Press Release

Photronics Reports Second Quarter 2026 Results

May 28, 2026 at 7:00 AM EDT
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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,
   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  

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Source: Photronics, Inc.