Camtek Ltd. (CAMT) shares plummeted 10.83% during intraday trading on Tuesday, extending losses from the pre-market session following the release of the company's first-quarter financial results for 2026.

The semiconductor equipment maker reported a decline in key profitability metrics despite posting slightly higher revenues. Non-GAAP net income fell to $0.70 per diluted share from $0.79 a year earlier, representing an 11% decline. GAAP net income dropped 8% to $31.6 million, while operating income saw a sharper decline of 17%. Gross margins also compressed compared to the prior year period.

While the company's Q1 revenue of $121.7 million exceeded analyst expectations and showed year-over-year growth of 2.5%, and management provided strong Q2 revenue guidance of $129-131 million, investors appeared focused on the deteriorating profitability metrics in the quarterly report. The company also projected over 25% revenue growth in the second half of 2026 versus the first half, but this optimistic outlook failed to offset concerns about near-term earnings pressure.