Photronics Inc. (NASDAQ:PLAB) stock gained on Wednesday after the company released its fiscal first-quarter 2026 financial report.
The company reported an adjusted EPS of 61 cents, topping the Wall Street view of 54 cents.
Quarterly revenues of $225.07 million are up 6.1% year-over-year (Y/Y) and 4.3% quarter-over-quarter.
Sales topped the analyst consensus estimate of $220.64 million.
Integrated Circuits (IC) revenue reached $165.3 million, rising 7% Y/Y and 5% sequentially.
Flat Panel Displays (FPD) revenue was $59.8 million, up 3% Y/Y and 14% sequentially.
The gross margin declined by 60 bps to 35.0%. The operating margin fell by 20 bps to 24.4%.
Operating cash flow was $97.3 million in the quarter under review.
Cash invested in organic growth through capital expenditures was $47.6 million.
Cash and short-term investments balance at the end of the quarter was $636.9 million.
Chairman and CEO George Macricostas said Photronics delivered strong first-quarter results, achieving record high-end IC revenue for the second straight quarter.
He added that the company remains on schedule with its facility expansion plans and continues to improve processes and execution, positioning Photronics to diversify its geographic revenue mix as the industry increasingly regionalizes.
Outlook
For the second quarter, Photronics expects revenue of $212.00 million to $220.00 million, versus the analyst consensus estimate of $218.09 million.
The company expects adjusted EPS of 49 cents and 55 cents compared to the analyst consensus estimate of 50 cents.
PLAB Price Action: Photronics shares were up 5.10% at $39.92 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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