Tower Semiconductor (NASDAQ:TSEM) Announces Earnings Results

Tower Semiconductor (NASDAQ:TSEM) posted its quarterly earnings results on Tuesday. The semiconductor company reported $0.88 earnings per share for the quarter, topping analysts’ consensus estimates of $0.76 by $0.12, Briefing.com reports. Tower Semiconductor had a net margin of 16.94% and a return on equity of 9.97%. The firm had revenue of $460.08 million for the quarter, compared to the consensus estimate of $454.68 million. During the same quarter in the previous year, the company earned $0.41 earnings per share. The business’s revenue was up 23.7% compared to the same quarter last year.

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 7.8%

Shares of TSEM traded up $16.50 on Thursday, hitting $227.64. The company’s stock had a trading volume of 1,553,681 shares, compared to its average volume of 2,397,026. The firm’s fifty day moving average price is $245.90 and its 200-day moving average price is $199.81. The company has a quick ratio of 4.92, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. Tower Semiconductor has a fifty-two week low of $45.51 and a fifty-two week high of $319.94. The firm has a market capitalization of $25.60 billion, a price-to-earnings ratio of 89.95 and a beta of 0.90.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Susquehanna upped their target price on shares of Tower Semiconductor from $180.00 to $330.00 and gave the company a “positive” rating in a research note on Thursday, May 14th. Wedbush boosted their price target on Tower Semiconductor from $140.00 to $300.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. UBS Group reiterated a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Finally, Benchmark restated a “buy” rating on shares of Tower Semiconductor in a research note on Wednesday. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $276.75.

Institutional Investors Weigh In On Tower Semiconductor

Several institutional investors have recently bought and sold shares of the company. CIBC Private Wealth Group LLC boosted its stake in shares of Tower Semiconductor by 254.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 418 shares of the semiconductor company’s stock worth $30,000 after buying an additional 300 shares during the last quarter. Advisory Services Network LLC bought a new position in Tower Semiconductor during the third quarter worth $48,000. Kestra Advisory Services LLC bought a new stake in shares of Tower Semiconductor during the 4th quarter worth about $52,000. Quadrant Capital Group LLC acquired a new position in Tower Semiconductor in the 3rd quarter valued at about $125,000. Finally, Aviva PLC acquired a new position in Tower Semiconductor in the 4th quarter valued at about $213,000. Institutional investors own 70.51% of the company’s stock.

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.