Revenue growth has accelerated to 15.5% in 2026Q1, while operating income improved to $64.6 million from $34.0 million in 2024Q1, reflecting disciplined expense management.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.62B | 1.57B | 1.44B | 1.42B | 1.68B | 1.51B | 1.27B | 1.23B | 1.3B | 1.39B | 1.25B | 960.56M | 828.01M | 505.01M | 638.83M | 611.02M | 509.26M | 298.81M | 251.66M | 230.85M | 187.44M | 101.99M | 126.06M | 61.37M | 51.8M | 52.37M | 104.78M | 69.81M | 69.6M | 125.9M | 97.9M |
| Revenue Growth % | 10.53% | 9.05% | 0.94% | -15.2% | 11.24% | 19.16% | 2.57% | -5.37% | -6% | 11.02% | 30.09% | 16.01% | 63.96% | -20.95% | 4.55% | 19.98% | 70.43% | 18.74% | 9.01% | 23.16% | 83.78% | -19.09% | 105.41% | 18.47% | -1.09% | -50.01% | 50.08% | 0.31% | -44.72% | 28.6% | -1.71% |
| Cost of Goods Sold | 1.22B | 1.2B | 1.1B | 1.07B | 1.21B | 1.18B | 1.03B | 1B | 1.01B | 1.03B | 946.53M | 755.2M | 764.22M | 476.9M | 560.05M | 526.2M | 402.08M | 325.31M | 298.68M | 284.77M | 267.39M | 238.36M | 228.41M | 122.39M | 67.02M | 76.73M | 62.72M | 50.39M | 76.8M | 66M | 58.1M |
| COGS % of Revenue | - | 76.77% | 76.36% | 75.15% | 72.2% | 78.18% | 81.57% | 81.39% | 77.54% | 74.46% | 75.74% | 78.62% | 92.3% | 94.43% | 87.67% | 86.12% | 78.95% | 108.87% | 118.69% | 123.36% | 142.66% | 233.7% | 181.2% | 199.44% | 129.38% | 146.52% | 59.86% | 72.18% | 110.34% | 52.42% | 59.35% |
| Gross Profit | 401.63M | 363.85M | 339.44M | 353.52M | 466.31M | 329.12M | 233.32M | 229.67M | 292.95M | 354.31M | 303.1M | 205.37M | 63.79M | 28.11M | 78.78M | 84.83M | 107.19M | -26.5M | -47.02M | -53.92M | -79.95M | -136.37M | -102.36M | -61.03M | -15.22M | -24.36M | 42.05M | 19.43M | -7.2M | 59.9M | 39.8M |
| Gross Margin % | 24.77% | 23.23% | 23.64% | 24.85% | 27.8% | 21.82% | 18.43% | 18.61% | 22.46% | 25.54% | 24.26% | 21.38% | 7.7% | 5.57% | 12.33% | 13.88% | 21.05% | -8.87% | -18.69% | -23.36% | -42.66% | -133.7% | -81.2% | -99.44% | -29.38% | -46.52% | 40.14% | 27.82% | -10.34% | 47.58% | 40.65% |
| Gross Profit Growth % | - | 7.19% | -3.98% | -24.19% | 41.68% | 41.06% | 1.59% | -21.6% | -17.32% | 16.89% | 47.59% | 221.95% | 126.93% | -64.32% | -7.12% | -20.86% | 504.5% | 43.65% | 12.79% | 32.56% | 41.37% | -33.23% | -67.72% | -300.94% | 37.52% | -157.93% | 116.5% | 369.79% | -112.02% | 50.5% | 0.25% |
| Operating Expenses | 175.79M | 169.68M | 148.13M | -193.75M | 154.63M | 162.61M | 142.28M | 142.96M | 138M | 134.46M | 128.57M | 124.46M | 110.62M | 75.98M | 75.51M | 73.13M | 63.86M | 55.32M | 171.05M | 45.39M | 119.57M | 33.45M | 38.35M | 43.32M | 34.12M | 24.05M | 20.54M | 44.59M | 16.8M | 39.9M | 30.1M |
| OpEx % of Revenue | - | 10.83% | 10.31% | -13.62% | 9.22% | 10.78% | 11.24% | 11.58% | 10.58% | 9.69% | 10.29% | 12.96% | 13.36% | 15.05% | 11.82% | 11.97% | 12.54% | 18.51% | 67.97% | 19.66% | 63.79% | 32.79% | 30.42% | 70.6% | 65.87% | 45.91% | 19.61% | 63.87% | 24.14% | 31.69% | 30.75% |
| Selling, General & Admin | 85.94M | 83.19M | 74.96M | 72.45M | 80.28M | 77.22M | 63.97M | 67.38M | 64.95M | 66.8M | 65.44M | 62.79M | 58.78M | 42.92M | 44.41M | 48.24M | 39.99M | 31.94M | 33.22M | 31.6M | 24.51M | 17.42M | 21.3M | 22.61M | 17.09M | 14.49M | 9.91M | 8.71M | 8.7M | 9M | 8.4M |
| SG&A % of Revenue | - | 5.31% | 5.22% | 5.09% | 4.79% | 5.12% | 5.05% | 5.46% | 4.98% | 4.81% | 5.24% | 6.54% | 7.1% | 8.5% | 6.95% | 7.89% | 7.85% | 10.69% | 13.2% | 13.69% | 13.08% | 17.08% | 16.89% | 36.85% | 32.99% | 27.67% | 9.46% | 12.48% | 12.5% | 7.15% | 8.58% |
| Research & Development | 89.85M | 86.5M | 20.62M | 79.81M | 83.91M | 85.39M | 78.32M | 75.58M | 73.05M | 67.66M | 63.13M | 61.67M | 51.84M | 33.06M | 31.09M | 24.89M | 23.88M | 23.38M | 14.97M | 13.79M | 14.98M | 16.03M | 17.05M | 20.71M | 17.03M | 9.56M | 8.96M | 9.24M | 8.1M | 7.3M | 4.1M |
| R&D % of Revenue | - | 5.52% | 1.44% | 5.61% | 5% | 5.66% | 6.19% | 6.12% | 5.6% | 4.88% | 5.05% | 6.42% | 6.26% | 6.55% | 4.87% | 4.07% | 4.69% | 7.82% | 5.95% | 5.97% | 7.99% | 15.72% | 13.53% | 33.75% | 32.88% | 18.25% | 8.56% | 13.23% | 11.64% | 5.8% | 4.19% |
| Other Operating Expenses | 0 | 0 | 52.54M | -346.01M | -9.56M | 0 | 0 | 0 | 0 | 0 | 0 | -190K | -140K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 80.07M | 0 | 0 | 0 | 0 | 0 | 1.66M | 26.64M | 0 | 23.6M | 17.6M |
| Operating Income | 225.84M | 194.17M | 191.31M | 547.26M | 311.67M | 166.51M | 91.03M | 86.72M | 154.94M | 219.84M | 175.15M | 81.89M | -103.56M | -55.34M | -2.51M | 10.21M | 43.32M | -81.82M | -218.07M | -99.31M | -119.45M | -169.81M | -140.71M | -104.35M | -49.34M | -48.41M | -4.41M | -25.17M | -24M | 20M | 9.7M |
| Operating Margin % | 13.93% | 12.4% | 13.32% | 38.47% | 18.58% | 11.04% | 7.19% | 7.03% | 11.88% | 15.85% | 14.02% | 8.53% | -12.51% | -10.96% | -0.39% | 1.67% | 8.51% | -27.38% | -86.65% | -43.02% | -63.73% | -166.5% | -111.62% | -170.04% | -95.25% | -92.43% | -4.2% | -36.05% | -34.48% | 15.89% | 9.91% |
| Operating Income Growth % | - | 1.49% | -65.04% | 75.59% | 87.18% | 82.91% | 4.98% | -44.03% | -29.52% | 25.51% | 113.88% | 179.08% | -87.16% | -2104.58% | -124.59% | -76.44% | 152.95% | 62.48% | -119.58% | 16.86% | 29.66% | -20.69% | -34.84% | -111.48% | -1.94% | -998.89% | 82.5% | -4.86% | -220% | 106.19% | -58.55% |
| EBITDA | 536.31M | 497.28M | 457.59M | 805.28M | 604.31M | 437.22M | 331.56M | 301.19M | 369.33M | 428.25M | 372.76M | 249.93M | 139.8M | 109.49M | 171.07M | 172.89M | 186.35M | 61.59M | -79.27M | 55.03M | 35.35M | -24.96M | -19.64M | -49.74M | -30.52M | -21.76M | 21.51M | 1.48M | -21.2M | 43.6M | 27.3M |
| EBITDA Margin % | 33.07% | 31.75% | 31.86% | 56.6% | 36.02% | 28.99% | 26.2% | 24.41% | 28.32% | 30.87% | 29.83% | 26.02% | 16.88% | 21.68% | 26.78% | 28.29% | 36.59% | 20.61% | -31.5% | 23.84% | 18.86% | -24.47% | -15.58% | -81.05% | -58.92% | -41.55% | 20.53% | 2.12% | -30.46% | 34.63% | 27.89% |
| EBITDA Growth % | 11.78% | 8.67% | -43.18% | 33.26% | 38.22% | 31.87% | 10.08% | -18.45% | -13.76% | 14.89% | 49.15% | 78.78% | 27.68% | -36% | -1.05% | -7.22% | 202.57% | 177.7% | -244.04% | 55.69% | 241.6% | -27.11% | 60.52% | -62.96% | -40.25% | -201.17% | 1356.47% | 106.97% | -148.62% | 59.71% | -14.15% |
| D&A (Non-Cash Add-back) | 310.47M | 303.11M | 266.28M | 258.02M | 292.64M | 270.71M | 240.53M | 214.47M | 214.39M | 208.41M | 197.61M | 168.03M | 243.36M | 164.82M | 173.59M | 162.68M | 143.02M | 143.4M | 138.81M | 154.34M | 154.79M | 144.85M | 121.07M | 54.61M | 18.82M | 26.64M | 25.92M | 26.64M | 2.8M | 23.6M | 17.6M |
| EBIT | 261.45M | 194.17M | 185.04M | 589.29M | 297.66M | 162.41M | 95.44M | 97.84M | 154.94M | 214.39M | 223.74M | 80.9M | -46.84M | -63.22M | 3.28M | 11.7M | 43.32M | -81.82M | -86.12M | -99.31M | -120.96M | -169.81M | -140.71M | -104.35M | -49.34M | -48.41M | 21.51M | -25.17M | -23.96M | 20.02M | 9.7M |
| Net Interest Income | 45.13M | 46.21M | 49.63M | 35.54M | 7.91M | -6.32M | -7.57M | 980K | -12.12M | -8.47M | -17.33M | -14.97M | -47.03M | -35.1M | -33.5M | -45.28M | -47.12M | -45.71M | -17.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 45.13M | 46.21M | 55.49M | 39.99M | 13.6M | 5.37M | 8.48M | 12.95M | 10.76M | 4.15M | 0 | 0 | 0 | 18.73M | 10.24M | 0 | 25.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 5.86M | 4.44M | 5.69M | 11.69M | 16.06M | 11.97M | 22.88M | 12.62M | 17.33M | 14.97M | 47.03M | 53.83M | 43.75M | 45.28M | 72.92M | 45.71M | 17.57M | 0 | 0 | 0 | 0 | 84K | 2.06M | 0 | 25M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 45.13M | 46.21M | 26.11M | 37.58M | -19.7M | -11.41M | -2.35M | 4.3M | -15.63M | -18.07M | 35.44M | -123.3M | 77.45M | -61.71M | -60.43M | -7.38M | -72.86M | -43.66M | -8.47M | -34.88M | -46.97M | -33.27M | 2.94M | -84K | -2.06M | 9.88M | 916K | 2.29M | 2.76M | 3.2M | 2.6M |
| Pretax Income | 270.97M | 240.38M | 217.43M | 584.84M | 291.97M | 155.1M | 88.69M | 91.02M | 139.32M | 201.77M | 210.6M | -41.41M | -26.11M | -117.05M | -62.94M | 2.83M | -29.54M | -125.48M | -105.86M | -99.22M | -38.78M | -167.43M | -108.02M | -104.44M | -51.4M | -38.52M | -3.49M | -22.87M | -21.2M | 23.2M | 12.3M |
| Pretax Margin % | 16.71% | 15.35% | 15.14% | 41.11% | 17.4% | 10.28% | 7.01% | 7.38% | 10.68% | 14.54% | 16.85% | -4.31% | -3.15% | -23.18% | -9.85% | 0.46% | -5.8% | -41.99% | -42.06% | -42.98% | -20.69% | -164.16% | -85.7% | -170.18% | -99.23% | -73.55% | -3.33% | -32.76% | -30.46% | 18.43% | 12.56% |
| Income Tax | 24.31M | 21.57M | 10.21M | 65.31M | 25.5M | 1.02M | 5.4M | 2.95M | 5.94M | -99.89M | 1.43M | -12.28M | -24.74M | -9.39M | 7.33M | 21.36M | 12.83M | -5.02M | 575K | 34.88M | -32.52M | 33.27M | -2.94M | 9.91M | 0 | 0 | 500K | -2.4M | -5.7M | 4M | 2.3M |
| Effective Tax Rate % | 8.97% | 8.97% | 4.69% | 11.17% | 8.73% | 0.66% | 6.09% | 3.24% | 4.26% | -49.51% | 0.68% | 29.65% | 94.75% | 8.02% | -11.64% | 754.31% | -43.44% | 4% | -0.54% | -35.16% | 83.86% | -19.87% | 2.72% | -9.49% | 0% | 0% | -14.33% | 10.52% | 26.89% | 17.24% | 18.7% |
| Net Income | 245.36M | 220.47M | 207.86M | 518.49M | 264.57M | 150.01M | 82.3M | 90.05M | 135.58M | 298.01M | 203.92M | -29.65M | 4.26M | -107.66M | -70.27M | -18.53M | -42.37M | -120.46M | -106.44M | -134.2M | -86.93M | -203.08M | -137.77M | -114.26M | -51.4M | -38.52M | -3.99M | -20.47M | -15.5M | 19.2M | 10M |
| Net Margin % | 15.13% | 14.08% | 14.47% | 36.44% | 15.77% | 9.95% | 6.5% | 7.3% | 10.4% | 21.48% | 16.32% | -3.09% | 0.51% | -21.32% | -11% | -3.03% | -8.32% | -40.31% | -42.29% | -58.13% | -46.38% | -199.12% | -109.29% | -186.19% | -99.23% | -73.55% | -3.81% | -29.32% | -22.27% | 15.25% | 10.21% |
| Net Income Growth % | 20.65% | 6.06% | -59.91% | 95.98% | 76.37% | 82.27% | -8.6% | -33.58% | -54.51% | 46.14% | 787.84% | -795.45% | 103.96% | -53.21% | -279.22% | 56.26% | 64.83% | -13.18% | 20.69% | -54.38% | 57.2% | -47.41% | -20.57% | -122.29% | -33.44% | -865.71% | 80.51% | -32.05% | -180.73% | 92% | -50.98% |
| Net Income (Continuing) | 246.66M | 218.81M | 207.22M | 519.53M | 266.47M | 154.07M | 83.29M | 88.07M | 133.38M | 301.66M | 209.17M | -29.13M | -1.37M | -107.66M | -70.27M | -18.53M | -42.37M | -120.46M | -106.44M | -134.2M | -167.93M | -203.08M | -137.77M | -114.26M | -51.4M | -38.52M | -3.99M | -20.47M | -15.5M | 19.2M | 10M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | -13.14M | -5.46M | -2.64M | -6.62M | -2.91M | -7.82M | -6.76M | -6.35M | -7.42M | -11.76M | -9.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.15 | 1.94 | 1.85 | 4.66 | 2.39 | 1.37 | 0.76 | 0.84 | 1.32 | 2.90 | 2.09 | -0.40 | 0.07 | -2.72 | -3.17 | -0.90 | -2.67 | -10.46 | -11.70 | -16.72 | -15.59 | -37.74 | -26.47 | -35.54 | -24.15 | -28.49 | -4.32 | -23.04 | -17.47 | 20.43 | 11.25 |
| EPS Growth % | 18.78% | 4.86% | -60.3% | 94.98% | 74.45% | 80.26% | -9.52% | -36.36% | -54.48% | 38.76% | 622.5% | -671.43% | 102.57% | 14.2% | -252.22% | 66.29% | 74.47% | 10.6% | 30.02% | -7.25% | 58.69% | -42.58% | 25.52% | -47.16% | 15.23% | -559.49% | 81.25% | -31.88% | -185.51% | 81.6% | -56.83% |
| EPS (Basic) | - | 1.97 | 1.87 | 4.70 | 2.42 | 1.39 | 0.77 | 0.85 | 1.35 | 3.08 | 2.33 | -0.40 | 0.08 | -2.72 | -3.17 | -0.90 | -2.67 | -10.46 | -11.70 | -16.72 | -15.59 | -37.74 | -26.47 | -35.54 | -24.15 | -28.49 | -4.32 | -23.04 | -17.47 | 21.47 | 11.25 |
| Diluted Shares Outstanding | 114.34M | 113.6M | 112.34M | 111.22M | 110.75M | 109.8M | 108.48M | 107.44M | 102.52M | 105.95M | 101.3M | 74.37M | 63.18M | 39.63M | 22.17M | 20.65M | 15.89M | 11.51M | 9.1M | 8.03M | 5.58M | 5.38M | 5.2M | 3.22M | 2.13M | 1.35M | 923.58K | 888.46K | 887.08K | 939.59K | 888.59K |
| Basic Shares Outstanding | 114.34M | 113.64M | 111.15M | 110.29M | 109.35M | 108.28M | 107.25M | 106.26M | 100.4M | 96.65M | 87.48M | 74.37M | 51.8M | 39.63M | 22.17M | 20.65M | 15.89M | 11.51M | 9.1M | 8.03M | 5.58M | 5.38M | 5.2M | 3.22M | 2.13M | 1.35M | 923.58K | 888.46K | 887.08K | 894.23K | 888.59K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 1.47% | 1.26% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 68.75% | 198% |
Geopolitical and regional instability
According to the latest quarterly filings, Tower Semiconductor has achieved a notable revenue acceleration, with year-over-year growth reaching 15.5% in 2026Q1, marking a significant recovery from the contraction observed in early 2024 when top-line figures declined by 8.0% during the first quarter of that year.
The recent revenue expansion suggests that the company is successfully capturing demand in its core specialty analog segments, likely benefiting from the 5G-Advanced transition. Investors should monitor whether this growth trajectory is sustainable or if it remains sensitive to the cyclical volatility inherent in the broader semiconductor foundry market.
As reported in financial statements, Tower's gross margin has fluctuated between 20.4% and 26.8% over the last ten quarters, highlighting a structural sensitivity to fabrication utilization rates that remains a primary determinant of the company's ability to absorb high fixed costs associated with its specialized manufacturing infrastructure.
The improvement to 26.8% in 2026Q1 suggests that management is effectively optimizing capacity, though the historical volatility indicates that even minor volume shifts can exert pressure on profitability. This margin profile appears consistent with a specialty foundry model that relies heavily on high-value, low-volume process nodes.
Based on reported figures, Tower has demonstrated improved operating leverage, with operating income rising to $64.6 million in 2026Q1 from $34.0 million in 2024Q1, while maintaining disciplined SG&A expenses that have remained relatively flat despite the significant increase in total revenue over the same two-year period.
This divergence between revenue growth and overhead suggests that the company is successfully scaling its operations without incurring proportional administrative costs. Such efficiency may indicate that the current infrastructure is well-positioned to handle increased throughput without requiring substantial additional investment in non-production headcount.
Analysis of the income statement reveals that net income has occasionally outpaced operating income, as seen in 2025Q4 where net margins reached 18.2%, suggesting that non-operating items or tax benefits may be providing periodic support to the bottom line beyond core foundry operations.
Investors should exercise caution when evaluating these earnings, as the absence of significant stock-based compensation in recent quarters contrasts with historical periods of higher dilution. The sustainability of these net margins warrants further investigation into the underlying drivers of non-operating income and their potential for future recurrence.
While the company maintains a robust balance sheet, the persistent regional instability in Israel, as noted in recent risk disclosures, presents a unique threat to operational continuity that may not be fully captured by the current valuation multiples relative to global foundry peers like GlobalFoundries.
The reliance on specific geographic hubs for fabrication creates a potential vulnerability that could disrupt supply chains regardless of the company's technical moat. Market participants should consider whether the current valuation adequately discounts these regional risks or if the stock remains susceptible to sudden sentiment shifts based on geopolitical headlines.
Quick answers to the most common questions about buying TSEM stock.
For fiscal year 2025, Tower Semiconductor Ltd. (TSEM) reported total revenue of $1.57B. This represents a 1499.7% increase compared to $97.9M in 1996.
Tower Semiconductor Ltd. (TSEM) is profitable, generating $220.5M in net income for the fiscal year ending 2025 with a net profit margin of 14.1%.
Tower Semiconductor Ltd. (TSEM) reported an operating income of $194.2M, resulting in an operating profit margin of 12.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Tower Semiconductor Ltd. (TSEM) generated $363.9M in gross profit for the year, representing a gross profit margin of 23.2%. This demonstrates the company's core pricing power and production efficiency.