Photronics reported a record mix of high-end integrated-circuit photomask revenue during the fiscal third quarter of 2026 as semiconductor customers continued migrating toward more advanced manufacturing nodes.
Total revenue increased 2.7% year-over-year and 2.9% sequentially to $216 million.
IC revenue increased 5% both year-over-year and sequentially to $154.7 million, while flat-panel-display revenue declined 2% to $61.4 million.
Within the IC business, high-end products reached a record 44% of total IC revenue.
Photronics attributed the mix shift to continued high semiconductor fab utilization and node migration trends.
The higher-end mix is significant because advanced photomasks generally carry greater technological complexity and value than mainstream products.
GAAP net income attributable to Photronics shareholders increased to $28.9 million, or $0.49 per diluted share, from $22.9 million, or $0.39, a year earlier.
Non-GAAP net income was $29.4 million, essentially unchanged year-over-year, while non-GAAP EPS was $0.50 compared with $0.51.
Photronics generated $76.3 million of cash from operating activities and invested $37 million in capital expenditures.
Cash, cash equivalents and short-term investments totaled $672.8 million at quarter-end.
For the fiscal fourth quarter, the company expects revenue of $207 million to $227 million and operating margin of 19% to 24%.
KEY QUOTE:
“Continued high fab utilization rates throughout the industry have been a positive influence toward node migration trends, resulting in a record percentage for our high-end I.C. business at 44% of total I.C. revenue.”
George Macricostas, Chairman and CEO of Photronics
