Tower Semiconductor (NASDAQ:TSEM) Issues Earnings Results

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

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 Stock Up 2.2%

Shares of Tower Semiconductor stock traded up $5.21 on Tuesday, hitting $239.53. The company had a trading volume of 6,324,389 shares, compared to its average volume of 1,912,271. The stock has a market capitalization of $26.94 billion, a price-to-earnings ratio of 111.41 and a beta of 0.90. Tower Semiconductor has a 1 year low of $45.51 and a 1 year high of $319.94. The stock has a 50 day moving average of $247.23 and a 200-day moving average of $199.20. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.92 and a current ratio of 5.63.

Institutional Investors Weigh In On Tower Semiconductor

Several institutional investors have recently bought and sold shares of TSEM. Amundi raised its holdings in shares of Tower Semiconductor by 86.8% in the first quarter. Amundi now owns 21,617 shares of the semiconductor company’s stock valued at $771,000 after purchasing an additional 10,042 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Tower Semiconductor by 4.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 99,633 shares of the semiconductor company’s stock worth $3,553,000 after purchasing an additional 3,954 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Tower Semiconductor by 0.7% during the second quarter. Geode Capital Management LLC now owns 95,384 shares of the semiconductor company’s stock worth $4,135,000 after purchasing an additional 662 shares during the last quarter. Hsbc Holdings PLC bought a new stake in Tower Semiconductor in the 2nd quarter worth about $438,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in Tower Semiconductor in the 2nd quarter worth about $5,809,000. Institutional investors own 70.51% of the company’s stock.

Analysts Set New Price Targets

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

Key Stories Impacting Tower Semiconductor

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.

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.