Tower Semiconductor Ltd. Earnings Recaps
Q1 2026
May 14, 2026
The stock surged 27.1% post-earnings, driven by significant demand visibility from long-term, contracted silicon photonics revenue and impressive execution on capacity expansion, markedly exceeding market expectations.
Key takeaways
- Q1 2026 revenue grew 15% year-over-year to $414 million, with net profit up 62% to $65 million, lifting net margin to 16% from 11% a year ago.
- Management guided Q2 revenue to a record $455 million (+22% YoY, +10% QoQ), reinforcing expectations for sustained quarterly growth.
- Long-term contractual commitments in silicon photonics now stand at $1.3 billion for 2027, backed by $290 million in prepayments, highlighting strong customer confidence and visibility.
- Significant progress in 300-millimeter wafer capacity with full ownership of Fab 7 enabling scalable expansion and profitable operations at current volumes.
- Breakthroughs in next-generation silicon photonics technology, including new high-speed optical modulators and partnerships advancing high-volume manufacturing readiness for emerging AI data center demands.
Q3 2025
Nov 11, 2025
Tower Semiconductor demonstrated robust growth in Q3 2025, achieving record revenues of $396 million and a projected fourth-quarter revenue guidance of $440 million, supported by strong demand across key technology segments.
Key takeaways
- Revenue grew 20% year-over-year, with a net profit of $54 million.
- The RF infrastructure segment surged to $107 million, contributing 27% to total revenue, with anticipated full-year growth of 75%.
- Silicon photonics revenue increased by 70% year-over-year, driven by heightened demand for advanced data center solutions.
- Capacity expansions related to silicon photonics and silicon germanium are underway to meet increasing market demand anticipated through 2026.
- Strategic partnerships, including collaborations with NVIDIA and Xscape Photonics, position the company at the forefront of innovation in AI data center technologies.