The miss on both EPS and revenue, combined with weak guidance, signals a near-term demand trough. Monitor the FQ3 earnings call for updates on design release timing and the Allen, TX facility ramp. The elevated capex cycle (~$330M FY2026) pressures FCF in the near term.
Price Chart
Executive Summary
Photronics reported FQ2 2026 non-GAAP EPS of $0.42, missing the $0.53 consensus by 20.8%, and revenue of $209.9M, missing the $216.0M consensus by 2.8%. Revenue declined 0.5% YoY and 6.7% sequentially, driven by delayed semiconductor design releases due to high fab utilization and memory constraints. Guidance for FQ3 2026 (revenue $207M-$215M, non-GAAP EPS $0.39-$0.45) came in below the prior quarter's actuals, signaling continued near-term headwinds.
Key Financial Metrics
Key Facts
- Non-GAAP EPS of $0.42 missed consensus of $0.53 by 20.8%.
- Revenue of $209.9M missed consensus of $216.0M by 2.8% and declined 0.5% YoY.
- IC revenue fell 5% YoY to $147.5M; FPD revenue grew 13% YoY to $62.4M.
- Gross margin contracted to 31.3% from 36.9% a year ago.
- FQ3 2026 guidance: revenue $207M-$215M, non-GAAP EPS $0.39-$0.45, below FQ2 actuals.
- Operating cash flow was $47.0M, down from $97.3M in FQ1 2026.
- Capex of $45.8M remained elevated; full-year capex guided to ~$330M.
Financial Impact
Non-GAAP EPS miss of $0.11 (20.8%) vs consensus; revenue miss of $6.1M (2.8%) vs consensus.
Risk Factors
- Delayed semiconductor design releases may persist into FQ3, pressuring revenue.
- Elevated capex for U.S. and Korea expansions could weigh on free cash flow.
- Geopolitical uncertainty and memory supply constraints remain headwinds.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001140361-26-023057 |
| Document: ef20074970_ex99-2.htm | 0001140361-26-023057 |
| Document: ef20074970_8k.htm | 0001140361-26-023057 |
| Document: 0001140361-26-023057-index-headers.html | 0001140361-26-023057 |
| Document: 0001140361-26-023057-index.html | 0001140361-26-023057 |
| Document: 0001140361-26-023057.txt | 0001140361-26-023057 |
| 8-K Data (Synthetic) | 0001140361-26-023057 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 1, 2026 25d ago | Insider Cluster | $31.49 | awaiting T+60 | — | $28.88 (+8.30%) |
Oct 1, 2026 25d ago | Insider Cluster | $31.49 | awaiting T+60 | — | $28.88 (+8.30%) |
Sep 29, 2026 27d ago | Insider Cluster | $30.78 | awaiting T+60 | — | $28.88 (+6.19%) |
Aug 26, 2026 8w ago | 8-K | $30.25 | awaiting T+60 | — | $28.88 (−4.55%) |
Aug 12, 2026 10w ago | Press Release | $33.48 | awaiting T+60 | — | $28.88 (−13.75%) |
May 28, 2026 21w ago | 8-K | $34.02 $30.51 | ▲ +10.32% | ▲ +12.05% | $28.88 (+15.12%) |
May 14, 2026 23w ago | Press Release | $50.02 $32.99 | ▼ −34.05% | ▼ −38.56% | $28.88 (−42.27%) |
May 13, 2026 23w ago | Press Release | $51.86 $32.65 | ▼ −37.04% | ▼ −41.48% | $28.88 (−44.32%) |
Apr 17, 2026 27w ago | 144 | $48.38 $29.47 | ▼ −39.09% | ▼ −45.23% | $28.88 (−40.32%) |
Apr 13, 2026 28w ago | Insider Cluster | $45.71 $29.90 | ▲ +34.59% | ▲ +43.30% | $28.88 (+36.83%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers