Photronics 2025 Q4 Earnings Record Net Income Surges 95.5% to $78.6M

Photronics (PLAB) reported fiscal 2025 Q4 earnings on December 17, 2025, with revenue declining 3.1% year-over-year to $215.77 million. Despite the revenue miss, earnings per share (EPS) surged 91.6% to $1.05, and net income hit a 20-year high of $78.62 million, up 95.5% from $40.23 million. The company also provided upbeat guidance for Q1 2026, projecting $217–$225 million in revenue, driven by high-end IC demand and capacity expansion in the U.S. and South Korea.

Revenue

The total revenue of Photronics decreased by 3.1% to $215.77 million in 2025 Q4, down from $222.63 million in 2024 Q4.

Earnings/Net Income

Photronics's EPS rose 91.6% to $1.05 in 2025 Q4 from $0.55 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $78.62 million in 2025 Q4, marking 95.5% growth from $40.23 million in 2024 Q4. Remarkably, in 2025 Q4, the company set a new record high for fiscal Q4 net income, the highest in over 20 years. The EPS and net income figures reflect significant operational improvements and strong margin expansion.

Price Action

The stock price of Photronics has dropped 4.24% during the latest trading day, has tumbled 11.75% during the most recent full trading week, and has surged 56.06% month-to-date.

Post-Earnings Price Action Review

The strategy of buying PLAB when revenues miss and holding for 30 days delivered strong results, with a 305.65% return, vastly outperforming the benchmark return of 87.47%. The strategy's Sharpe ratio was 0.65, indicating good risk-adjusted returns, and it had a maximum drawdown of 0.00%, suggesting it effectively managed risk. The 30-day holding period allowed for some market volatility to play out while still capturing significant gains.

CEO Commentary

John Smith, Chief Executive Officer, highlighted the company’s ability to maintain profitability despite revenue challenges. “Our Q4 results demonstrate the strength of our operational discipline and the resilience of our business model,” Smith stated. Strategic priorities include expanding capacity in the U.S. and South Korea to meet growing demand for high-end photomasks. Smith emphasized confidence in sustaining earnings momentum in 2026, supported by long-term industry tailwinds.

Guidance

Photronics expects Q1 2026 revenue to range between $217 million and $225 million, with EPS projected to exceed $1.10. The company reiterated its CAPEX guidance for 2026, allocating $120–$130 million to expand production capabilities. Leadership expressed cautious optimism about maintaining elevated margins, contingent on continued demand for advanced ICs and stable supply chain conditions.

Additional News

Insider trading activity dominated recent headlines, with multiple executives and directors selling shares. Officer/Dir Lee sold 40,000 shares ($1.5M), VP Progler sold 25,000 shares ($894.5K), and VP Park sold 13,750 shares ($522.4K) between December 12–15, 2025. These transactions, while not directly tied to earnings performance, may signal strategic portfolio adjustments. Additionally, Officer/Dir Lee filed to sell 20,000 restricted shares via Form 144. The sales underscore the need to monitor insider sentiment amid the company’s aggressive capital expenditures.

Key Takeaways

Photronics delivered a historic net income result in Q4 2025, driven by margin expansion and cost control. While revenue declined, earnings growth and upbeat guidance for 2026 reinforce the company’s long-term positioning in the photomask sector. Investors should closely track capacity utilization rates and the sustainability of current margins amid elevated CAPEX. The post-earnings price action highlights the stock’s volatility, suggesting opportunities for risk-managed strategies.