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Photronics Q1 EPS rose 17% Y/Y to 61 cents, beating estimates as revenue increased 6%.
PLAB IC sales grew 7% Y/Y on high-end demand; FPD gained on China IT market strength.
Photronics guided Q2 revenue of $212M-$220M with operating margin seen at 22%-24%.
Photronics (PLAB - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 12.96% and increased 17.3% year over year.
Revenues of $225.1 million increased 6.1% year over year and 4.3% sequentially.
PLAB’s Quarter Details
Integrated Circuit revenues increased 5% sequentially and 7% year over year to $165.3 million.
The upside was primarily driven by the higher demand in the IC high-end sales associated with seasonal demand ahead of the Chinese New Year.
Photronics, Inc. Price, Consensus and EPS Surprise
FPD revenues increased 3% on both a year-over-year and a sequential basis to $59.8 million. China's IT market drove significant growth in the Mainstream sub-segment of the FPD segment.
First-quarter fiscal 2026 gross margin contracted 60 basis points (bps) year over year to 35%.
Research & development expenses, as a percentage of revenues, contracted 90 bps year over year to 1.1%. Selling, general, and administrative expenses, as a percentage of revenues, increased 50 bps year over year to 9.5%.
Operating income was $54.9 million, up 5.1% year over year. Operating margin contracted 20 bps year over year to 24.4%.
PLAB’s Balance Sheet & Cash Flow
As of Feb. 1, 2026, cash and cash equivalents and short-term investments were $636.9 million compared with $588.2 million as of Oct. 31, 2025.
For the first quarter, total debt was $0.02 million, which was flat compared with the previous quarter.
Cash generated from operating activities was $97.3 million, and cash invested in organic growth through capital expenditures was $47.6 million.
PLAB’s Q2 2026 Guidance
For the second-quarter of fiscal 2026, Photronics expects revenues between $212 million and $220 million. The company anticipates an operating margin in the range of 22-24% for the second quarter.
Earnings are expected between 49 cents and 55 cents per share.
Zacks Rank & Stocks to Consider
Currently, Photronics carries a Zacks Rank #3 (Hold).
Photronics’s shares have gained 91.7% in the past 12 months compared with the Zacks Computer & Technology sector’s increase of 32%.
Micron Technology shares have gained 355.5% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 26.4% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.
Credo Technology Group shares have gained 122.1% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.
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Photronics Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Photronics (PLAB - Free Report) reported first-quarter fiscal 2026 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 12.96% and increased 17.3% year over year.
Revenues of $225.1 million increased 6.1% year over year and 4.3% sequentially.
PLAB’s Quarter Details
Integrated Circuit revenues increased 5% sequentially and 7% year over year to $165.3 million.
The upside was primarily driven by the higher demand in the IC high-end sales associated with seasonal demand ahead of the Chinese New Year.
Photronics, Inc. Price, Consensus and EPS Surprise
Photronics, Inc. price-consensus-eps-surprise-chart | Photronics, Inc. Quote
FPD revenues increased 3% on both a year-over-year and a sequential basis to $59.8 million. China's IT market drove significant growth in the Mainstream sub-segment of the FPD segment.
First-quarter fiscal 2026 gross margin contracted 60 basis points (bps) year over year to 35%.
Research & development expenses, as a percentage of revenues, contracted 90 bps year over year to 1.1%. Selling, general, and administrative expenses, as a percentage of revenues, increased 50 bps year over year to 9.5%.
Operating income was $54.9 million, up 5.1% year over year. Operating margin contracted 20 bps year over year to 24.4%.
PLAB’s Balance Sheet & Cash Flow
As of Feb. 1, 2026, cash and cash equivalents and short-term investments were $636.9 million compared with $588.2 million as of Oct. 31, 2025.
For the first quarter, total debt was $0.02 million, which was flat compared with the previous quarter.
Cash generated from operating activities was $97.3 million, and cash invested in organic growth through capital expenditures was $47.6 million.
PLAB’s Q2 2026 Guidance
For the second-quarter of fiscal 2026, Photronics expects revenues between $212 million and $220 million. The company anticipates an operating margin in the range of 22-24% for the second quarter.
Earnings are expected between 49 cents and 55 cents per share.
Zacks Rank & Stocks to Consider
Currently, Photronics carries a Zacks Rank #3 (Hold).
Photronics’s shares have gained 91.7% in the past 12 months compared with the Zacks Computer & Technology sector’s increase of 32%.
Micron Technology (MU - Free Report) , MongoDB (MDB - Free Report) , and Credo Technology Group (CRDO - Free Report) are some other better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Micron Technology shares have gained 355.5% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 26.4% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.
Credo Technology Group shares have gained 122.1% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.