Tower Semiconductor (NASDAQ:TSEM) Announces Earnings Results, Beats Estimates By $0.03 EPS

Tower Semiconductor (NASDAQ:TSEM) issued its quarterly earnings data on Tuesday. The semiconductor company reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.03, Zacks reports. Tower Semiconductor had a net margin of 15.13% and a return on equity of 8.54%. During the same period in the previous year, the business posted $0.41 earnings per share. The firm’s quarterly revenue was up 23.7% compared to the same quarter last year.

Here are the key takeaways from Tower Semiconductor’s conference call:

• Record second-quarter results included $460 million in revenue, up 11% sequentially and 24% year over year, with record 30% gross, 20% operating, and 20% net margins.
• Management guided third-quarter revenue to $520 million and raised its 2028 model to $3.6 billion in revenue, $1.63 billion in gross profit, and $1.2 billion in net profit, citing stronger demand and product mix.
• Silicon photonics revenue rose more than 60% sequentially and 270% year over year, with a $680 million annualized second-quarter run rate and a target of $1 billion in the fourth quarter; customer contracts represent approximately $1.3 billion of 2027 SiPho revenue.
• Tower announced a Japan expansion with METI support, including repurposing the Arai facility and building an adjacent 300-millimeter fab expected to eventually quadruple Japanese 300-millimeter output for silicon photonics, silicon germanium, and advanced optical packaging.
• The outlook depends on execution risks including wafer pricing, cost assumptions, 85% fab utilization, and the timing of equipment installation and customer qualifications; approximately half of the company’s $920 million capacity investment remains to be paid during the second half of 2026 and 2027.

Tower Semiconductor Price Performance

Shares of NASDAQ:TSEM traded up $5.21 during trading on Tuesday, hitting $239.53. 6,324,389 shares of the company were exchanged, compared to its average volume of 1,912,271. The company has a quick ratio of 4.92, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. Tower Semiconductor has a 1-year low of $45.51 and a 1-year high of $319.94. The company has a market capitalization of $26.94 billion, a P/E ratio of 111.41 and a beta of 0.90. The business’s 50 day moving average is $247.23 and its 200-day moving average is $199.20.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. Wedbush raised their target price on shares of Tower Semiconductor from $140.00 to $300.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. UBS Group reiterated a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Benchmark reissued a “buy” rating on shares of Tower Semiconductor in a research report on Wednesday, July 15th. Finally, Susquehanna raised their price objective on Tower Semiconductor from $180.00 to $330.00 and gave the stock a “positive” rating in a research note on Thursday, May 14th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $276.75.

Tower Semiconductor News Roundup

Here are the key news stories impacting Tower Semiconductor this week:

• Positive Sentiment: Record Q2 performance: Tower reported record quarterly revenue and profitability. Reported EPS was $0.79, above the $0.76 consensus estimate, while adjusted EPS was cited at $0.88 versus an expected $0.67. Revenue rose 23.7% year over year, reflecting improving demand across key business units. Tower Semiconductor tops second quarter earnings and revenue expectations
• Positive Sentiment: Strong Q3 outlook: Management guided for third-quarter revenue of approximately $494 million to $546 million, above the roughly $490 million analyst consensus. The guidance points to another record revenue quarter and supports expectations for continued momentum. Why Tower Semiconductor Stock Is Surging Today
• Positive Sentiment: Capacity expansion supports growth: Tower is ramping silicon-photonics capacity ahead of its results, potentially positioning the company to capture demand from high-speed data-center and communications applications. Tower Semiconductor ramps up SiPho capacity
• Neutral Sentiment: Investor focus shifts to execution: The earnings call highlighted the outlook for demand, capacity utilization, and the pace of growth in specialty technologies. Tower Semiconductor Q2 2026 Earnings Call Transcript
• Negative Sentiment: High expectations remain a risk: Despite the operational momentum, Tower’s elevated valuation leaves the stock vulnerable if future results, margins, or guidance fail to maintain the current growth rate.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD boosted its position in Tower Semiconductor by 3,222.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,682,152 shares of the semiconductor company’s stock worth $549,779,000 after buying an additional 4,541,235 shares during the period. Wellington Management Group LLP raised its stake in shares of Tower Semiconductor by 0.7% during the third quarter. Wellington Management Group LLP now owns 2,108,004 shares of the semiconductor company’s stock valued at $152,409,000 after acquiring an additional 15,461 shares during the last quarter. Invesco Ltd. raised its stake in shares of Tower Semiconductor by 12.5% during the third quarter. Invesco Ltd. now owns 1,596,815 shares of the semiconductor company’s stock valued at $115,450,000 after acquiring an additional 176,998 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Tower Semiconductor by 293.8% during the fourth quarter. Janus Henderson Group PLC now owns 1,074,717 shares of the semiconductor company’s stock worth $126,193,000 after purchasing an additional 801,820 shares during the period. Finally, Bank of America Corp DE lifted its holdings in shares of Tower Semiconductor by 1.8% during the third quarter. Bank of America Corp DE now owns 957,647 shares of the semiconductor company’s stock worth $69,238,000 after purchasing an additional 16,952 shares during the period. Institutional investors and hedge funds own 70.51% of the company’s stock.

About Tower Semiconductor

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company’s technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.