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 MoreauVP, Investor Relations[email protected]
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
