Photronics Reports First Quarter Fiscal 2026 Results
Rhea-AI Summary
Photronics (NASDAQ:PLAB) reported fiscal Q1 2026 results for the period ended Feb 1, 2026: Revenue $225.1M (+6.1% YoY, +4.3% QoQ) and GAAP net income $42.9M ($0.74 diluted EPS). IC revenue was $165.3M and FPD revenue was $59.8M. Cash, cash equivalents and short-term investments totaled $636.9M (includes $459.1M tied to 50.01% JVs). Operating cash flow was $97.3M and capex was $47.6M. For Q2 FY2026 Photronics expects revenue of $212M–$220M and non-GAAP diluted EPS of $0.49–$0.55. A webcast to discuss results is scheduled for Feb 27, 2026.
Positive
- Revenue of $225.1M (+6.1% YoY)
- IC revenue $165.3M, record high-end IC revenue for second consecutive quarter
- Operating cash flow of $97.3M for the quarter
- Capex investment of $47.6M in organic growth
Negative
- Q2 revenue guidance of $212M–$220M is below Q1 revenue of $225.1M at the midpoint
- GAAP diluted EPS decreased sequentially to $0.74 from $1.07 in Q4 2025
News Market Reaction – PLAB
On the day this news was published, PLAB gained 14.69%, reflecting a significant positive market reaction. Argus tracked a peak move of +12.8% during that session. Argus tracked a trough of -6.7% from its starting point during tracking. Our momentum scanner triggered 51 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $343M to the company's valuation, bringing the market cap to $2.68B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PLAB was up 2.59% with strong volume while key peers showed mixed moves: UCTT +18.16%, DQ +6.05%, ACMR +2.87%, VECO flat at +0.07%, and COHU slightly down -0.42%. Momentum scanner flagged only ICHR at +1.89%, suggesting a stock-specific driver rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 23 | Call rescheduling | Neutral | -2.5% | Rescheduled FQ1 2026 earnings call due to weather-related logistical issues. |
| Feb 04 | Investor events | Neutral | -3.6% | Outlined participation in upcoming investor conferences and FQ1 2026 webcast timing. |
| Feb 04 | Earnings date set | Neutral | -3.6% | Announced date and time for reporting first quarter fiscal 2026 results. |
| Jan 13 | Executive changes | Positive | -0.9% | Appointed new President/CFO and other officers to enhance clarity and accountability. |
| Jan 08 | Sales leadership | Positive | -8.8% | Named Senior VP, Global Sales to drive high-end opportunities and revenue growth. |
Recent announcements, even neutral-to-positive ones, have often been followed by negative price reactions, indicating a cautious or skeptical market stance toward company news.
Over the past few months, PLAB’s news flow focused on communications and leadership changes. Announcements about scheduling and hosting the FQ1 2026 earnings call and upcoming investor events in February–March 2026 were followed by share price declines of between -2.55% and -3.58%. Executive and senior sales appointments in January 2026 were framed positively, yet drew reactions of -0.92% and -8.84%. Against this backdrop, the current strong quarterly results and guidance represent a more fundamental update than the recent logistical and personnel news items.
Market Pulse Summary
The stock surged +14.7% in the session following this news. A strong positive reaction aligns with the company’s report of Q1 FY2026 revenue of $225.1M, record high-end IC revenue of $165.3M, and non-GAAP EPS of $0.61. Historically, shares often reacted cautiously to news, including management changes. Investors weighing sustainability could monitor execution on facility expansions, cash deployment from the $636.9M balance, and whether upcoming quarters meet the guided non-GAAP EPS range of $0.49–$0.55.
Key Terms
gaap financial
non-gaap financial
capital expenditures financial
AI-generated analysis. Not financial advice.
BROOKFIELD, Conn., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its first quarter of fiscal year 2026 ended February 1, 2026.
Commenting on the first quarter performance, Chairman and CEO George Macricostas said, “Photronics delivered strong results in our fiscal first quarter achieving record high-end IC revenue for the second consecutive quarter. We remain on track with our facility expansion plans, which along with continuous process improvements and the refinement of our execution, will diversify our geographic revenue mix as industry regionalization continues.”
First Quarter Fiscal 2026 Results
- Revenue was
$225.1 million , up6.1% year-over-year and up4.3% sequentially. - GAAP Net income attributable to Photronics, Inc. shareholders was
$42.9 million , or$0.74 per diluted share, compared with$42.9 million , or$0.68 per diluted share, in the first quarter of 2025 and$61.8 million , or$1.07 per diluted share, in the fourth quarter of 2025. - Non-GAAP Net income attributable to Photronics, Inc. shareholders was
$35.7 million , or$0.61 per diluted share, compared with$32.4 million , or$0.52 per diluted share in the first quarter of 2025 and$34.6 million , or$0.60 per diluted share, in the fourth quarter of 2025. - IC revenue was
$165.3 million , an increase of7% year-over-year and up5% sequentially. - FPD revenue was
$59.8 million , an increase of3% both year-over-year and sequentially. - Cash, cash equivalents and short-term investments at the end of the quarter were
$636.9 million , of which$459.1 million was associated with our Joint Ventures, of which we own50.01% . - Cash generated from operating activities was
$97.3 million , and cash invested in organic growth through capital expenditures was$47.6 million .
Second Quarter Fiscal 2026 Guidance
For the second quarter of fiscal 2026, Photronics expects Revenue to be between
Webcast
A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on February 27, 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.
| PHOTRONICS, INC. | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| February 1, | October 31, | February 2, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Revenue | $ | 225,066 | $ | 215,770 | $ | 212,138 | ||||||
| Cost of goods sold | 146,364 | 140,236 | 136,603 | |||||||||
| Gross Profit | 78,702 | 75,534 | 75,535 | |||||||||
| Gross margin % | 35.0 | % | 35.0 | % | 35.6 | % | ||||||
| Operating Expenses: | ||||||||||||
| Selling, general and administrative | 21,311 | 20,001 | 19,101 | |||||||||
| Research and development | 2,588 | 3,185 | 4,257 | |||||||||
| Total Operating Expenses | 23,899 | 23,186 | 23,358 | |||||||||
| Other operating Income (expense) | 56 | (241 | ) | - | ||||||||
| Operating Income | 54,859 | 52,107 | 52,177 | |||||||||
| Operating Margin | 24.4 | % | 24.1 | % | 24.6 | % | ||||||
| Other income, net | 19,673 | 23,855 | 24,981 | |||||||||
| Income Before Income Tax Provision | 74,532 | 75,962 | 77,158 | |||||||||
| Income tax provision (benefit) | 14,355 | (2,659 | ) | 18,901 | ||||||||
| Net Income | 60,177 | 78,621 | 58,257 | |||||||||
| Net income attributable to noncontrolling interests | 17,238 | 16,820 | 15,406 | |||||||||
| Net income attributable to Photronics, Inc. shareholders | $ | 42,939 | $ | 61,801 | $ | 42,851 | ||||||
| Earnings per share attributed to Photronics, Inc. shareholders: | ||||||||||||
| Basic | $ | 0.74 | $ | 1.07 | $ | 0.69 | ||||||
| Diluted | $ | 0.74 | $ | 1.07 | $ | 0.68 | ||||||
| Weighted-average number of common shares outstanding: | ||||||||||||
| Basic | 57,794 | 57,600 | 62,093 | |||||||||
| Diluted | 58,390 | 57,977 | 62,661 | |||||||||
| PHOTRONICS, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| February 1, | October 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 544,133 | $ | 492,256 | ||||
| Short-term investments | 92,738 | 95,909 | ||||||
| Accounts receivable | 199,490 | 195,921 | ||||||
| Inventories | 62,653 | 61,767 | ||||||
| Other current assets | 47,235 | 44,199 | ||||||
| Total current assets | 946,249 | 890,052 | ||||||
| Property, plant and equipment, net | 894,620 | 854,436 | ||||||
| Other assets | 60,550 | 60,046 | ||||||
| Total assets | $ | 1,901,419 | $ | 1,804,534 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 11 | $ | 11 | ||||
| Accounts payable and accrued liabilities | 206,638 | 165,862 | ||||||
| Total current liabilities | 206,649 | 165,873 | ||||||
| Long-term debt | 10 | 13 | ||||||
| Other liabilities | 44,839 | 41,341 | ||||||
| Equity: | ||||||||
| Photronics, Inc. shareholders' equity | 1,211,390 | 1,173,589 | ||||||
| Noncontrolling interests | 438,531 | 423,718 | ||||||
| Total equity | 1,649,921 | 1,597,307 | ||||||
| Total liabilities and equity | $ | 1,901,419 | $ | 1,804,534 | ||||
| PHOTRONICS, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| February 1, | February 2, | |||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 60,177 | $ | 58,257 | ||||
| Adjustments to reconcile net income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation and amortization | 19,802 | 20,792 | ||||||
| Share-based compensation | 2,851 | 3,334 | ||||||
| Changes in operating assets, liabilities and other | 14,424 | (3,917 | ) | |||||
| Net cash provided by operating activities | 97,254 | 78,466 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (47,635 | ) | (35,200 | ) | ||||
| Purchases of short-term investments | (36,611 | ) | - | |||||
| Proceeds from maturities of short-term investments | 41,483 | 41,482 | ||||||
| Government incentives | 2,567 | 620 | ||||||
| Other | (80 | ) | (57 | ) | ||||
| Net cash (used in) provided by investing activities | (40,276 | ) | 6,845 | |||||
| Cash flows from financing activities: | ||||||||
| Repayments of debt | (3 | ) | (15,343 | ) | ||||
| Common stock repurchases | - | (4,573 | ) | |||||
| Proceeds from share-based arrangements | 752 | 1,433 | ||||||
| Net settlements of restricted stock awards | - | (1,995 | ) | |||||
| Net cash provided by (used in) financing activities | 749 | (20,478 | ) | |||||
| Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (5,915 | ) | (21,202 | ) | ||||
| Net increase in cash, cash equivalents, and restricted cash | 51,812 | 43,631 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 495,113 | 601,243 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | 546,925 | 644,874 | ||||||
| Less: Ending restricted cash | 2,792 | 2,674 | ||||||
| Cash and cash equivalents at end of period | $ | 544,133 | $ | 642,200 | ||||
| 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 | |||||||||||
| February 1, | October 31, | February 2, | |||||||||
| 2026 | 2025 | 2025 | |||||||||
| U.S. GAAP net income attributable to Photronics, Inc. shareholders | $ | 42,939 | $ | 61,801 | $ | 42,851 | |||||
| FX (gain) loss | (12,865 | ) | (18,615 | ) | (18,443 | ) | |||||
| Estimated tax effects of FX (gain) loss | 2,553 | 4,781 | 5,152 | ||||||||
| Estimated noncontrolling interest effects of above | 3,032 | 3,341 | 2,823 | ||||||||
| Reversal of deferred tax valuation allowance | - | (16,751 | ) | - | |||||||
| Non-GAAP net income attributable to Photronics, Inc. shareholders | $ | 35,659 | $ | 34,557 | $ | 32,383 | |||||
| Weighted-average number of common shares outstanding - Diluted | 58,390 | 57,977 | 62,661 | ||||||||
| U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders | $ | 0.74 | $ | 1.07 | $ | 0.68 | |||||
| Effects of non-GAAP adjustments above | (0.13 | ) | (0.47 | ) | (0.16 | ) | |||||
| Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders | $ | 0.61 | $ | 0.60 | $ | 0.52 | |||||
For Further Information: Ted Moreau VP, Investor Relations 469.395.8175 tmoreau@photronics.com
FAQ
What were Photronics (PLAB) revenue and EPS in fiscal Q1 2026?
How did Photronics (PLAB) perform in IC and FPD segments in Q1 2026?
What cash and liquidity did Photronics (PLAB) report at the end of Q1 2026?
What guidance did Photronics (PLAB) give for fiscal Q2 2026?
How much cash did Photronics (PLAB) generate from operations and invest in capex in Q1 2026?
When is Photronics (PLAB) discussing Q1 2026 results with investors?
