216 | 1,583 | ||||||
| Net settlements of restricted stock awards | (1,632 | ) | (2,007 | ) | ||||
| Net cash used in financing activities | (421 | ) | (95,072 | ) | ||||
| (6,722 | ) | (1,697 | ) | |||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 19,251 | (67,697 | ) | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 495,113 | 601,243 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | 514,364 | 533,546 | ||||||
| Less: Ending restricted cash | 2,874 | 2,838 | ||||||
| Cash and cash equivalents at end of period | $ | 511,490 | $ | 530,708 | ||||
| PHOTRONICS, INC. | ||||||||||||
| Reconciliation of U.S. GAAP to non-GAAP: Net income and diluted earnings per share attributable to Photronics, Inc. shareholders | ||||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months ended | ||||||||||||
| May 3, | February 1, | May 4, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| U.S. GAAP net income attributable to Photronics, Inc. shareholders | $ | 31,429 | $ | 42,939 | $ | 8,861 | ||||||
| FX (gain) loss | (7,869 | ) | (12,865 | ) | 31,111 | |||||||
| Estimated tax effects of FX (gain) loss | 629 | 2,553 | (8,337 | ) | ||||||||
| Estimated noncontrolling interest effects of above | 739 | 3,032 | (7,376 | ) | ||||||||
| Non-GAAP net income attributable to Photronics, Inc. shareholders | $ | 24,928 | $ | 35,659 | $ | 24,259 | ||||||
| Weighted-average number of common shares outstanding – Diluted | 58,745 | 58,390 | 60,974 | |||||||||
| U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders | $ | 0.54 | $ | 0.74 | $ | 0.15 | ||||||
| Effects of non-GAAP adjustments above | (0.12 | ) | (0.13 | ) | 0.25 | |||||||
| Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders | $ | 0.42 | $ | 0.61 | $ | 0.40 | ||||||
