Photronics Inc. (PLAB) reported fiscal third-quarter 2026 revenue of $216 million, up 3% year-over-year and 3% sequentially, exceeding the $208.75 million consensus estimate by $7.25 million. The company’s integrated circuit (IC) revenue rose 4.8% to $155 million, accounting for 72% of total revenue, with high-end IC sales reaching a record 44% of IC revenue.
Flat panel display (FPD) revenue totaled $61 million, slightly below the prior quarter but near all-time highs. Mainstream business revenue declined to $86 million amid ongoing node migration trends. Diluted GAAP earnings per share came in at $0.49, while non-GAAP EPS, excluding foreign exchange impacts, was $0.50. Gross margin improved to 33%, and operating margin reached 21%.
Operating cash flow for the quarter was $76 million, equivalent to 35% of revenue, while capital expenditures totaled $37 million. Total cash and short-term investments rose by $35 million to $673 million, including $504 million held within joint ventures where Photronics maintains a 50.1% ownership stake. The company’s market capitalization stands at $1.73 billion, with a P/E ratio of 10.79 and a beta of 1.37.
Photronics shares surged 23.32% in premarket trading to $36.16, following a prior close of $29.32. The stock has traded between $20.05 and $56.00 over the past 52 weeks.
For the fiscal fourth quarter, Photronics guided revenue to a range of $207 million to $227 million, with a midpoint of $217 million. Non-GAAP diluted EPS is projected between $0.40 and $0.56, with an operating margin guidance of 19% to 24%. Capital expenditure guidance for fiscal 2026 was revised downward to $255 million–$305 million, from a prior range of $330 million, reflecting timing shifts in vendor tool deliveries and customer orders.
Chairman and CEO George Macricostas noted that the quarter’s revenue growth reflected a recovery in semiconductor design releases delayed from the prior quarter. High-end IC business now represents a record 44% of IC revenue, he added. CFO Eric Rivera emphasized the company’s cautious approach to EUV mask investments, stating that Photronics prefers to enter the merchant market at the right time to ensure appropriate returns.
The company also highlighted progress in its Allen, Texas facility, expected to begin revenue generation in late fiscal Q3, and its Korea expansion toward 8nm capability. Photronics’ newest advanced FPD writer entered mass production during the quarter, achieving strong customer traction amid robust OLED demand for high-end consumer electronics.
