Photronics (PLAB) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue reached $216 million, up 3% year-over-year and sequentially, driven by recovery in delayed semiconductor design releases and strong high-end IC and FPD demand.

• Gross margin was 33.2%, reflecting operational leverage and favorable product mix.

• High-end IC business accounted for a record 44% of IC revenue, benefiting from node migration at 28 nm, 22 nm, and 14 nm.

• Ongoing investments in U.S. and Korea are on track, with Allen facility targeting initial revenue late in the fiscal year and Korea expansion progressing for 8 nm capabilities.

• Net income attributable to shareholders was $28.9 million ($0.49 per diluted share), up from $22.9 million ($0.39) year-over-year.

Financial highlights

• Q3 revenue: $216 million, up 3% year-over-year and sequentially.

• IC revenue: $154.7 million, up 5% year-over-year and sequentially, with high-end IC accounting for 44% of IC revenue.

• FPD revenue: $61.4 million, down 2% year-over-year and sequentially, but near all-time highs.

• Gross margin: 33.2%; operating margin: 21.1%.

• Diluted GAAP EPS: $0.49; non-GAAP diluted EPS: $0.50.

• Operating cash flow: $76.3 million (35% of revenue); CapEx: $37 million for the quarter.

• Cash and short-term investments at quarter-end: $672.8 million.

Outlook and guidance

• Fiscal Q4 revenue guidance: $207 million–$227 million.

• Q4 operating margin expected between 19% and 24%; non-GAAP diluted EPS guidance: $0.40–$0.56.

• Fiscal 2026 CapEx guidance updated to $255 million–$305 million, with some spending potentially shifting to fiscal 2027.

• Fiscal 2027 CapEx guidance to be provided in Q4 earnings release.