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PLAB Q2 Earnings Miss on Delayed Semiconductor Design Releases
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Key Takeaways
PLAB posted Q2 FY26 non-GAAP EPS of $0.42 on $209.9M revenues, both below consensus.
Photronics blamed design-release delays on high fab use, memory constraints, OEM costs and geopolitics.
PLAB guided Q3 revenues of $207-$215M, operating margin of 18-205, and non-GAAP EPS of $0.39-$0.45.
Photronics (PLAB - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 53 cents by 20.75% but increased 5% year over year.
Revenues of $209.94 million decreased 0.5% year over year and missed the Zacks Consensus Estimate of $217 million by 3.4%.
PLAB’s Quarter Details
Integrated Circuit revenues declined 5% year over year and 11% sequentially to $147.5 million. The softness reflected temporary delays in semiconductor design releases. Management attributed the delays to elevated fab utilization rates, memory supply constraints and related OEM cost pressures, as well as geopolitical uncertainty.
Flat Panel Display revenues increased 13% year over year and 4% sequentially to $62.4 million. Management highlighted strength in higher-end display activity, supported by complex and larger mask sizes, as well as continued momentum in AMOLED-related demand.
Photronics, Inc. Price, Consensus and EPS Surprise
Second-quarter fiscal 2026 gross margin contracted to 31.3% from 36.9% in the year-ago quarter.
Selling, general and administrative expenses increased to $20.8 million from $18.1 million a year ago. Research and development expenses declined to $2.8 million from $4.1 million in the year-ago quarter.
Operating income totaled $42.2 million, down from $55.7 million a year ago. The operating margin also declined year over year to 20.1% from 26.4%, reflecting weaker IC mix and operating leverage impacts.
PLAB’s Balance Sheet & Cash Flow
As of May 3, 2026, cash, cash equivalents and short-term investments were $637.7 million compared with $636.9 million as of Feb. 1, 2026.
Total debt was $3.9 million at quarter's end, up from $0.02 million in the prior quarter.
Cash generated from operating activities was $47 million in the quarter. Cash invested in organic growth through capital expenditures was $45.8 million, reflecting continued spending on the company’s U.S. and Korea expansion initiatives, end-of-life tool upgrades and facility optimization.
PLAB’s Q3 2026 Guidance
For the third quarter of fiscal 2026, Photronics expects revenues between $207 million and $215 million. The company anticipates an operating margin in the range of 18-20% for the quarter.
Non-GAAP earnings are expected between 39 cents and 45 cents per share.
PLAB’s Zacks Rank & Stocks to Consider
Currently, Photronics carries a Zacks Rank #3 (Hold).
Micron Technology shares have soared 240.2% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 148.1% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4.
Amphenol shares have gained 10.1% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.
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PLAB Q2 Earnings Miss on Delayed Semiconductor Design Releases
Key Takeaways
Photronics (PLAB - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 53 cents by 20.75% but increased 5% year over year.
Revenues of $209.94 million decreased 0.5% year over year and missed the Zacks Consensus Estimate of $217 million by 3.4%.
PLAB’s Quarter Details
Integrated Circuit revenues declined 5% year over year and 11% sequentially to $147.5 million. The softness reflected temporary delays in semiconductor design releases. Management attributed the delays to elevated fab utilization rates, memory supply constraints and related OEM cost pressures, as well as geopolitical uncertainty.
Flat Panel Display revenues increased 13% year over year and 4% sequentially to $62.4 million. Management highlighted strength in higher-end display activity, supported by complex and larger mask sizes, as well as continued momentum in AMOLED-related demand.
Photronics, Inc. Price, Consensus and EPS Surprise
Photronics, Inc. price-consensus-eps-surprise-chart | Photronics, Inc. Quote
Second-quarter fiscal 2026 gross margin contracted to 31.3% from 36.9% in the year-ago quarter.
Selling, general and administrative expenses increased to $20.8 million from $18.1 million a year ago. Research and development expenses declined to $2.8 million from $4.1 million in the year-ago quarter.
Operating income totaled $42.2 million, down from $55.7 million a year ago. The operating margin also declined year over year to 20.1% from 26.4%, reflecting weaker IC mix and operating leverage impacts.
PLAB’s Balance Sheet & Cash Flow
As of May 3, 2026, cash, cash equivalents and short-term investments were $637.7 million compared with $636.9 million as of Feb. 1, 2026.
Total debt was $3.9 million at quarter's end, up from $0.02 million in the prior quarter.
Cash generated from operating activities was $47 million in the quarter. Cash invested in organic growth through capital expenditures was $45.8 million, reflecting continued spending on the company’s U.S. and Korea expansion initiatives, end-of-life tool upgrades and facility optimization.
PLAB’s Q3 2026 Guidance
For the third quarter of fiscal 2026, Photronics expects revenues between $207 million and $215 million. The company anticipates an operating margin in the range of 18-20% for the quarter.
Non-GAAP earnings are expected between 39 cents and 45 cents per share.
PLAB’s Zacks Rank & Stocks to Consider
Currently, Photronics carries a Zacks Rank #3 (Hold).
Micron Technology (MU - Free Report) , Ciena (CIEN - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and CIEN each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 240.2% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 148.1% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4.
Amphenol shares have gained 10.1% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.