Photronics (PLAB) just posted Q2 2026 results with revenue of US$209.9 million and basic EPS of US$0.54, while the trailing 12 month figures in the dataset show revenue of US$861.2 million and basic EPS of US$2.75. Over recent quarters, revenue in the quarterly data has moved between US$210.4 million and US$225.1 million, with basic EPS ranging from US$0.15 to US$1.07. This gives investors a clear view of how the top line and EPS have tracked ahead of this latest print. With trailing net profit margins in the data at 18.5% and higher than the prior year, this set of numbers keeps the focus squarely on how durable that profitability looks from here.
See our full analysis for Photronics.With the headline figures set, the next step is to see how this earnings profile lines up against the big narratives around Photronics. Some long held views may be reinforced and others could be challenged by the latest data.
See what the community is saying about Photronics
Margins Holding Up In The Background
- Over the last 12 months, Photronics generated US$861.2 million in revenue and US$159.1 million in net income, which works out to an 18.5% net margin compared with 14% in the prior year period cited in the data.
- Consensus narrative talks about heavy capital spending and higher tool replacement needs potentially pressuring profitability, yet the trailing margin and 32.3% earnings growth over the past year sit alongside that view in a few interesting ways:
- On one hand, five year earnings growth of 16.8% per year and an 18.5% margin line up with the bullish idea that investments in advanced production and global capacity have supported earnings power so far.
- On the other, analysts in the same dataset forecast earnings to decline by an average of 13.3% per year, which directly contrasts with the trailing growth pace that bulls point to when they highlight multi year profit momentum.
Bulls looking at these earnings and margin trends often point to future potential from advanced nodes and display markets, and you can see where that enthusiasm comes from in the numbers, even if the forward projections in this dataset are more cautious. 🐂 Photronics Bull Case
Valuation Signal Versus DCF Check
- The stock is cited on a trailing P/E of 12.6x, cheaper than peers at 92.7x, the US Semiconductor industry at 68.2x, and the US market at 18.9x, while a DCF fair value of US$22.13 sits below the current share price of US$34.02 in the data.
- Bears often focus on the gap between the current share price and DCF fair value, and the earnings forecasts, and the figures here give them several concrete talking points:
- The DCF comparison in the dataset shows the stock trading above the US$22.13 DCF fair value, which lines up with the cautious view that the current US$34.02 price already bakes in a lot of future execution.
- Forecast earnings declines of about 13.3% per year and revenue growth of 3.9% per year versus the 11.9% market rate support the bearish argument that a low P/E alone does not automatically signal a bargain if growth expectations are softer.
Investors who are worried about the gap between the current price and DCF fair value, as well as the softer earnings forecasts, often dig deeper into the cautious arguments before deciding how much weight to put on the low P/E signal. 🐻 Photronics Bear Case
Quarterly Earnings Swing Against Longer Trend
- Within the last few quarters, basic EPS has ranged from US$0.15 to US$1.07, while the latest Q2 2026 print came in at US$0.54, set against trailing 12 month EPS of US$2.75 and net income of US$159.1 million.
- The consensus narrative highlights both growth projects and risks like customer concentration and cyclical swings, and the pattern in these numbers shows how that mix plays out:
- Quarterly EPS bouncing between US$0.15 and US$1.07 alongside a 1 to 3 week order backlog window in the commentary illustrates how exposed Photronics can be to short term design cycles, even while the trailing figures show multi year earnings growth.
- At the same time, trailing revenue near US$861.2 million and 32.3% earnings growth over the last year support the idea that broader exposure to IC and display markets has supplied enough opportunities to keep the overall earnings trend positive in the historical data despite those quarterly swings.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Photronics on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With all these mixed signals around growth, margins, and valuation, how do they stack up against the risks and potential rewards that matter most to you right now? If you want to quickly stress test your own view against both sides of the argument, start by weighing the 3 key rewards and 3 important warning signs.
See What Else Is Out There
Photronics combines a low trailing P/E with cautious earnings forecasts, a DCF value below the current share price, and fairly volatile quarterly EPS.
If you are uneasy about paying up where earnings expectations and valuation signals do not fully align, it is worth checking stocks in the 46 high quality undervalued stocks that currently look better supported by their fundamentals.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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