Tower Semiconductor Beats Expectations, Raises Growth Forecast for 2026

Tower Semiconductor, the chip manufacturer based in Migdal HaEmek, reported a 24% revenue increase in Q2 2026, reaching $460 million, surpassing its prior forecast of $455 million. The company anticipates an accelerated growth rate of 31% in the current quarter, which would push quarterly revenues beyond $500 million for the first time. Tower's stock rose over 3% in pre-market trading on Nasdaq following the announcement.

In addition to revenue growth, Tower improved its profitability significantly. Operating profit hit a record $90 million in Q2 2026, a 2.3-fold increase compared to the same quarter last year. Net profit reached $91 million, representing 20% of total revenues. CEO Russell Alwanger highlighted strong and sustained demand in Tower's core activities, noting record sales and profitability, ongoing technological leadership, and plans to expand production capacity through 2026.

Tower also revealed strategic investments to further increase manufacturing capacity in response to accelerated customer demand. The company’s SiPho technology segment showed triple-digit sales growth compared to Q2 2025, with an annualized sales rate of $680 million in Q2 2026, up from $180 million a year earlier. Tower expects to exceed a $1 billion annualized sales rate by Q4 2026 and to maintain significant growth into 2027.