10-Q · June 11, 2026
Photronics, Inc. reported Q2 FY26 financial results with revenue of $209.9 million and diluted EPS of $0.42, missing consensus estimates of $216.3 million and $0.53 respectively. Both revenue and gross margins reflected…
Earnings analysis · 10-Q
PLAB earnings analysis
Filed September 10, 2026 · Our reading of the company's report
The latest report
Photronics delivered a solid third quarter, with revenue of $216.0 million up 2.9% sequentially and 2.7% year over year, led by a 4.9% sequential increase in IC revenue. Gross and operating margins improved…
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Photronics delivered a solid third quarter, with revenue of $216.0 million up 2.9% sequentially and 2.7% year over year, led by a 4.9% sequential increase in IC revenue. Gross and operating margins improved sequentially, but both remained below the prior-year levels, while GAAP EPS increased to $0.49 from $0.39 a year earlier. Liquidity and operating cash flow were strong, although FPD demand, cost inflation, foreign-exchange exposure, and substantial planned capital spending remain important offsets.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.49
What stood out
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Revenue Rebounded Sequentially and YoY
Revenue increased to $216.0 million, up $6.1 million or 2.9% from $209.9 million sequentially and up $5.7 million or 2.7% from $210.4 million a year earlier.
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IC Business Recovered
IC revenue rose to $154.7 million, up 4.9% sequentially and 4.6% year over year, driven by recovery from delayed semiconductor design releases and accelerated node migration.
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Margins Improved Sequentially
Gross margin improved to 33.2% from 31.3% sequentially, while operating margin increased to 21.1% from 20.1%; management attributed the gross-margin improvement to favorable product mix, higher revenue, and operating leverage.
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GAAP EPS Rose Year Over Year
GAAP diluted EPS was $0.49 versus $0.54 sequentially and $0.39 a year earlier; non-GAAP diluted EPS was $0.50 versus $0.42 sequentially and $0.51 a year earlier.
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Operating Cash Flow Strengthened
Nine-month operating cash flow increased to $220.6 million from $160.0 million, while nine-month capital-expenditure payments were $130.4 million versus $120.6 million a year earlier, implying approximately $90.2 million of nine-month cash flow after capex.
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Liquidity Remains Strong
Cash and cash equivalents increased to $549.5 million from $492.3 million at October 31, 2025. The company reported no borrowings against its $25 million China facility and no variable-rate borrowings outstanding at quarter-end.
What to watch
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Year-Over-Year Margin Compression
Gross margin declined to 33.2% from 33.7% a year earlier and nine-month gross margin fell to 33.2% from 35.4%, reflecting higher material, labor and benefits, and manufacturing costs.
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FPD Demand Remains Soft
FPD revenue declined to $61.4 million, down 1.7% sequentially and 1.9% year over year, with management citing the timing of consumer-electronics launches and tight memory conditions in emerging markets.
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Foreign-Exchange Exposure Increased
A 10% adverse currency movement would have produced a $71.5 million net unrealized pretax loss as of August 2, 2026, an increase of $4.7 million from the prior quarter; nine-month cash was also reduced by a $12.3 million foreign-exchange impact.
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High Capital-Expenditure Commitment
The company expects fiscal 2026 capital expenditures of $255 million to $305 million and had $215.3 million of outstanding capital commitments plus $48.9 million of accrued capital-equipment liabilities at August 2, 2026.
Management's outlook
The 10-Q states that current business outlook and guidance were provided in the Q3 earnings release, presentation, and conference call but were not incorporated into the filing. The filing does provide fiscal 2026 capital-expenditure expectations of $255 million to $305 million and estimates funding $257.3 million of $264.2 million in committed and recognized capital-expenditure obligations over the next twelve months.
Earlier filings 4
10-Q · March 11, 2026
Photronics reported Q1 revenue of $225.066M (up $12.928M or +6.1% year-over-year) and diluted EPS of $0.74 (up $0.06 or +8.8% year-over-year). Gross margin compressed slightly to 35.0% (down ~0.6ppt Y/Y) while operating…
10-K · December 17, 2025
Photronics presents itself as a global, single‑segment leader in photomasks with targeted R&D for advanced nodes (7nm and below, EUV) and AI‑grade photomasks, supported by 11 manufacturing facilities worldwide.…
10-Q · March 13, 2025
Photronics reported quarterly revenue of $212,138,000 and diluted EPS of $0.68 for the three months ended February 2, 2025. Revenue and margins contracted modestly versus the prior year while net income and EPS rose…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.