Photomask manufacturer Photronics reported fiscal third-quarter 2026 revenue of $216.0 million, exceeding the high end of its guidance and rising 3% sequentially and year-over-year.
The company’s shares rose 23.8% in premarket trading to $36.30, up from the prior close of $29.32. Photronics’ market capitalization stood at approximately $1.9 billion, with a 52-week range of $20.05 to $56.00.
Gross margin expanded to 33.2% from 31.3% in the prior quarter, while operating margin reached 21.1%. Diluted GAAP EPS came in at $0.49, with non-GAAP EPS at $0.50, excluding foreign exchange impacts. Cash, cash equivalents, and short-term investments totaled $672.8 million, up from $637.7 million in Q2 and $575.8 million a year earlier. Debt remained minimal at $3.9 million.
Operating cash flow reached $76.3 million, representing 35% of revenue. Capital expenditures totaled $37.0 million in Q3 and $130 million for the first nine months of fiscal 2026. Full-year fiscal 2026 CapEx guidance was revised to $255–305 million, down from the prior $330 million due to adjusted tool delivery timelines, with a projected capital intensity ratio of 29–35%.
The Integrated Circuit segment generated $154.7 million in revenue, up 5% sequentially and year-over-year. High-end IC revenue reached a record $68.5 million, rising 21% quarter-over-quarter and 28% year-over-year, driven by node migration at 28nm and below. Mainstream IC revenue totaled $86.2 million, declining 5% sequentially and 9% year-over-year.
The Flat Panel Display segment reported $61.4 million in revenue, down 2% sequentially and year-over-year. High-end FPD revenue accounted for 85% of the segment’s total at $52.3 million, covering G10.5+ panels, AMOLED, and LTPS technologies.
Photronics operates 10 facilities worldwide, serving approximately 675 customers and holding roughly 10% market share in the merchant photomask market. The company’s Boise, Idaho facility remains the only high-end capable commercial mask maker in the U.S., while the Allen, Texas facility expansion is expected to recognize initial revenue in Q4 2026.
For fiscal Q4 2026, Photronics guided for revenue of $207–227 million, an operating margin of 19–24%, and non-GAAP diluted EPS of $0.40–$0.56. Diluted shares outstanding are expected to be around 59 million.
