Tower Semiconductor (NASDAQ:TSEM) reported better-than-expected financial results for the first quarter and issued an upbeat outlook, sending its shares 12% higher on Wednesday morning.
For the quarter ended March 31, 2026, Tower Semiconductor reported revenue of $413.6 million, compared with $358 million a year earlier, representing 15% year-over-year growth and above consensus estimates of about $408 million
Adjusted earnings per share came in at $0.65, topping estimates of $0.55. Net profit for the quarter was $65 million, or $0.57 diluted EPS, up from $40 million, or $0.35 diluted EPS, in the prior-year period. Gross profit rose to $111 million, while operating profit increased to $65 million, reflecting stronger profitability versus last year.
The company also highlighted $290 million in customer prepayments included in cash from operating activities, primarily tied to silicon photonics customers. Excluding these prepayments, operating cash flow totaled $225 million, while net investments in property and equipment were $156 million. Looking ahead, Tower Semiconductor guided second-quarter 2026 revenue to $455 million, with a 5% plus or minus range, which would mark a company record.