Photronics posted robust Q1 financials with revenue of $187 million, exceeding expectations, driven by sustained demand for advanced photomasks. The company raised full-year guidance, signaling confidence in continued growth across global semiconductor supply chains.
- Photronics Q1 revenue reached $187 million, up 12% sequentially
- Gross margin improved to 42.5%, a 2.1 percentage point increase
- Bookings rose 18% year-over-year, driven by demand for 5nm and 3nm photomasks
- Full-year revenue guidance raised to $770M–$790M, up from $740M–$760M
- Customers include SMIC and TSMC, with production expanding in Taiwan, China, and the U.S.
- Strong order backlog and margin resilience signal sustained demand in advanced nodes
Photronics delivered a standout performance in the first quarter, reporting revenue of $187 million, surpassing analyst estimates and marking a 12% sequential increase from Q4 2025. The results were underpinned by heightened demand for high-precision photomasks used in advanced logic and memory chips, particularly in 5nm and 3nm process nodes. The company cited strong order backlogs, with bookings up 18% year-over-year, indicating solid momentum in the semiconductor manufacturing ecosystem. The company’s gross margin expanded to 42.5%, a 2.1 percentage point improvement from the prior quarter, reflecting better capacity utilization and favorable product mix. Photronics attributed this to increased production at its facilities in Taiwan and China, where key customers including SMIC and TSMC continue to ramp advanced node capacity. The company also highlighted progress in expanding its photomask fabrication capabilities in the U.S., aligning with long-term supply chain diversification trends. In its updated guidance, Photronics raised its full-year revenue outlook to a range of $770 million to $790 million, up from the previous estimate of $740 million to $760 million. The revised projection reflects confidence in sustained demand across AI accelerators, high-performance computing, and automotive semiconductor applications. The company emphasized that its customer base remains well-diversified, with exposure to both U.S.-based and Asian-based foundries. The results have drawn attention from investors tracking semiconductor equipment and materials suppliers, with the stock reacting positively in after-hours trading. Analysts note that Photronics’ performance is a leading indicator of broader industry health, particularly for suppliers serving advanced node fabrication. The company’s ability to maintain margin expansion while scaling production positions it as a key beneficiary of the ongoing semiconductor capacity expansion cycle.