BROOKFIELD, Conn., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2026 ended August 2, 2026.
Commenting on the third quarter performance, Chairman and CEO George Macricostas said, “We are pleased to recognize a recovery of some of the temporarily delayed semiconductor design releases that occurred back in our fiscal Q2. Continued high fab utilization rates throughout the industry have been a positive influence toward node migration trends, resulting in a record percentage for our high-end I.C. business at 44% of total I.C. revenue. Our investments in the U.S. and Korea remain on track as we continue to strengthen our position at the high end of the market over the coming years.”
Third Quarter Fiscal 2026 Results
- Revenue was $216.0 million, an increase of 2.7% year-over-year and 2.9% sequentially.
- GAAP Net income attributable to Photronics, Inc. shareholders was $28.9 million, or $0.49 per diluted share, compared with $22.9 million, or $0.39 per diluted share, in the third quarter of 2025 and $31.4 million, or $0.54 per diluted share, in the second quarter of 2026.
- Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million, or $0.50 per diluted share, compared with $29.4 million, or $0.51 per diluted share in the third quarter of 2025 and $24.9 million, or $0.42 per diluted share, in the second quarter of 2026.
- IC revenue was $154.7 million, an increase of 5% both year-over-year and sequentially.
- FPD revenue was $61.4 million, a decrease of 2% both year-over-year and sequentially.
- Cash, cash equivalents and short-term investments at the end of the quarter were $672.8 million, of which $503.5 million was associated with our Joint Ventures, of which we own 50.01%.
- Cash generated from operating activities was $76.3 million, and cash invested in organic growth through capital expenditures was $37.0 million.
Fourth Quarter Fiscal 2026 Guidance
For the fourth quarter of fiscal 2026, Photronics expects:
- Revenue to be between $207 million and $227 million,
- Operating margin to be between 19% and 24%, and
- Non-GAAP diluted EPS attributable to Photronics, Inc. shareholders to be between $0.40 and $0.56 per share.
Estimated Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders is a Non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” below for details regarding this measure, as well as the tables providing a reconciliation of historical non-GAAP financial measures to the most comparable U.S. GAAP measures.
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 August 26, 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. historical 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.
Photronics, Inc. does not provide a quantitative reconciliation of the Company’s projected range of Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company’s Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders guidance for the fiscal quarter ending October 31, 2026 excludes certain items that are inherently uncertain and difficult to predict, including certain unpredictable charges and benefits such as foreign exchange (gain) loss; estimated tax effects of foreign exchange (gain) loss; and estimated noncontrolling interest effects of the foregoing. Due to the uncertainty of the amount or timing of these future excluded items, management does not forecast them for internal use and therefore cannot create a quantitative Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders reconciliation without unreasonable efforts. A quantitative reconciliation of Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, foreign exchange (gain) loss; estimated tax effects of foreign exchange (gain) loss; and estimated noncontrolling interest effects of the foregoing. The timing and amount of any of these excluded items could significantly impact the Company’s U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders for a particular period.
Totals presented may not sum due to rounding.
For Further Information:
Ted Moreau
VP, Investor Relations
[email protected]
2026
2025
2026
2025
Revenue$216,047 $209,940 $210,394 $651,054 $633,524 Cost of goods sold 144,313 144,183 139,539 434,862 409,228 Gross profit 71,734 65,757 70,855 216,192 224,296 Gross margin % 33.2% 31.3% 33.7% 33.2% 35.4% Operating expenses: Selling, general and administrative 22,543 20,756 18,423 64,610 55,624 Research and development 3,707 2,822 4,271 9,116 12,618 Total operating expenses 26,250 23,578 22,694 73,726 68,242 Other operating Income 20 - - 76 - Operating income 45,504 42,179 48,161 142,542 156,054 Operating margin % 21.1% 20.1% 22.9% 21.9% 24.6% Other income (expense), net 9,368 11,677 (9,428) 40,718 (10,232) Income before income tax provision 54,872 53,856 38,733 183,260 145,822 Income tax provision 10,989 10,606 9,594 35,950 34,209 Net income 43,883 43,250 29,139 147,310 111,613 Net income attributable to noncontrolling interests 14,967 11,821 6,248 44,026 37,009 Net income attributable to Photronics, Inc. shareholders$28,916 $31,429 $22,891 $103,284 $74,604 Earnings per share attributed to Photronics, Inc. shareholders: Basic$0.50 $0.54 $0.40 $1.78 $1.24 Diluted$0.49 $0.54 $0.39 $1.76 $1.23 Weighted-average number of common shares outstanding: Basic 58,181 58,123 57,937 58,033 60,274 Diluted 58,718 58,745 58,068 58,618 60,567
October 31,
2026
2025
Assets Current assets: Cash and cash equivalents$549,513 $492,256 Short-term investments 123,298 95,909 Accounts receivable 187,730 195,921 Inventories 64,748 61,767 Other current assets 49,567 44,199 Total current assets 974,856 890,052 Property, plant and equipment, net 955,038 854,436 Other assets 60,849 60,046 Total assets$1,990,743 $1,804,534 Liabilities and Equity Current liabilities: Current portion of long-term debt$3,889 $11 Accounts payable and accrued liabilities 193,394 165,862 Total current liabilities 197,283 165,873 Long-term debt 4 13 Other liabilities 49,754 41,341 Equity: Photronics, Inc. shareholders' equity 1,280,694 1,173,589 Noncontrolling interests 463,008 423,718 Total equity 1,743,702 1,597,307 Total liabilities and equity$1,990,743 $1,804,534
2025
Cash flows from operating activities: Net income$147,310 $111,613 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 60,818 59,234 Share-based compensation 10,437 10,003 Changes in operating assets, liabilities and other 2,045 (20,876) Net cash provided by operating activities 220,610 159,974 Cash flows from investing activities: Purchases of property, plant and equipment (130,410) (120,588)Purchases of short-term investments (178,654) (96,571)Proceeds from maturities of short-term investments 135,571 42,148 Proceeds from sales of short-term investments 20,233 - Government incentives 2,567 1,469 Other (56) (57) Net cash used in investing activities (150,749) (173,599) Cash flows from financing activities: Repayments of debt (8) (17,969)Common stock repurchases - (97,422)Proceeds from share-based arrangements 1,337 2,120 Net settlements of restricted stock awards (1,673) (2,013) Net cash used in financing activities (344) (115,284) Effects of exchange rate changes on cash, cash equivalents, and restricted cash (12,306) 10,129 Net increase (decrease) in cash, cash equivalents, and restricted cash 57,211 (118,780)Cash, cash equivalents, and restricted cash, beginning of period 495,113 601,243 Cash, cash equivalents, and restricted cash, end of period 552,324 482,463 Less: Ending restricted cash 2,811 2,942 Cash and cash equivalents at end of period$549,513 $479,521
2026
2025
U.S. GAAP net income attributable to Photronics, Inc. shareholders$28,916 $31,429 $22,891 FX (gain) loss (4,776) (7,869) 14,258 Estimated tax effects of FX (gain) loss 2,055 629 (3,663)Estimated noncontrolling interest effects of above 3,233 739 (4,130) Non-GAAP net income attributable to Photronics, Inc. shareholders$29,428 $24,928 $29,356 Weighted-average number of common shares outstanding - Diluted 58,718 58,745 58,068 U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders$0.49 $0.54 $0.39 Effects of non-GAAP adjustments above 0.01 (0.12) 0.12 Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders$0.50 $0.42 $0.51