Photronics (PLAB) Shares Tumble 39.5% After Q1 Miss and Weak Guidance on Chip Design Delays

Photronics (NASDAQ:PLAB) shares slumped 39.5% to $32.35 on June 1, 2026, after the photomask manufacturer reported fiscal first-quarter revenue of $209.9 million, flat year-over-year and missing Wall Street estimates. Non-GAAP earnings of $0.42 per share came in 20% below consensus. Second-quarter revenue guidance of $211 million also underwhelmed, falling 3.4% short of analysts’ forecasts. Management blamed delays in semiconductor design releases, which depressed fab utilization rates, along with memory supply constraints and geopolitical uncertainty. CEO George Macricostas said the anticipated post-Chinese New Year seasonal recovery did not materialize, leading to a 5% drop in integrated circuit revenue and a sharp decline in operating margin. CFO Eric Rivera cautioned that visibility remains limited, with a typical backlog of only one to three weeks. The company’s outlook depends on a recovery in design activity and the successful ramp-up of advanced U.S. and Korea facilities.