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TSEM Q1 2026 Earnings
Reported May 13, 2026 at 7:00 AM ET · SEC Source
Q1 26 EPS
$0.65
BEAT +18.70%
Est. $0.55
Q1 26 Revenue
$413.6M
BEAT +0.65%
Est. $411.0M
vs S&P Since Q1 26
+20.5%
BEATING MARKET
TSEM +19.2% vs S&P -1.3%
Market Reaction
Did TSEM Beat Earnings? Q1 2026 Results
Tower Semiconductor delivered a strong first quarter for fiscal 2026, posting non-GAAP diluted EPS of $0.65 against a consensus estimate of $0.56, a beat of 15.66%, while revenue of $413.63 million edged past the $410.98 million estimate and grew 15.… Read more Tower Semiconductor delivered a strong first quarter for fiscal 2026, posting non-GAAP diluted EPS of $0.65 against a consensus estimate of $0.56, a beat of 15.66%, while revenue of $413.63 million edged past the $410.98 million estimate and grew 15.5% year-over-year. The standout driver behind the quarter was accelerating demand for silicon photonics tied to AI infrastructure buildout, which helped lift gross profit 52% and nearly double operating profit compared to a year ago, demonstrating meaningful operating leverage on a broader revenue base. The momentum is broad enough that management guided Q2 2026 revenue to $455 million, plus or minus 5%, representing 22% year-over-year and 10% sequential growth. Looking further out, Tower has locked in $1.3 billion in contracted silicon photonics revenue from its largest customers for 2027, underpinning a longer-term target of $2.8 billion in annual revenue and $750 million in net profit by 2028. The improved credit outlook from S&P Maalot, which raised its rating stance to positive, added to the constructive backdrop heading into the print.
Key Takeaways
- • Broad-based year-over-year revenue growth across key technology platforms
- • Strong customer demand and expanding content opportunities
- • Increasing contribution of silicon photonics for AI infrastructure
- • 52% gross profit growth and 96% operating profit growth year-over-year
- • $285 million in customer prepayments received for silicon photonics capacity commitments
TSEM Forward Guidance & Outlook
Tower Semiconductor guides Q2 2026 revenue to $455 million (±5%), which would represent a company record, with 22% year-over-year and 10% quarter-over-quarter growth. The company targets sequential quarter-over-quarter revenue and margin growth throughout 2026. Longer-term, management targets $2.8 billion in annual revenue and $750 million in net profit by 2028, supported by $1.3 billion of contracted silicon photonics revenue for 2027 from its largest SiPho customers.
TSEM YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“We delivered a strong start to 2026, with broad-based year-over-year revenue growth across our key technology platforms and continued execution with strong advancement of our strategic priorities. Our second quarter guidance positions us with the highest quarterly revenue in Tower's history, with expected sequential quarter-over-quarter growth throughout the remainder of the year. This demonstrates strong customer demand, expanding content opportunities and the increasing contribution of our leading and differentiated technology portfolio, particularly in silicon photonics for AI infrastructure.”
— Russell Ellwanger, Q1 2026 Earnings Press Release
TSEM Earnings Trends
TSEM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TSEM EPS Trend
Earnings per share: estimate vs actual
TSEM Revenue Trend
Quarterly revenue: estimate vs actual
TSEM Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.55 | $0.65 | +18.70% | $413.6M | +0.65% |
| Q4 25 BEAT FY | $0.68 | $0.78 | +14.71% | $440.2M | -0.16% |
| FY Full Year | $2.18 | $2.29 | +5.13% | $1.57B | -0.04% |
| Q3 25 BEAT | $0.54 | $0.55 | +1.85% | $395.7M | +0.17% |
| Q2 25 BEAT | $0.37 | $0.50 | +35.14% | $372.1M | +0.12% |