Tower Semi Beats Q2, Guides Above Consensus; SiPho Run Rate Hits $680M
TSEM has more than doubled off its 52-week low of $45.51 on elevated volume (2.3× avg).
Summary
Tower Semiconductor delivered a clean beat-and-raise quarter. Q2 revenue of $460M topped the $454.7M consensus, and adjusted EPS of $0.88 crushed the $0.76 estimate. Gross margin expanded sharply to 29.95% from 21.51% a year ago. Q3 revenue guidance of $494M–$546M came in above the $490M consensus midpoint. The real standout is the silicon photonics ramp: SiPho revenue hit a $680M annual run rate in Q2, up from $180M a year ago, and management expects to exceed $1B by Q4 2026. The company also raised its 2028 target to $3.6B in revenue and $1.2B in net profit, backed by customer commitments. This follows the $3B Japan expansion and $1.3B in 2027 SiPho customer contracts announced earlier this year. The stock was up 3% on the day, but the magnitude of the SiPho acceleration and long-term target raise could drive further re-rating.
At the time of this announcement, TSEM was trading at $243.78 on NASDAQ in the Technology sector, with a market capitalization of approximately $27.2B. The 52-week trading range was $45.51 to $319.94. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.