Tower Semiconductor Ltd. (NASDAQ:TSEM) shares climbed Wednesday after the Israel-based chip foundry reported stronger-than-expected first-quarter results and issued upbeat second-quarter guidance.
The company posted first-quarter revenue of $413.63 million, up 15% from a year earlier and ahead of analysts’ estimates of $410.98 million
Adjusted earnings came in at 65 cents per share, topping Wall Street expectations of 56 cents per share. Tower Semiconductor Profit Growth And Margin Expansion Gross profit increased 52% year over year to $110.95 million, while gross margin expanded to 26.8% from 20.4% a year earlier. Operating profit rose 96% to $64.57 million.
Operating cash flow surged to $509.97 million from $93.92 million in the prior-year quarter. Tower Semiconductor ended the quarter with $243.31 million in cash and cash equivalents as of March 31, 2026. Silicon Photonics Deals Boost Long-Term Visibility Tower Semiconductor said it signed silicon photonics agreements expected to generate $1.3 billion in revenue in 2027 from its largest customers.