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
[email protected]

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