Photronics (PLAB) boosts Q2 2026 profit and issues Q3 revenue, EPS outlook

Rhea-AI Filing Summary

Photronics, Inc. reported solid second quarter fiscal 2026 results with revenue of $209.9 million, roughly flat year over year, while profitability improved. Gross margin was 31.3% and operating margin 20.1%, reflecting some mix-driven compression versus prior periods.

Net income attributable to Photronics shareholders rose to $31.4 million, or $0.54 per diluted share, compared with $0.15 a year earlier. Non-GAAP diluted EPS was $0.42. The company ended the quarter with $637.7 million in cash, cash equivalents and short-term investments and minimal debt of $3.9 million.

Operating cash flow for the first six months of fiscal 2026 reached $144.3 million, supporting significant capital expenditures of $93.4 million in that period as Photronics invests in U.S. and South Korea capacity, including an 8nm node extension. For third quarter fiscal 2026, management guided revenue to $207–$215 million and non-GAAP diluted EPS to $0.39–$0.45, assuming continued temporary delays in some semiconductor design starts but ongoing long-term demand drivers.

Positive

• Sharp earnings acceleration: Net income attributable to Photronics shareholders rose to $31.4 million with diluted EPS of $0.54, up from $0.15 a year earlier, indicating significantly improved profitability on broadly stable revenue.
• Strong balance sheet and cash generation: Cash, cash equivalents and short-term investments reached $637.7 million against only $3.9 million of debt, supported by $144.3 million in first-half operating cash flow while still funding heavy growth capex.

Negative

• None.

Insights

Semiconductor capital cycle analyst

Profitability and cash generation strengthen despite modest revenue pressure.

Photronics delivered Q2 fiscal 2026 revenue of $209.9M, essentially flat year over year, but expanded net income attributable to shareholders to $31.4M from $8.9M. Gross margin of 31.3% and operating margin of 20.1% indicate some mix and utilization headwinds versus prior quarters.

Cash generation was robust: first-half operating cash flow reached $144.3M, funding heavy capital expenditures of $93.4M while cash, cash equivalents and short-term investments climbed to $637.7M. Debt remained very low at $3.9M, giving the company flexibility to continue its U.S. and South Korea expansion plans.

Management’s Q3 fiscal 2026 guidance for revenue of $207–$215M and non-GAAP diluted EPS of $0.39–$0.45 incorporates delayed design starts tied to tight memory conditions and macro factors. Execution on node migration investments, including the Korea 8nm capability and the Allen, Texas facility ramp in FQ3 2026, will be key for sustaining margins as industry conditions evolve.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Revenue: $209.9M Q2 2026 Net income attributable to shareholders: $31.4M Q2 2026 GAAP diluted EPS: $0.54/share +5 more

8 metrics

Q2 2026 Revenue $209.9M Three months ended May 3, 2026

Q2 2026 Net income attributable to shareholders $31.4M Three months ended May 3, 2026

Q2 2026 GAAP diluted EPS $0.54/share Three months ended May 3, 2026

Q2 2026 non-GAAP diluted EPS $0.42/share Three months ended May 3, 2026

Cash and short-term investments $637.7M As of May 3, 2026

Total debt $3.9M As of May 3, 2026

First-half 2026 operating cash flow $144.3M Six months ended May 3, 2026

Q3 2026 revenue guidance $207–$215M Management outlook for third quarter fiscal 2026

Key Terms

non-GAAP, photomasks, Operating margin, Capital Expenditures, +2 more

6 terms

non-GAAP financial

"Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

photomasks technical

"Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks"

Operating margin financial

"Operating Margin % | | | 20.1 | %"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

Capital Expenditures financial

"Capital Expenditures 45.8 47.6 60.5"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

regionalization market

"U.S. and Asia investments align with industry regionalization trends, and diversify geographic footprint"

node migration technical

"Both High-End and Mainstream expected to continue experiencing node migration to more advanced IC geometries driving ASPs"

Earnings Snapshot

Revenue: $209.9M · Guidance included

Q2 2026

Revenue $209.9M

Net income attributable to shareholders $31.4M

GAAP diluted EPS $0.54

Non-GAAP diluted EPS $0.42

Guidance

For Q3 fiscal 2026, Photronics expects revenue of $207–$215 million and non-GAAP diluted EPS of $0.39–$0.45.

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Understanding 8-K Material Events →

false000081013600008101362026-05-282026-05-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) May 28, 2026

PHOTRONICS, INC.

(Exact name of registrant as specified in its charter)

Connecticut	0-15451	06-0854886
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

15 Secor Road, Brookfield, CT		06804
(Address of principal executive offices)		(Zip Code)

Registrant’s Telephone Number, including area code (203) 775-9000

(Former name or former address, if changed since last report)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
COMMON STOCK, $0.01 par value per share	PLAB	NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On May 28, 2026, Photronics, Inc. (the “Company”) issued a press release reporting second quarter fiscal 2026 financial results.

On May 28, 2026, the Company will conduct a conference call with respect to its financial results and other matters during which it will also disclose a slide presentation.

A copy of the press release reporting the second quarter fiscal 2026 earnings is furnished as Exhibit 99.1 to this report and a copy of the slide presentation is furnished as Exhibit 99.2 to this report. The information contained in this Item 2.02 and the attached Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits
99.1	Press Release dated May 28, 2026.
99.2	Photronics Q2 2026 Financial Results Conference Call May 28, 2026 slides.
104	Cover Page Interactive Data File (embedded within the Inline XBLR document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PHOTRONICS, INC.
	(Registrant)
	By:	/s/ Christopher J. Lutzo

	Name:	Christopher J. Lutzo
	Title:	Vice President,
		General Counsel and Secretary
Date:  May 28, 2026

Exhibit 99.1

Photronics Reports Second Quarter 2026 Results

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, down 0.5% year-over-year and down 6.7% 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 of 5% year-over-year and a decrease of 11% sequentially.

• FPD revenue was $62.4 million, an increase of 13% year-over-year and an increase of 4% 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 own 50.01%.

• 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% and 20%, 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, 2026				October 31, 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, 2026				May 4, 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	)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash			(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, 2026				February 1, 2026				May 4, 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

Exhibit 99.2

 May 2026  Investor Presentation 

 Safe Harbor Statement  This presentation and some of our comments during this presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain risks and uncertainties. We refer you to the 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 the actual results for the Company to differ materially from those contained in our projections or forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee the accuracy of any forecasts or estimates, and we are not obligated to update any forward-looking statements if our expectations change.  2 

 Corporate Overview 

 Europe  4%  Taiwan  32%  South  Korea  19%  US  18%  Photronics Overview (Nasdaq: PLAB)  $861M  Revenue  $197M  Operating Income  $283M  Operating Cash Flow  $3.04B  Market Cap  5/12/2026  ~1,900  Employees  ~675  Customers  1969  Founded  A Global Merchant Market Leader of Photomasks used in Lithographic Imaging for Semiconductor and Flat Panel Display production  Revenue By Geographic Origin  Revenue By Technology  All data reflects Trailing Twelve Month figures as of 5/3/26 unless otherwise noted  Totals may differ due to rounding  4  Mainstream  48%  High-End  52%   Revenue By Product Line  Flat Panel Display  28%  Integrated Circuits  72%  China IC  15%  China FPD  12% 

 Photomasks: Critical Enabler for IC and FPD Manufacturing  Integrated Circuit (IC) photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits.  Photomasks are glass substrates used in lithographic systems to transfer the pattern of semiconductor and flat panel display designs  Light Source  Photomask  Reduction Lens  Wafer  Stage  5  Flat Panel Display (FPD) photomasksare used in the fabrication of flat screen televisions, PC monitors, tablets, mobile devices and other flat panel displays.  Exposure Process used to Create a TFT Circuit Pattern  TFT Substrate – Thin-Film Transistor substrate 

 IC: New Chip Designs Drive Photomask Demand  Photomasks are the foundation of wafer manufacturing and critical to the semiconductor manufacturing process   A global merchant leader in mask production  Advances in semiconductor chip designs drive Photronics revenue  6  Source: Semi’s 2024 Photomask Characterization Study, August 2025  Source: TechInsights “McClean Report February 2026” February 23, 2026 

 Global Footprint Aligns with Regionalization Trends  IC: Integrated Circuit | FPD: Flat Panel Display  7  Allen, Texas  Boise, Idaho  Brookfield, Connecticut  HQ  Bridgend, Wales  Cheonan, South Korea  Hsinchu, Taiwan   Xiamen, China  Dresden, Germany   Hefei, China  Taichung, Taiwan   Largest commercial mask maker in Taiwan.   Only high-end capable commercial mask maker in US.   IC  FPD  IC & FPD  U.S. and Asia investments align with industry regionalization trends, and diversify geographic footprint  U.S. capacity and capability extension for mid-range IC nodes  Asia capacity and capability extension to 8nm 

 Node Migration Drives Mask Set Value  Nodes  Indicative Mask Value  8  Mask pattern complexity / Mask count per IC Design / Impact of Mask performance on IC yield  Drives higher individual mask ASP, more layers per mask set, and higher barriers of entry for competitors  Currently  participating  Planning to   participate 

 FPD: Advanced Displays are Driving Innovation   Photronics leverages expertise gained from IC mask production into FPD mask production  Consumer electronics with larger, high-performance displays increase the complexity of mask production  Panel makers are developing AMOLED production processes to increase substrate size to G8.6, requiring larger, high-quality advanced masks  Customers rely on Photronics for its market leading AMOLED technology  9 

 Competitive Advantages  Global Footprint  Customer relationships  Aligned with end markets  Flexible supply chain  Technology Leader  Process expertise  Advanced Process-of-Record  High barriers to entry  Commercial Excellence  Customer first  Trusted partner  Wafer yield enhancement  Technology roadmap enabler  Operational Excellence  Responsive delivery  High yields  Cost control  Supply chain optimization  Teamwork and execution  10 

 Capital Expenditures  * 2026E Capex is represented in US$. The bar reflecting 2026 capex is not comparable to Capital Intensity Ratios for prior periods.  The Capital Intensity Ratio is defined as Capex divided by Revenue  11  2026 Capex Includes:  Allen, TX facility to begin delivering qualification masks in FQ3  Korea orders and clean room preparation for the capability extension to 8nm and beyond  End-of-Life tool upgrades expected to peak in fiscal 2026 

 Compelling Investment Thesis  A global leader in the merchant photomasks industry critical for semiconductor manufacturing  Favorable Industry Trends  12  Regionalization/ reshoring of the semiconductor industry   Captives increasing outsourcing to merchant suppliers  Node migration drives ASP expansion and revenue growth  Foldable displays and higher value masks drive FPD opportunity   Premier operational execution enables preferred supplier status  Consistent delivery of cash flow for strategic flexibility  Operational Excellence 

 Fiscal Q2 2026 Financial Results 

 FQ2 2026 Summary  Revenue  Gross Margin  Operating Margin  Diluted EPS  Non-GAAP Diluted EPS1  FQ2 2026  $209.9M  31.3%  20.1%  $0.54  $0.42  FQ1 2026  $225.1M  35.0%  24.4%  $0.74  $0.61  FQ2 2025  $211.0M  36.9%  26.4%  $0.15  $0.40  1See reconciliation included in this presentation  Totals may differ due to rounding  14  Revenue reflects temporary delays of semiconductor design releases due to high industry fab utilization rates, allocation of memory supply, and macroeconomic concerns. Display grew 13% y/y as customers prepare for upcoming consumer electronics launches  Promising long-term demand driven by regionalization & reshoring, node migration, and overall semiconductor / display industry growth  Revenue by Geographic Origin: Taiwan (32%), China IC (17%), China FPD (12%), U.S. (16%), South Korea (19%), Europe (4%)  Gross margin of 31.3% reflects operational leverage inherent in our financial model, and also product mix  Non-GAAP Diluted EPS of $0.42 reflects temporary design release delays 

 Revenue by Product Line  $M  2Q26  Q/Q  Y/Y  High-End*  56.7  (21%)  (4%)  Mainstream  90.9  (3%)  (6%)  Total  147.5  (11%)  (5%)  Temporarily delayed design releases resulting from high industry fab utilization rates, memory tightness, and macro factors  Strategic emphasis on High-End to leverage competitive advantage  Both High-End and Mainstream expected to continue experiencing node migration to more advanced IC geometries driving ASPs  *IC: 28nm and smaller; FPD: G10.5+, AMOLED and LTPS   Totals may differ due to rounding  High-End accelerated ahead of major consumer electronics releases in the Fall  China IT market reverted back to traditional run rate   Competitive advantages in larger, more complex panel sizes using AMOLED display technology such as G10.5 and G8.6  $M  2Q26  Q/Q  Y/Y  High-End*  52.8  13%  21%  Mainstream  9.6  (25%)  (16%)  Total  62.4  4%  13%  IC  FPD  15 

 Operating cash flow represented 22% of revenue with contribution from our largest geographic regions  FQ2 capex primarily reflects outlays for our Korea node extension down to 8nm, end-of-life tool upgrades, facility optimization and Allen expansion  Capital allocation:  Organic growth investments: investing in U.S. and South Korea to support customer growth plans and capture more high-end opportunities  Business development initiatives: leverage and enhance core competencies  Return cash to shareholders: Repurchased $97M throughout Fiscal 2025; $28M currently authorized  Balance Sheet and Cash Flow Metrics  $M  2Q26  1Q26  2Q25  Cash, cash equivalents and Short-term investments  637.7  636.9  558.4  Debt  3.9  0.02  0.03  Operating Cash Flow  47.0  97.3  31.5  Capital Expenditures  45.8  47.6  60.5  16 

 FQ3 2026 Guidance   Assumptions:  Delayed design starts because of tight memory conditions, prolonged profitability maximization of existing designs, and macroeconomic factors  Allen, TX facility to begin delivering qualification masks in FQ3  Fiscal 2026 capex reflects latter stages of expansion in U.S., initial expansion in South Korea, and peak end-of-life tool replacement  Revenue ($M)  207 – 215  Operating Margin  18% - 20%  Diluted non-GAAP EPS  $0.39 - $0.45  Diluted Shares (M)  ~59  Full-year Capex ($M)  ~330  17 

 Appendix 

 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 on the following page.   19 

 Non-GAAP Financial Measures  20 

FAQ

How did Photronics (PLAB) perform financially in Q2 fiscal 2026?

Photronics reported Q2 fiscal 2026 revenue of $209.9 million and net income attributable to shareholders of $31.4 million. Diluted EPS was $0.54, with non-GAAP diluted EPS of $0.42, reflecting stronger profitability versus the prior-year quarter.

What were Photronics’ profit margins in Q2 fiscal 2026?

In Q2 fiscal 2026, Photronics generated a 31.3% gross margin and a 20.1% operating margin. These margins show the company remains solidly profitable, though they eased compared with prior periods due to product mix and temporary design release delays.

What guidance did Photronics (PLAB) give for Q3 fiscal 2026?

For Q3 fiscal 2026, Photronics expects revenue of $207–$215 million and non-GAAP diluted EPS of $0.39–$0.45. Guidance assumes delayed design starts from tight memory conditions, extended use of existing designs, and macroeconomic factors, alongside ongoing facility investments.

What is Photronics’ cash and debt position after Q2 fiscal 2026?

At May 3, 2026, Photronics held $637.7 million in cash, cash equivalents and short-term investments, with total debt of only $3.9 million. This net cash position provides financial flexibility to support capacity expansions and other strategic initiatives.

How much did Photronics invest in capital expenditures in early fiscal 2026?

During the first six months of fiscal 2026, Photronics spent $93.4 million on capital expenditures. These investments support U.S. and South Korea expansions, including node migration down to 8nm, end-of-life tool upgrades, facility optimization, and the Allen, Texas facility ramp.

What were Photronics’ operating cash flows in the first half of fiscal 2026?

For the six months ended May 3, 2026, Photronics generated $144.3 million in net cash from operating activities. This strong cash flow was driven by net income of $103.4 million plus non-cash items such as depreciation and share-based compensation.

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