Photronics (PLAB) investor relations material

Executive summary

• Revenue for Q1 FY26 reached $225.1 million, up 6.1% year-over-year and 4.3% sequentially, driven by record high-end IC sales and strong demand in Asia, with continued facility expansion and process improvements.

• GAAP diluted EPS was $0.74; non-GAAP diluted EPS was $0.61, both above expectations, with net income attributable to shareholders at $42.9 million.

• Gross margin was 35.0%, consistent with the prior quarter and slightly down from 35.6% a year ago, while operating margin was 24.4%.

• Operational improvements and efficiency initiatives are ongoing, with a focus on quality, yield, and customer experience, and geographic revenue diversification.

Financial highlights

• IC revenue grew 7% year-over-year to $165.3 million, with high-end IC up 19%; FPD revenue was $59.8 million, up 3% year-over-year and sequentially.

• Operating cash flow was $97.3 million, the second highest in company history, representing 43% of revenue.

• Cash, cash equivalents, and short-term investments totaled $636.9 million at quarter end, with $459.1 million related to joint ventures.

• Capital expenditures were $47.6 million in Q1 FY26, with $330 million planned for FY26, focused on U.S., Korea, and Asia expansion and tool upgrades.

Outlook and guidance

• Q2 revenue expected between $212 million and $220 million, reflecting seasonal impact from Chinese New Year.

• Q2 operating margin projected at 22%-24%; non-GAAP diluted EPS guidance is $0.49-$0.55.

• Full-year growth trajectory supported by healthy design starts, ongoing demand, and strategic capex.