The Motley Fool·Jun 26, 2026
Why Tower Semiconductor Took a Dive TodayTower Semiconductor fell along with many AI chip stocks. The New York Times reported yesterday that OpenAI may delay its IPO.
Tower Semiconductor Ltd.(TSEM)Earnings, Financials & Key Ratios
TSEM•NASDAQ
$211.93
109.2× P/E·Price updated Jul 7, 2026
SectorTechnologyIndustrySemiconductorsSub-IndustrySemiconductor Foundries and Manufacturing Services
AboutTower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, other Asia countries, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers wafer fabrication services and design enablement platform for design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as consumer electronics, personal computers, communications, automotive, industrial, aerospace, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.Show more
- Revenue$1.57B+9.1%
- EBITDA$497M+8.7%
- Net Income$220M+6.1%
- EPS (Diluted)1.94+4.9%
- Gross Margin23.23%-1.7%
- EBITDA Margin31.75%-0.3%
- Operating Margin12.4%-6.9%
- Net Margin14.08%-2.7%
- ROE7.95%-3.1%
TSEM Price & Volume
Tower Semiconductor Ltd. (TSEM) stock price & volume — 10-year historical chart
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Specialized Foundry Scaling Amidst Regional Operational Risks
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Accelerating
Profitability:Moderate
Financial:Fortress
Cash Flow:Robust
Primary Risk:Regional geopolitical instability
Key Thesis Takeaways
- Tower Semiconductor is successfully scaling its specialized analog foundry operations, evidenced by a 15.5% year-over-year revenue growth in 2026Q1 and a robust balance sheet with a 0.05 debt-to-equity ratio.
- While the company demonstrates improved operating leverage, investors should monitor the inherent volatility in free cash flow, which swung from a negative $75.3 million in 2025Q4 to a positive $353.6 million in 2026Q1.
- The long-term outlook remains tempered by significant geopolitical risks associated with its regional manufacturing footprint and the high capital intensity required to maintain competitive process nodes.
Verdict Logic
while the company maintains a strong current ratio of 5.63, the current P/E of 128.82 and significant geopolitical exposure warrant a cautious approach until cash flow consistency improves.
TSEM Growth Metrics
Tower Semiconductor Ltd. (TSEM) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.01%
5 Years4.35%
3 Years-2.27%
TTM10.53%
Profit CAGR
10 Years-
5 Years21.78%
3 Years-5.9%
TTM20.65%
EPS CAGR
10 Years-
5 Years20.61%
3 Years-6.72%
TTM18.78%
Return on Capital
10 Years11.75%
5 Years12.09%
3 Years12.15%
Last Year6.63%
TSEM Recent Earnings
Tower Semiconductor Ltd. (TSEM) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
May 13, 2026Metric
Actual
Est
EPS
$0.65+15.5%
$0.56
Rev
$414M+0.7%
$411M
Q1 2026
Feb 11, 2026Metric
Actual
Est
EPS
$0.78+16.4%
$0.67
Rev
$440M+0.1%
$440M
Q4 2025
Nov 10, 2025Metric
Actual
Est
EPS
$0.55+1.3%
$0.54
Rev
$396M+0.2%
$395M
Q3 2025
Aug 4, 2025Metric
Actual
Est
EPS
$0.50+6.4%
$0.47
Rev
$372M-5.8%
$395M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 13, 2026 | $0.65vs $0.56+15.5% | $414Mvs $411M+0.7% |
| Q1 2026 | Feb 11, 2026 | $0.78vs $0.67+16.4% | $440Mvs $440M+0.1% |
| Q4 2025 | Nov 10, 2025 | $0.55vs $0.54+1.3% | $396Mvs $395M+0.2% |
| Q3 2025 | Aug 4, 2025 | $0.50vs $0.47+6.4% | $372Mvs $395M-5.8% |
Based on last 12 quarters of dataView full earnings history →
Latest TSEM News
Recent stock market news and headlines for Tower Semiconductor Ltd. (TSEM)
GlobeNewsWire·Jun 18, 2026
Tower Semiconductor and Marvell Ship Over Five Million Coherent Photonic ICsTower's advanced silicon photonics platform enables high-bandwidth, energy-efficient data center connectivity
Globe News Wire·Jun 18, 2026
Tower Semiconductor and Marvell Ship Over Five Million Coherent Photonic ICsTower's advanced silicon photonics platform enables high-bandwidth, energy-efficient data center connectivity MIGDAL HAEMEK, Israel, June 18, 2026 - Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, today announced a significant milestone. The company, in partnership with Marvell Technology, has shipped over five million coherent photonic integrated circuits (PICs) to Marvell global customers, delivering advanced, high-performance photonics solutions to address the growing bandwidth and efficiency demands of AI-driven data center interconnect (DCI) networks.
Proactive Investors·Jun 15, 2026
Tower Semiconductor shares jump on IQE supply dealTower Semiconductor (NASDAQ:TSEM) shares surged nearly 9% after the company signed a multi-year indium phosphide epiwafer supply agreement with IQE, targeting the fast-growing AI data center optical connectivity market. Under the deal, IQE will supply InP epiwafers to support Tower's advanced silicon photonics platforms, including 200Gbps/lane pluggable transceivers and prototyping of 400Gbps/lane modulators, as well as optical circuit switches.
GuruFocus·Jun 15, 2026
Tower Semiconductor Secures Multi-Year Agreement with IQE to Boost GrowthTower Semiconductor (TSEM) has seen its stock surge following the announcement of a multi-year agreement with IQE. This partnership focuses on supplying Indium
Peers Comparison
Key metrics vs top competitors for Tower Semiconductor Ltd. (TSEM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $211.93 | $24.23B | 109.24 | 9.05% | 14.08% | 7.95% | — | |
| $65.84 | $36.11B | 41.41 | 0.61% | 11.37% | 6.63% | — | |
| $23.83 | $59.44B | 45.87 | 2.26% | 20.82% | 13.5% | — | |
| $110.39 | $554.27B | -1874.19 | -0.47% | -5.9% | -2.68% | — | |
| $91.10 | $35.7B | 314.14 | -15.35% | 9.46% | 7.43% | — | |
| $36.00 | $1.62B | -1.05 | -6.14% | -222.23% | -5208.55% | — |
Compare TSEM vs Peers
Tower Semiconductor Ltd. (TSEM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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TSEM Frequently Asked Questions
Tower Semiconductor Ltd. (TSEM) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Tower Semiconductor Ltd.'s revenue?
Tower Semiconductor Ltd. (TSEM) reported $1.62B in revenue for fiscal year 2025. This represents a 1556% increase from $97.9M in 1996.
How fast is Tower Semiconductor Ltd. growing?
Tower Semiconductor Ltd. (TSEM) grew revenue by 9.1% over the past year. This is steady growth.
Is TSEM profitable?
Yes, Tower Semiconductor Ltd. (TSEM) is profitable, generating $245.4M in net income for fiscal year 2025 (14.1% net margin).
Dividend & Returns
What is TSEM's return on equity?
Tower Semiconductor Ltd. (TSEM) has a return on equity (ROE) of 8.0%. This is below average, suggesting room for improvement.
What is Tower Semiconductor Ltd.'s free cash flow?
Tower Semiconductor Ltd. (TSEM) generated $326.1M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.