Tower Semiconductor (TSEM)
NASDAQ:TSEM
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Earnings Data
Report Date
Aug 04, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.76Last Year’s EPS
0.5Same Quarter Last Year
Strong Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strong positive operational and financial performance in Q1 2026: top-line growth (+15% YoY), significant margin and profit expansion (gross profit +52% YoY; net profit +62% YoY), robust SiPho momentum (3x YoY growth) and meaningful forward visibility with $1.3B contractual 2027 commitments and $290M in prepayments. Strategic wins, multiple technology breakthroughs, capacity expansion plans and a solid balance sheet (S&P rating reaffirmed with positive outlook) further support a favorable outlook. Near-term headwinds include RF mobile softness during the 200mm→300mm transition, some fab qualification-driven utilization drag, supply constraints (indium phosphide starting material), and a higher normalized tax rate (15%–18%) after a one-time Q1 benefit. Management expects continued quarter-over-quarter revenue and margin growth and has a multi‑year CapEx plan to scale SiPho/SiGe capacity. Overall, highlights materially outweigh the lowlights, with clear revenue visibility and technology leadership balanced against manageable timing and supply risks.Company Guidance
Strong Top-Line Growth
Q1 2026 revenue of $414.0M, up 15% year-over-year from $358.0M; company guides Q2 2026 mid-range revenue of $455M ±5% (highest revenue in company history), implying +22% YoY and ~+10% quarter-over-quarter growth.
Material Profitability Improvement
Gross profit of $111M in Q1 2026, +52% YoY; operating profit of $65M, +96% YoY; net profit $65M, +62% YoY; net margin improved to 16% from 11% in Q1 2025.
Earnings Per Share Expansion
Q1 2026 EPS: $0.58 basic (+61% YoY) and $0.57 diluted (+63% YoY), reflecting strong bottom-line leverage to revenue and margin expansion.
Silicon Photonics Surge and Visibility
Silicon photonics (SiPho) revenue grew 3x YoY; company reports contractual customer commitments representing $1.3B in revenue for 2027 (wafers delivered in 2027) and indicates significantly larger contracted/expected volumes for 2028; $290M of SiPho customer prepayments already received and recorded as customer advances.
Technology & Product Breakthroughs and Partnerships
Multiple technology milestones achieved in Q1: all-silicon 400Gbps-per-lane Mach-Zehnder modulator (Coherent), 400Gbps-per-lane indium phosphide EAM (OpenLight), progress on thin-film lithium niobate, partnerships with Lightwave Logic, NLM Photonics, Salience Labs, Oriole Networks, and SCINTIL Photonics—demonstrating leadership across XPO/NPO/CPO and next-gen modulators.
Capacity Ramps, Yields and Utilization Strengths
First flow cycle revenue shipments from Fab 2 and Fab 7; Fab 7 achieved ~95% yield for first SiPho wafers. SiPho capacity targeted to grow ~5x from Q4 2025 wafer revenue by end of 2026. Several fabs running at healthy utilizations: Fab3 80%, Fab5 75%, Fab7 fully utilized (well above 85%), Fab9 80%.
Robust Balance Sheet and Credit Outlook
Total assets $3.7B; net fixed assets $1.5B; current assets ~$2.0B and current assets ratio ~5.6x; shareholders' equity at record $3.0B. S&P Maalot reaffirmed ilAA rating and upgraded outlook to positive (May 5, 2026).
Committed CapEx and Longer-Term Financial Targets
Announced $920M CapEx plan to expand SiPho and SiGe capacity across Israel, Newport Beach (TX) and Uozu (Japan); ~40% of CapEx already paid, remaining 60% expected through 2026–2027. Long-term model targets: $2.8B revenue, $1.12B gross profit, $900M operating profit, $750M net profit (model under active review).
Pricing and Product Mix Benefits
Company reports higher-margin mix and product pricing actions (e.g., 13% price increase on 200mm BCD), contributing to gross margin expansion (quarter moved from 20% a year ago to ~27% this quarter with a long-term model target ~39%).
TSEM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSEM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 13, 2026 | $220.83 | $270.77 | +22.61% |
Feb 11, 2026 | $136.57 | $134.44 | -1.56% |
Nov 10, 2025 | $84.07 | $98.10 | +16.69% |
Aug 04, 2025 | $44.67 | $50.98 | +14.13% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Tower Semiconductor (TSEM) report earnings?
Tower Semiconductor (TSEM) is schdueled to report earning on Aug 04, 2026, TBA (Confirmed).
What is Tower Semiconductor (TSEM) earnings time?
Tower Semiconductor (TSEM) earnings time is at Aug 04, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSEM EPS forecast?
TSEM EPS forecast for the fiscal quarter 2026 (Q2) is 0.76.
