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.
Earnings scorecard
Reported versus consensusMarket reaction
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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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Analyst 52W Price Targets
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.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Wedbush | Neutral | Neutral | Maintain | May 14, 2026 |
| Susquehanna | Positive | Positive | Maintain | May 14, 2026 |
| Benchmark | Buy | Buy | Maintain | May 14, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | Feb 13, 2026 |
| Craig-Hallum | Buy | Buy | Maintain | Nov 14, 2024 |
| Needham | Hold | Buy | Downgrade | Feb 15, 2022 |
| Jefferies | Buy | Buy | Maintain | Dec 8, 2021 |
| Credit Suisse | Neutral | Neutral | Maintain | May 14, 2020 |
| Standpoint Research | Buy | Hold | Upgrade | Aug 28, 2018 |
| Loop Capital | Buy | Buy | Maintain | Jun 22, 2018 |
| Oppenheimer | Outperform | Outperform | Maintain | Dec 15, 2015 |
| Chardan Capital | Buy | Buy | Maintain | Nov 23, 2015 |
| Imperial Capital | Outperform | Outperform | Maintain | Jun 23, 2014 |
| Ascendiant Capital | Buy | Buy | Maintain | Mar 11, 2014 |
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.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Mizuho Securities | Vijay Rakesh | $300 | $217.28 | +93.1% | Sep 25, 2026 |
| Barclays | Simon Coles | $310 | $219.24 | +99.6% | Sep 18, 2026 |
| Stifel Nicolaus | Sahej Singh | $270 | $199.06 | +73.8% | Sep 1, 2026 |
| Wedbush | Analyst unavailable | $300 | $276.64 | +93.1% | May 14, 2026 |
| Susquehanna | Analyst unavailable | $330 | $277.29 | +112.5% | May 14, 2026 |
| Barclays | Analyst unavailable | $142 | $133.58 | -8.6% | Feb 13, 2026 |
| Wedbush | Analyst unavailable | $140 | $128.04 | -9.9% | Feb 12, 2026 |
| Susquehanna | Analyst unavailable | $180 | $130.82 | +15.9% | Feb 12, 2026 |
| Wedbush | Analyst unavailable | $125 | $120.67 | -19.5% | Dec 31, 2025 |
| Barclays | Analyst unavailable | $97 | $98.1 | -37.5% | Nov 11, 2025 |
| Barclays | Analyst unavailable | $74 | $67.6 | -52.4% | Sep 18, 2025 |
| Wedbush | Matt Bryson | $65 | $50.13 | -58.2% | Aug 5, 2025 |
| Susquehanna | Mehdi Hosseini | $66 | $50.13 | -57.5% | Aug 5, 2025 |
| Craig-Hallum | Richard Shannon | $44 | $36.99 | -71.7% | May 10, 2024 |
| Susquehanna | Medhi Hosseini | $55 | $36.72 | -64.6% | May 10, 2024 |
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Start freeCompany context
Snapshot as of publicationTower 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
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| CHKP Check Point Software Technologies Ltd. | FY2026 Q3 · Calendar Q4 2026 | — | -2.4% | Check Point sees Q3 as revenue trough, with subscriptions still growing |
| INTC Intel Corp. | FY2026 Q3 · Calendar Q4 2026 | +27.9% | -28.6% | Intel: AI Server Demand Offsets PC Weakness, CapEx Rises |
| GDDY GoDaddy Inc. | FY2026 Q3 · Calendar Q4 2026 | +9.5% | +10.7% | GoDaddy: Airo accelerates while guidance is maintained |
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Missed on EPS
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-11-03T01:20:45.749154+00:00
- 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.