Tower Semiconductor TSEM Q2 2026: EPS Beats by 16%, Silicon Photonics Hits $680M Run Rate

Tower Semiconductor reported Q2 2026 earnings per share of $0.88, clearing the $0.758 consensus estimate by roughly 16%. Revenue came in at $460.1 million, edging past the $454.7 million estimate by about 1.2%. The result extends a streak of beats that stretches back at least eight consecutive quarters, with the margin of outperformance on EPS notably widening in the most recent two periods.

The standout detail in management's commentary is the silicon photonics business, which has reached a $680 million annual run rate. The company expects that segment alone to cross the $1 billion threshold by the fourth quarter, driven by AI data center orders. That would represent a substantial step up in a relatively short window and signals that Tower is increasingly tied to the infrastructure buildout powering large language models and related workloads.

The next concrete data point for investors is Q3 revenue guidance, which management flagged as the upcoming checkpoint. Given how much of the bull case now rests on the silicon photonics ramp, any commentary on order visibility or capacity constraints in that guidance will likely set the tone for how the stock trades into year-end.