What did Photronics (NASDAQ:PLAB) report in Q2 fiscal 2026 earnings?

Photronics reported fiscal second-quarter 2026 revenue of $209.9 million, down 0.5% year over year and 6.7% sequentially from the previous quarter. GAAP diluted EPS came in at $0.54, while non-GAAP diluted EPS reached $0.42.

Why did Photronics’ (NASDAQ:PLAB) revenue decline sequentially?

The company said semiconductor manufacturers delayed some new chip design releases because fabrication utilization rates remained elevated. In simple terms, many chip factories are still heavily occupied, slowing the rollout of new projects that require Photronics’ photomasks.

What does Photronics (NASDAQ:PLAB) actually do?

Photronics manufactures photomasks, which are critical components used in semiconductor chip production and flat-panel displays. These masks help transfer microscopic circuit patterns onto silicon wafers during the chip manufacturing process.

Why did Photronics’ (NASDAQ:PLAB) Integrated Circuits business weaken?

The Integrated Circuits (IC) segment generated $147.5 million in revenue, down 5% year over year and 11% sequentially. The decline was linked to delays in new semiconductor product launches and utilization pressures at fabrication plants.

Which part of Photronics’ (NASDAQ:PLAB) business performed well?

The Flat Panel Display (FPD) segment remained strong, with revenue increasing 13% year over year to $62.4 million. Growth was supported by demand tied to high-end mobile displays and automotive display technologies.

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Photronics revenue edges lower on soft semiconductor mask demand

Written by Heidi Cuthbert Published May. 28 2026Last Updated May. 28 2026

Photronics (NASDAQ:PLAB) reported a sequential contraction in second-quarter revenue, navigating near-term headwinds in chip-sector product launches even as demand for high-end mobile and automotive display components provided a resilient partial buffer.

The Connecticut-based photomask manufacturer generated revenue of $209.9 million for the fiscal second quarter of 2026, marking a 0.5% decrease year-over-year and a 6.7% decline from the immediate prior quarter.

GAAP net income attributable to shareholders reached $31.4 million, translating to $0.54 per diluted share.

On an adjusted, non-GAAP basis, net income came in at $24.9 million, or $0.42 per diluted share, reflecting product-mix shifts and temporary utilization pressures across its global footprint.

A divisional breakdown reveals diverging trends within the electronic component supply chain.

The company's cornerstone Integrated Circuits (IC) division saw revenue fall 5% year-over-year and 11% sequentially to $147.5 million, a pullback driven by elevated fabrication utilization rates that have delayed new design releases from semiconductor manufacturers.

Conversely, the Flat Panel Display (FPD) segment maintained an upward trajectory, posting revenue of $62.4 million, which represents a 13% gain over the prior year and a 4% sequential improvement.

Photronics retained substantial balance sheet liquidity during the period, ending the quarter with $637.7 million in cash, equivalents, and short-term investments, a metric that includes $477.3 million held by its consolidated joint ventures.

The company generated $47 million in operating cash flow during the three-month window, matching its infrastructure roadmap by routing $45.8 million into capital expenditures to scale high-end advanced node manufacturing capacities.

Looking forward to the third quarter of fiscal 2026, management issued an outlook reflecting the continuation of current market variables.

The company projects third-quarter revenue to fall between $207 million and $215 million.

Operating margin for the upcoming period is anticipated to land between 18% and 20%, while non-GAAP diluted earnings per share are estimated within a target range of $0.39 to $0.45.