Tower Semiconductor (NASDAQ:TSEM) Announces Quarterly Earnings Results

Tower Semiconductor (NASDAQ:TSEM) announced its quarterly earnings results on Wednesday. The semiconductor company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.56 by $0.01, Zacks reports. The business had revenue of $413.63 million for the quarter, compared to analysts’ expectations of $410.72 million. Tower Semiconductor had a net margin of 15.13% and a return on equity of 8.65%. The business’s quarterly revenue was up 15.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.35 EPS.

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

• Tower reported a strong Q1 2026, with revenue of $414 million (+15% year over year) and net profit of $65 million (+62%), while net margin expanded to 16% from 11% a year ago.
• Management guided Q2 2026 revenue to $455 million ±5%, which would be the highest quarterly revenue in company history, and reiterated its goal of sequential revenue and margin growth through 2026.
• Silicon photonics remains the key growth engine, with Q1 revenue up 3x year over year and long-term customer commitments totaling $1.3 billion for 2027, backed by about $290 million of customer prepayments.
• The company highlighted major capacity expansion and strategic moves in Japan, including its restructuring at TPSCo, full ownership of Fab 7, and plans to scale 300mm SiPho capacity to 5x the Q4 2025 level by year-end 2026.
• Gross margin improved to 27% from 20% a year ago, helped by a richer mix of newer products and pricing actions; management said the company is still working through supply constraints, especially for indium phosphide starting material.

Tower Semiconductor Trading Down 2.9%

Shares of NASDAQ:TSEM traded down $8.25 during trading on Friday, reaching $272.44. The company’s stock had a trading volume of 888,437 shares, compared to its average volume of 2,606,735. The company has a current ratio of 6.48, a quick ratio of 5.51 and a debt-to-equity ratio of 0.05. Tower Semiconductor has a 12 month low of $37.48 and a 12 month high of $283.46. The firm’s 50 day simple moving average is $186.10 and its two-hundred day simple moving average is $140.99. The stock has a market capitalization of $30.64 billion, a PE ratio of 126.70 and a beta of 0.85.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in TSEM. CIBC Private Wealth Group LLC lifted its holdings in shares of Tower Semiconductor by 254.2% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 418 shares of the semiconductor company’s stock valued at $30,000 after acquiring an additional 300 shares during the last quarter. Advisory Services Network LLC bought a new position in shares of Tower Semiconductor in the 3rd quarter valued at about $48,000. Kestra Advisory Services LLC bought a new position in shares of Tower Semiconductor in the 4th quarter valued at about $52,000. Quadrant Capital Group LLC bought a new position in shares of Tower Semiconductor in the 3rd quarter valued at about $125,000. Finally, Aviva PLC bought a new position in shares of Tower Semiconductor in the 4th quarter valued at about $213,000. Institutional investors own 70.51% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on TSEM shares. Susquehanna raised their price objective on Tower Semiconductor from $180.00 to $330.00 and gave the company a “positive” rating in a research report on Thursday. Barclays raised their price objective on Tower Semiconductor from $114.00 to $142.00 and gave the company an “equal weight” rating in a research report on Friday, February 13th. Wedbush raised their price objective on Tower Semiconductor from $140.00 to $300.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, Benchmark raised their price objective on Tower Semiconductor from $230.00 to $335.00 and gave the company a “buy” rating in a research report on Thursday. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $276.75.

Tower Semiconductor Company Profile

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.