Photronics Posts 19% High-End IC Revenue Growth, Guides Q2 $212–$220M
Photronics reported Q1 revenue of $225 million and non-GAAP EPS of $0.61, driven by a 19% year-over-year increase in high-end IC revenue to $71 million. The company guided 2026 CapEx at $330 million and Q2 revenue of $212–$220 million, planning capacity expansions in the U.S. and Korea for 2027 production.
1. Q1 Financial Results
Photronics delivered first-quarter revenue of $225 million, a 4% sequential increase, and reported GAAP diluted EPS of $0.74 alongside non-GAAP EPS of $0.61. Gross margin reached 35%, and operating cash flow was $97 million, representing 43% of revenue.
2. Segment Performance
High-end IC revenue rose 19% year-over-year to $71 million, while mainstream IC revenue held flat at $94 million. Flat panel display revenue climbed 3% to $60 million, driven by mainstream demand for China IT displays and early G8.6 AMOLED projects.
3. Operational and Expansion Plans
Management emphasized operational priorities including quality improvements, yield enhancements and faster cycle times under the CEO’s agenda. Expansion projects in Allen, U.S., and a Korea facility are underway, with customer qualifications at Allen expected in the second half of 2026 and volume production in both regions slated for 2027.
4. Outlook and Capital Allocation
The company set 2026 CapEx at $330 million, with $48 million spent in Q1 on FPD equipment upgrades and U.S. and Korea special projects. Q2 revenue is guided at $212–$220 million with non-GAAP EPS of $0.49–$0.55, reflecting holiday seasonality but sustained design activity.