Photronics, Inc. (PLAB) Earnings
Photronics, Inc. is expected to report next earnings on December 9, 2026 (in NaN days), with a consensus EPS estimate of $0.48. PLAB has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +17.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 26, 2026 | $0.41 | $0.50 | +22.9% | $216M | +3.4% |
| May 28, 2026 | $0.53 | $0.42 | -20.5% | $210M | -2.9% |
| Feb 27, 2026 | $0.54 | $0.73 | +36.1% | $225M | +2.5% |
| Dec 10, 2025 | $0.46 | $0.60 | +31.6% | $216M | +4.8% |
| Aug 27, 2025 | $0.39 | $0.51 | +30.1% | $210M | +2.9% |
| May 28, 2025 | $0.48 | $0.40 | -16.5% | $211M | -3.8% |
| Feb 26, 2025 | $0.47 | $0.52 | +10.9% | $212M | -5.4% |
| Dec 11, 2024 | $0.53 | $0.59 | +12.4% | $223M | +1.9% |
| Aug 29, 2024 | $0.56 | $0.51 | -8.6% | $211M | -3.4% |
| May 22, 2024 | $0.55 | $0.46 | -16.4% | $217M | -3.9% |
| Feb 21, 2024 | $0.49 | $0.42 | -14.1% | $216M | -1.9% |
| Dec 13, 2023 | $0.53 | $0.72 | +35.1% | $227M | +1.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · August 26, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- **IC Recovery & Node Migration**: Revenue growth driven by delayed semiconductor design releases moving into production in Q3. High wafer utilization is prioritizing profitable projects, accelerating migration from mainstream to high-end nodes (28nm, 22nm, 14nm). - **Geographic Expansion**: U.S. (Allen) and Korea investments are on track. Allen facility targets initial revenue late in the fiscal quarter, contributing to FY2027+ revenue. Korea’s 8nm expansion cleanroom preparation is substantially complete. - **FPD Strength**: Demand remains strong for high-end OLEDs in flagship smartphones. Received additional G8.6 AMOLED orders. Advanced FPD writer entered mass production with strong traction. - **EUV Strategy**: Pragmatic approach focusing on partnerships for EUV R&D masks rather than immediate full turnkey merchant market entry. Waiting for economic viability before significant CapEx investment. - **Capital Allocation**: Strong balance sheet with $673 million in cash/short-term investments. Priorities include reinvestment, strategic opportunities, and shareholder returns. May use borrowing to supplement liquidity for EUV and capacity expansions.
Guidance
- **Fiscal Q4 Revenue**: Updated guidance range widened to $207–$227 million due to uncertain visibility caused by high fab utilization, memory constraints, and geopolitical issues. - **Fiscal Q4 Operating Margin**: Estimated between 19% and 24%. - **Fiscal Q4 Non-GAAP Diluted EPS**: Estimated between $0.40 and $0.56 per share. - **FY2026 CapEx**: Revised downward to a range of $255–$305 million (from prior $330 million guidance) due to vendor delivery timing fluctuations; unspent amounts may carry over to FY2027.
Segment performance
Total revenue was $216 million, up 3% year-over-year and sequentially. The IC segment generated $155 million (72% of total revenue), increasing nearly 5% YoY/Seq; the high-end portion accounted for 44% of IC revenue ($68.2 million), while mainstream declined to $86 million. The FPD segment generated $61 million (28% of total revenue), declining modestly but remaining near all-time highs.
Risks & headwinds
- **Design Release Delays**: Continued impact of elevated fab utilization rates, memory constraints, and geopolitical uncertainty on the timing of new semiconductor design releases. - **Revenue Volatility**: High-end mask sets carry significantly higher ASPs; small order variations can materially impact quarterly revenue and earnings. - **Margin Compression**: Gross margins influenced by volume, product mix, and geographical mix of revenue recognition. - **Competitive Pressure**: Intense competition in China’s mainstream market from local mask houses, though Photronics maintains a technology leadership advantage in the high-end.
Analyst Q&A
Q: Christian Schwab asked about the nature of EUV partnerships and when Photronics expects to be fully ramped on the technology.
A: CEO George Macricostas clarified that partnerships are specific to EUV. The company is monitoring the merchant market's development to ensure economic viability before entering. They are currently supplying EUV R&D masks via industry partners and plan to report more on full turnkey capabilities once the market matures.
Q: Max Michaelis asked why the focus is on EUV now and how much incremental CapEx is expected beyond the revised $255-$305 million range.
A: CFO Eric Rivera explained that while they provide services via partnerships, they are waiting for the merchant market to develop before making significant internal CapEx investments. They aim to ensure an appropriate internal rate of return before diving into the high-cost area of full turnkey EUV processing.
Q: Daniel Yermakon asked why the Q4 revenue guidance range was widened to ~$20 million compared to previous quarters.
A: Management cited persistent conditions from Q2—high fab utilization, high memory costs, and geopolitical issues—that limit visibility into design release timelines. Additionally, George Macricostas noted that high-end mask sets represent large dollar amounts, meaning even one or two orders can swing revenue by millions, leading to choppier, less predictable results until stability returns.
Q: Ghoshy Shree asked if the decline in China business was mainly in mainstream or also high-end, and whether customers order complete mask sets or partial respins.
A: Eric Rivera stated that competition in China is primarily in the mainstream sector, where local competitors exist. Photronics focuses its efforts on the high-end where it holds a technological advantage. Regarding orders, he confirmed that customers typically order complete mask sets rather than partial respins.
Q: Ghoshy Shree questioned gross margin compression despite better product mix, asking what cost drivers were at play.
A: Eric Rivera attributed the margin dynamics to a combination of factors, primarily volumes and mix. He specified that this includes not just product mix but also the geographical mix of where earnings and revenue occur, impacting overall cost structures relative to sales.