Israeli chipmaker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE:TSEM) beat the analysts expectations in its second quarter results with revenue of $460 million and earnings per share of $0.76.
In volatile trading on Wall Street, Tower’s share price, which has fallen 26% from its peak in June, is 1.09% higher, giving a market cap of $26.8 billion. The results for the quarter reflect 24% growth compared with the corresponding quarter, and record quarterly revenue for the company. The record is expected to be broken in the third quarter, when Tower sees revenue of $520 million, 31% growth from the corresponding quarter. This revenue is about 6% higher than analysts' forecasts.
Tower recorded a 39.6% growth in net profit in the second quarter, which amounted to $90.8 million. Adjusted net profit attributable to shareholders increased by 35.2% and reached about $101 million. During the second quarter, Tower generated $177 million from operating activities, and at the end of the quarter had cash and investments totaling nearly $1.5 billion while long-term debt was $125 million.
Tower CEO Russell Ellwanger said, "Amidst a powerful demand momentum across Tower’s key business units, we achieved record revenue and record profitability, whilst simultaneously strengthening our technology leadership and greatly expanding manufacturing capacity throughout 2026. Moreover, we recently announced additional substantial capacity expansions, in direct support of our strong growing customer demand. SiPho presented triple digit year over year revenue increase to $680 million annual run rate in the second quarter of 2026 from $180 million annual run rate in the second quarter of 2025. We plan to cross the $1 billion of SiPho revenue annual run rate in the fourth quarter of 2026, with continued significant growth throughout 2027."
He added, "We are raising our 2028 target business model to $3.6 billion of revenue with $1.2 billion net profit, being fully spoken for by our customers. Deep strategic customer engagements provide exciting sustainable growth for our customers, and for Tower, thus enabling growing shareholders’ value."
Published by Globes, Israel business news - en.globes.co.il - on August 4, 2026.
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