Photronics Reports Third Quarter 2026 Results

Rhea-AI Summary

Photronics (NASDAQ:PLAB) reported third quarter fiscal 2026 revenue of $216.0 million, up 2.7% year-over-year and 2.9% sequentially. GAAP net income attributable to shareholders was $28.9 million, or $0.49 diluted EPS, versus $22.9 million ($0.39) a year ago and $31.4 million ($0.54) in the prior quarter. Non-GAAP net income attributable to shareholders was $29.4 million, or $0.50 diluted EPS.

Integrated circuit (IC) revenue was $154.7 million, up 5% year-over-year and sequentially, while flat panel display (FPD) revenue was $61.4 million, down 2% on both bases. Gross margin was 33.2% and operating margin 21.1%. Cash, cash equivalents and short-term investments totaled $672.8 million, including $503.5 million at majority-owned joint ventures. Operating cash flow was $76.3 million in the quarter. For fourth quarter 2026, the company expects revenue of $207–$227 million, operating margin of 19%–24%, and non-GAAP diluted EPS of $0.40–$0.56 per share.

Positive

• Revenue $216.0 million, up 2.7% year-over-year and 2.9% sequentially
• GAAP net income to shareholders $28.9 million, up from $22.9 million in Q3 2025
• Non-GAAP diluted EPS $0.50, up from $0.42 in Q2 2026
• IC revenue $154.7 million, growing 5% year-over-year and sequentially
• Gross margin 33.2%, above 31.3% reported in Q2 2026
• Cash, cash equivalents and short-term investments $672.8 million with minimal debt on balance sheet

Negative

• GAAP diluted EPS $0.49, down from $0.54 in Q2 2026
• FPD revenue $61.4 million, decreasing 2% year-over-year and sequentially
• Operating margin 21.1%, below 22.9% in Q3 2025
• Accounts payable and accrued liabilities $193.4 million, up from $165.9 million at October 31, 2025

Market reaction after 3Q26 earnings report: PLAB +15.48%

+15.48% $33.86 62.2x vol

15m delay

+15.48% Vs previous close

$33.86 Last Price

$29.50 $33.99 Day Range

$2.00B Market Cap

62.2x Rel. Volume

Following this news, PLAB has gained 15.48%, reflecting a significant positive market reaction. Our momentum scanner has triggered 25 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $33.86. Trading volume is exceptionally heavy at 62.2x the average, suggesting very strong buying interest.

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Market Context

The five-event, tag-matched earnings history averaged -6.31%, adding a cautious historical benchmark...

Analysis

The five-event, tag-matched earnings history averaged -6.31%, adding a cautious historical benchmark to this update. Investors may watch whether IC growth offsets FPD weakness and whether the Q4 guidance range narrows.

Key Figures

Revenue: $216.0 million GAAP Net Income: $28.9 million GAAP Diluted EPS: $0.49 +5 more

8 metrics

Revenue $216.0 million Q3 FY2026; up 2.7% year-over-year and 2.9% sequentially

GAAP Net Income $28.9 million Q3 FY2026; compared with $22.9 million in Q3 FY2025 and $31.4 million in Q2 FY2026

GAAP Diluted EPS $0.49 Q3 FY2026; compared with $0.39 in Q3 FY2025 and $0.54 in Q2 FY2026

Non-GAAP Diluted EPS $0.50 Q3 FY2026; compared with $0.51 in Q3 FY2025 and $0.42 in Q2 FY2026

IC Revenue $154.7 million Q3 FY2026; up 5% year-over-year and sequentially

FPD Revenue $61.4 million Q3 FY2026; down 2% year-over-year and sequentially

Cash and Investments $672.8 million End of Q3 FY2026; $503.5 million associated with joint ventures

Q4 Guidance $207 million-$227 million revenue; 19%-24% operating margin; $0.40-$0.56 non-GAAP diluted EPS Fourth quarter fiscal 2026

Previous Earnings Reports

5 past events · Latest: May 28 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 28	Q2 earnings	Neutral	-36.4%	Mixed quarterly results included lower revenue, stronger profit, and reduced semiconductor design-start expectations.
Aug 27	Q3 earnings	Positive	+7.6%	Results included strong cash, a share-repurchase authorization increase, and fourth-quarter guidance.
May 28	Q2 earnings	Negative	-15.6%	Leadership transition accompanied weaker earnings and lower quarterly revenue.
Feb 26	Q1 earnings	Positive	+2.0%	Higher GAAP profit and continued high-end product demand supported the quarterly update.
Dec 11	FY24 earnings	Positive	+10.8%	Annual results showed higher GAAP profit, strong operating cash generation, and limited debt.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-matched earnings reactions were mixed but averaged -6.31%, driven by a -36.42% reaction after Q2 FY2026 results.

Key Terms

photomask, non-gaap, diluted eps

3 terms

photomask technical

"Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks"

A photomask is a precise glass or quartz plate that acts like a stencil to project microscopic circuit patterns onto silicon wafers during semiconductor manufacturing. It matters to investors because photomasks are critical to making advanced chips—errors or shortages can slow production, raise costs, and affect yields, so demand and quality of photomasks influence equipment suppliers, chipmakers’ profitability, and the broader semiconductor supply chain.

non-gaap financial

"Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

diluted eps financial

"Non-GAAP diluted EPS attributable to Photronics, Inc. shareholders to be between $0.40 and $0.56"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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
tmoreau@photronics.com

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
	Three Months Ended												Nine Months Ended
	August 2,				May 3,				August 3,				August 2,				August 3,
	2026				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

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
	August 2,				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

PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
	Nine Months Ended
	August 2,				August 3,
	2026				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

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
	August 2,				May 3,				August 3,
	2026				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

FAQ

How did Photronics (PLAB) perform in its Q3 2026 earnings results?

Photronics reported Q3 2026 revenue of $216.0 million and GAAP diluted EPS of $0.49. According to Photronics, revenue grew 2.7% year-over-year and 2.9% sequentially, with IC revenue up 5% and non-GAAP diluted EPS at $0.50.

What guidance did Photronics (PLAB) provide for Q4 fiscal 2026?

For Q4 fiscal 2026, Photronics expects revenue of $207–$227 million and non-GAAP diluted EPS of $0.40–$0.56. According to Photronics, the company also guides operating margin between 19% and 24%, reflecting its outlook for the next quarter.

What were Photronics (PLAB) IC and FPD revenues in Q3 2026?

In Q3 2026, Photronics reported IC revenue of $154.7 million and FPD revenue of $61.4 million. According to Photronics, IC revenue increased 5% year-over-year and sequentially, while FPD revenue decreased 2% on both a year-over-year and sequential basis.

How strong is Photronics (PLAB) balance sheet after Q3 2026?

Photronics ended Q3 2026 with $672.8 million in cash, cash equivalents and short-term investments. According to Photronics, this includes $503.5 million at majority-owned joint ventures, against very low reported debt, with total assets of $1.99 billion and shareholders’ equity of $1.28 billion.

What margins did Photronics (PLAB) report for Q3 2026?

Photronics reported a Q3 2026 gross margin of 33.2% and operating margin of 21.1%. According to Photronics, gross margin improved from 31.3% in the prior quarter, while operating margin compares with 22.9% in the third quarter of 2025.

What was Photronics (PLAB) operating cash flow for the first nine months of 2026?

For the first nine months of fiscal 2026, Photronics generated operating cash flow of $220.6 million. According to Photronics, this compares with $160.0 million in the prior-year period and supported $130.4 million in capital expenditures for property, plant and equipment.

Did Photronics (PLAB) repurchase stock during the first nine months of 2026?

Photronics did not report share repurchases during the first nine months of fiscal 2026. According to Photronics, financing cash flows show no cash used for common stock repurchases, compared with $97.4 million of buybacks in the prior-year period.