Photronics Inc. reported fiscal first‑quarter 2026 results that exceeded analyst expectations, posting a non‑GAAP diluted earnings per share of $0.61 versus the consensus estimate of $0.54—a $0.07 or 13% beat. Total revenue reached $225.1 million, outpacing the most widely cited estimate of $220.09 million by roughly $5 million, a 2.3% upside to expectations.
The strong performance was driven by record revenue in the high‑end integrated circuit (IC) segment, which generated $165.3 million, and robust flat‑panel display (FPD) sales of $59.8 million. These two segments offset a modest decline in mainstream mask sales, allowing the company to maintain a steady gross margin of 35.0% and a net income margin of 12.5%.
Year‑over‑year, revenue grew 6.1% to $225.1 million, while non‑GAAP EPS rose from $0.52 in Q1 2025 to $0.61, reflecting both higher mix and disciplined cost management. The company’s operating cash flow of $97.3 million and cash reserves of $636.9 million underscore its strong liquidity position.
Management guided fiscal Q2 2026 revenue to a range of $212 million to $220 million and non‑GAAP diluted EPS to $0.49 to $0.55, signaling confidence in continued demand for high‑end ICs while acknowledging a slight sequential contraction due to seasonal factors. The guidance aligns with the company’s long‑term growth outlook and its ongoing facility expansion plans in the United States and South Korea.
"Photronics delivered strong results in our fiscal first quarter, achieving record high‑end IC revenue for the second consecutive quarter," said Chairman and CEO George Macricostas. He added that the company remains on track with its facility expansion plans, which, together with continuous process improvements, will diversify its geographic revenue mix as industry regionalization continues.
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