Photronics Q2 revenue, profit miss estimates on delayed releases, memory supply crunch

Photronics

28/05/2026 12:09

Overview
U.S. photomask maker's fiscal Q2 revenue fell 0.5% yr/yr, adjusted EPS declined sequentially
Company cites delayed design releases and memory supply constraints as near-term headwinds
FPD revenue rose 13% yr/yr while IC revenue fell 5% yr/yr

Outlook
Photronics expects Q3 revenue between $207 mln and $215 mln
Company sees Q3 operating margin between 18% and 20%
Photronics forecasts Q3 non-GAAP diluted EPS between $0.39 and $0.45

Result Drivers
DELAYED DESIGN RELEASES - Co said certain design releases were delayed due to elevated fab utilization rates, extending new product launch timelines
MEMORY SUPPLY CONSTRAINTS - Co cited memory supply constraints and related cost pressures for OEMs as near-term headwinds
GEOPOLITICAL UNCERTAINTY - Co said geopolitical uncertainty contributed to near-term headwinds

Company press release: ID:nGNX3s0fQ3

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$209.94 mln
$216.66 mln (2 Analysts)
Q2 Adjusted EPS
Miss
$0.42
$0.54 (2 Analysts)
Q2 Net Income
 
$43.25 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for Photronics Inc is $48.00, about 10.3% below its May 27 closing price of $53.51
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)