Photronics raises FY26 capex 65% to $330M as gross margin compresses 370bp on cost inflation

Filed June 10, 2026 · Period ending May 3, 2026 · Compared to 10-Q Jun 10, 2025 · ~1 min read

Key Changes

• high

  Capital spending guidance jumped from $200M in FY25 to $330M in FY26, funding advanced mask-making equipment to serve next-gen semiconductor nodes and replace aging systems.

  MD&A: Capital Expenditure Guidance verify on EDGAR →
• high

  Gross margin fell 310 basis points year-over-year to 33.2% (from 36.3%), driven by higher labor, material, and manufacturing costs without offsetting revenue growth.

  MD&A: Gross Margin verify on EDGAR →
• medium

  New U.S. tax law (OBBBA) enacted July 2025 applies to FY26; company incorporated estimated impacts into tax provision but did not quantify dollar effect.

  MD&A: Tax Law Change verify on EDGAR →