Photronics, Inc.

Photronics, Inc. Earnings Recaps

PLAB Information Technology 3 recaps
Next earnings: August 26, 2026 (estimated) · full calendar
Q2 2026 May 30, 2026

Photronics shares plunged 39.5% following disappointing near-term demand driven by delayed design releases and ongoing margin pressure. Weakness in the IC segment and cautious outlook on timing of recovery spooked investors despite ongoing expansion investments.

Key takeaways
  • Q2 revenue was $210 million, essentially flat year-over-year but down sequentially from Q1, reflecting softness post-Chinese New Year.
  • IC revenue declined 5% YoY to $148 million and accounted for 70% of total revenue; high-end IC made up 38% of this segment.
  • Delays in design releases attributed to high fab utilization restricting capacity, memory supply constraints, and geopolitical uncertainty.
  • FPD revenue grew 13% YoY to $62 million, supported by complex mask production and solid AMOLED demand, especially in Korea and China.
  • Capital investments in U.S. and Korea remain on track to start generating revenue late fiscal 2026 and 2027, aimed at securing long-term high-end market position and geographic diversification.
Full recap
Q1 2026 Feb 27, 2026

Photronics reported a solid first quarter for fiscal 2026 with revenue of $225 million, a 4% sequential increase, driven by strong demand in the high-end integrated circuit (IC) market, particularly ahead of the Chinese New Year.

Key takeaways
  • High-end IC revenue reached a record $71 million, growing 19% year-over-year, contributing to overall IC revenue of $165 million (up 7% YoY).
  • Gross margin improved to 35%, benefiting from increased revenue and a greater share of high-end products.
  • Diluted GAAP EPS was $0.74, while non-GAAP diluted EPS came in at $0.61, reflecting robust operational cash flow of $97 million.
  • Capital expenditures for the quarter totaled $48 million, reaffirming a full-year CapEx guidance of $330 million to support strategic expansions.
  • Continued investment in technology and regionalization of semiconductor manufacturing positions Photronics to capture emerging high-end opportunities.
Full recap
Q4 2025 Dec 10, 2025

Photronics reported strong Q4 results with $216 million in sales, driven by record high-end IC revenue, while capitalizing on operational strengths for future growth.

Key takeaways
  • Q4 non-GAAP diluted EPS reached 60¢, surpassing guidance amid a 3% sequential sales increase.
  • High-end IC revenue set a record at 42% of total IC revenue, reflecting robust demand, particularly in the U.S.
  • The company is expanding production capabilities in Texas and Korea, targeting enhanced exposure to advanced semiconductor nodes.
  • Gross margin improved to 35%, bolstered by a favorable product mix despite mainstream IC revenue challenges.
  • Demand for FPD masks is rebounding, with expectations for strong performance in Q1 fiscal 2026.
Full recap