Tower Semiconductor posts strong Q1 2026 results and guides to record Q2 revenue
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Tower ( (TSEM) ) has shared an announcement.
On May 13, 2026, Tower Semiconductor reported first-quarter 2026 results showing revenue of $414 million, up 15% year over year, with gross profit rising 52% to $111 million and operating profit nearly doubling to $65 million. Net profit climbed to $65 million, or $0.58 per basic share, supported in part by $290 million in silicon photonics customer prepayments and $156 million in capital investment, underscoring strong demand across its key technology platforms.
The company projected a record $455 million in second-quarter 2026 revenue, implying 22% annual growth and 10% sequential growth, and said it targets sequential revenue and margin expansion throughout 2026. Management highlighted restructuring in Japan toward full ownership of Fab 7 to strengthen its 300mm strategy, noted $1.3 billion of contracted silicon photonics revenue for 2027, and cited an upgraded “positive” outlook from S&P Maalot as reinforcing its path toward ambitious 2028 financial targets.
The most recent analyst rating on (TSEM) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Tower stock, see the TSEM Stock Forecast page.
Spark’s Take on TSEM Stock
According to Spark, TipRanks’ AI Analyst, TSEM is a Outperform.
The score is driven by a strong financial foundation and upbeat earnings-call outlook (funded SiPho/SiGe expansion with substantial capacity reservations), reinforced by strong technical uptrend signals. These positives are tempered by expensive valuation (high P/E), overbought technical readings, and the near-term concern of negative 2025 free cash flow alongside execution and contract-related risks.
To see Spark’s full report on TSEM stock, click here.
More about Tower
Tower Semiconductor Ltd. is a leading foundry of high-value analog semiconductor solutions, providing technology, development and manufacturing services for specialized chips. The Israel-based company focuses on differentiated platforms such as silicon photonics, positioning itself to serve growing demand in areas including AI infrastructure and advanced analog applications.
Average Trading Volume: 2,787,223
Technical Sentiment Signal: Buy
Current Market Cap: $24.68B
For a thorough assessment of TSEM stock, go to TipRanks’ Stock Analysis page.
