Tower Semiconductor shares jump after Q1 earnings beat on AI-driven demand

Proactive

Wed, May 13, 2026 astatine 10:14 AM CDT 2 min read

Tower Semiconductor (NASDAQ:TSEM) reported better-than-expected fiscal results for the archetypal 4th and issued an upbeat outlook, sending its shares 12% higher connected Wednesday morning.

For the 4th ended March 31, 2026, Tower Semiconductor reported gross of $413.6 million, compared with $358 cardinal a twelvemonth earlier, representing 15% year-over-year maturation and supra statement estimates of astir $408 million.

Adjusted net per stock came successful astatine $0.65, topping estimates of $0.55.

Net nett for the 4th was $65 million, oregon $0.57 diluted EPS, up from $40 million, oregon $0.35 diluted EPS, successful the prior-year period.

Gross nett roseate to $111 million, portion operating nett accrued to $65 million, reflecting stronger profitability versus past year.

The institution besides highlighted $290 cardinal successful lawsuit prepayments included successful currency from operating activities, chiefly tied to silicon photonics customers. Excluding these prepayments, operating currency travel totaled $225 million, portion nett investments successful spot and instrumentality were $156 million.

Looking ahead, Tower Semiconductor guided second-quarter 2026 gross to $455 million, with a 5% positive oregon minus range, which would people a institution record. The outlook implies 22% year-over-year maturation and 10% sequential growth.

The institution besides reiterated expectations for continued sequential gross and borderline enlargement passim 2026.

“We delivered a beardown commencement to 2026, with broad-based year-over-year gross maturation crossed our cardinal exertion platforms and continued execution with beardown advancement of our strategical priorities,” Tower Semiconductor CEO Russell Ellwanger said successful the net release.

“Our 2nd 4th guidance positions america with the highest quarterly gross successful Tower’s history, with expected sequential quarter-over-quarter maturation passim the remainder of the year.”