Tower Semiconductor Ltd. · TSEM · FY2025 Q4 · Calendar Q1 2026

Tower Semiconductor lifts growth outlook as silicon photonics capacity plans expand

Management’s raised near-term outlook and expanding silicon photonics capacity plans support a growth case tied to data-center and AI demand. The thesis depends on timely capacity execution and on customer reservations and demand holding up as investment increases.

Reported Before market openNASDAQTechnology $18.90B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.78 Consensus $0.67
EPS surprise +16.4% Reported versus consensus
Reported revenue $440.2M Consensus $439.8M
Revenue surprise +0.1% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -1.6% Event window
SPY move -0.0% Same window
Abnormal move -1.5% Stock minus SPY
Volume 2.7× Versus trailing sessions
Subsequent drift -11.8% Up to 20 sessions
TSEMSPY benchmark

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Transcript intelligence

What changed

Management described a larger capacity expansion than in the prior quarter’s plan, targeting more than fivefold silicon photonics capacity. The quarter’s EPS exceeded consensus while revenue was approximately in line with consensus.

Guidance delta

Management raised its Q1 2026 revenue outlook to $412 million, plus or minus 5%, and outlined a $920 million 2026 capital expenditure plan. Its long-term model targets $2.84 billion in revenue by 2028.

Key takeaways

  • FY2025 Q4 revenue was $440 million; full-year revenue was $1.57 billion, according to the supplied call analysis.
  • Silicon photonics accounted for 27% of revenue, with management citing data-center demand.
  • The capacity plan aims for more than fivefold silicon photonics output; management said 70% of that capacity was already reserved or prepaid through 2028.
  • The main evidence against an uncomplicated growth outlook is execution risk: new tools, qualifications, and fab ramps must support the planned scale-up.

Management priorities

  • Expand silicon photonics and silicon-germanium capacity across fabs in the United States, Israel, and Japan.
  • Develop higher-speed photonics, wafer-bonding integration, co-packaged optics, and laser-source capabilities.
  • Support demand for data-center transceivers and high-voltage power-management ICs for AI server racks.

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Earnings History

Estimate Beat Miss Match
TSEM EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $0.39 Q1 '24 actual $0.46, beat Q2 '24 estimate $0.45 Q2 '24 actual $0.53, beat Q2 '25 estimate $0.47 Q2 '25 actual $0.50, beat Q3 '25 estimate $0.54 Q3 '25 actual $0.55, match Q4 '25 estimate $0.67 Q4 '25 actual $0.78, beat Q1 '26 estimate $0.56 Q1 '26 actual $0.65, beat Q2 '26 estimate $0.76 Q2 '26 actual $0.88, beat Q3 '26 estimate $1.07 Q3 '26 actual $1.15, beat Q4 '26 estimate $1.28 Q1 '27 estimate $1.27 Q2 '27 estimate $1.55 Q3 '27 estimate $1.86
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Analyst Consensus ?

ConsensusBuy14 ratings
Bullish1071.4%
Neutral428.6%
Bearish00.0%

Analyst 52W Price Targets

$155.32Current
$44Low
$188.2Average
$330High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Nov 3, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Wedbush Neutral NeutralMaintainMay 14, 2026
Susquehanna Positive PositiveMaintainMay 14, 2026
Benchmark Buy BuyMaintainMay 14, 2026
Barclays Equal Weight Equal WeightMaintainFeb 13, 2026
Craig-Hallum Buy BuyMaintainNov 14, 2024
Needham Hold BuyDowngradeFeb 15, 2022
Jefferies Buy BuyMaintainDec 8, 2021
Credit Suisse Neutral NeutralMaintainMay 14, 2020
Standpoint Research Buy HoldUpgradeAug 28, 2018
Loop Capital Buy BuyMaintainJun 22, 2018
Oppenheimer Outperform OutperformMaintainDec 15, 2015
Chardan Capital Buy BuyMaintainNov 23, 2015
Imperial Capital Outperform OutperformMaintainJun 23, 2014
Ascendiant Capital Buy BuyMaintainMar 11, 2014
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Named analyst price targets

Upside is calculated against the persisted current price $155.32. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Mizuho SecuritiesVijay Rakesh$300$217.28 +93.1%Sep 25, 2026
BarclaysSimon Coles$310$219.24 +99.6%Sep 18, 2026
Stifel NicolausSahej Singh$270$199.06 +73.8%Sep 1, 2026
WedbushAnalyst unavailable$300$276.64 +93.1%May 14, 2026
SusquehannaAnalyst unavailable$330$277.29 +112.5%May 14, 2026
BarclaysAnalyst unavailable$142$133.58 -8.6%Feb 13, 2026
WedbushAnalyst unavailable$140$128.04 -9.9%Feb 12, 2026
SusquehannaAnalyst unavailable$180$130.82 +15.9%Feb 12, 2026
WedbushAnalyst unavailable$125$120.67 -19.5%Dec 31, 2025
BarclaysAnalyst unavailable$97$98.1 -37.5%Nov 11, 2025
BarclaysAnalyst unavailable$74$67.6 -52.4%Sep 18, 2025
WedbushMatt Bryson$65$50.13 -58.2%Aug 5, 2025
SusquehannaMehdi Hosseini$66$50.13 -57.5%Aug 5, 2025
Craig-HallumRichard Shannon$44$36.99 -71.7%May 10, 2024
SusquehannaMedhi Hosseini$55$36.72 -64.6%May 10, 2024
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Company context

Snapshot as of publication

Tower Semiconductor Ltd. operates as a prominent independent semiconductor foundry, engaged in the worldwide production and sale of analog-intensive, mixed-signal semiconductor components. The company provides a comprehensive suite of customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensors, integrated power management solutions, and MEMS. Furthermore, it offers wafer fabrication services, a design enablement platform to streamline the development process, and specialized services for process transfer optimization and new product development. Tower Semiconductor caters to both integrated device manufacturers and fabless companies, with its products serving a wide range of industries such as consumer electronics, computing, telecommunications, automotive, industrial, aerospace, defense, and medical devices. Established in 1993 and based in Migdal Haemek, Israel, its market reach extends across the United States, Japan, other Asian regions, and Europe.

Historical context

All TSEM earnings

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Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-11-03T01:20:45.749154+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-03T01:20:45.746379+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-11-03. For educational purposes only; not investment advice.