Tower Semiconductor (NASDAQ:TSEM) reported second-quarter 2026 results that surpassed Wall Street expectations and issued third-quarter revenue guidance that came in well above analyst forecasts.
The stronger outlook helped lift the company’s shares 1.37% in pre-market trading.
Revenue and Earnings Top Expectations
Tower Semiconductor posted adjusted earnings of $0.88 per share, exceeding the analyst consensus estimate of $0.67 by $0.21.
Quarterly revenue reached a record $460.08 million, ahead of market expectations of $437.33 million and up 24% from $372.06 million in the second quarter of 2025.
The results reflected continued demand across several of the company’s core semiconductor businesses.
Third-Quarter Guidance Beats Consensus
For the third quarter of 2026, Tower Semiconductor forecast revenue of approximately $520 million, with a potential variance of plus or minus 5%.
The midpoint of the guidance is around $30 million above the analyst consensus estimate of $490 million and implies year-over-year growth of approximately 31%.
CEO Highlights Strong Demand and Capacity Expansion
Chief Executive Officer Russell Ellwanger said the company delivered record financial performance while continuing to expand its manufacturing footprint.
“Amidst a powerful demand momentum across Tower’s key business units, we achieved record revenue and record profitability, whilst simultaneously strengthening our technology leadership and greatly expanding manufacturing capacity throughout 2026.”
Profitability Reaches Record Levels
Adjusted net profit totalled $100.71 million during the quarter, representing a net margin of 20%.
Gross profit climbed to a record $138 million, an increase of 72% from $80 million in the same period last year.
Operating profit reached $90 million, more than doubling the $40 million reported a year earlier.
Silicon Photonics Continues Rapid Growth
Tower Semiconductor said its Silicon Photonics business achieved an annual revenue run rate of $680 million during the second quarter, up from $180 million in the corresponding period of 2025.
The company expects that figure to exceed a $1 billion annual run rate by the fourth quarter of 2026.
During the quarter, Tower generated $177 million in operating cash flow while investing $187 million in property and equipment to support future growth.
Tower Semiconductor stock price
