Camtek Ltd. (CAMT) shares experienced a significant pre-market decline of 9.24% on Tuesday following the release of the company's first-quarter financial results for 2026.
The semiconductor equipment maker reported a decline in profitability despite posting slightly higher revenues. Non-GAAP net income fell to $0.70 per diluted share from $0.79 a year earlier, while GAAP net income dropped 8% to $31.6 million. Operating income saw a sharper decline of 17%, and gross margins 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, and while management provided strong Q2 revenue guidance of $129-131 million and projected over 25% revenue growth in the second half of 2026, investors appeared focused on the deteriorating profitability metrics in the quarterly report.