Tower Semiconductor
Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. Based in Migdal Haemek.
Tower Semiconductor: net income sharply up (+124.2%), sales sharply up (+33.0%), operating income sharply up (+151.4%).
- Net income sharply upQtr. as of 30/09/2026
Net income: $120M, vs. $54M a year earlier, i.e. +124.2%.
- Sales sharply upQtr. as of 30/09/2026
Revenue: $526M, vs. $396M a year earlier, i.e. +33.0%.
- Operating income sharply upQtr. as of 30/09/2026
Operating income: $127M, vs. $51M a year earlier, i.e. +151.4%.
- Gross margin upQtr. as of 30/09/2026
Gross margin: 34.0%, vs. 23.5% a year earlier.
- Cash flow downFY 2025
Operating cash flow: $395M, vs. $449M in 2024, i.e. −11.9%.
How the share reacted to the results
After its results, Tower Semiconductor shares fell 6.7%. Over the same period, the broad market (S&P 500) fell 0.5%, and companies in the same sector did −3.5% (median of 14 companies).
Results published on 02/11/2026 at 14:30 (Israel time), before the Wall Street open. Calculation: last close before the release (30/10/2026) compared with the first close after (02/11/2026). Source: Yahoo Finance. A share price moves for many reasons; the release is only one of them.
What the market pays, vs. the sector
P/E at fiscal year end, and today
Year-end price × shares / net income for the year; loss-making years are not shown
P/E calculated on net income (fiscal year ended 31/12/2025). Cross-check: another source (Yahoo Finance) shows a P/E of 50.8. The gap usually comes from the period used (fiscal year or trailing 12 months) or from one-off items: check the reports. Sector median: companies in the Semiconductors group tracked here. Prices: Yahoo Finance; market cap cross-checked with the Tel Aviv Stock Exchange for Israeli stocks. These ratios describe a price, not a value: none of them says whether the share is expensive or cheap.
P/E ranking
Tower Semiconductor is 2e Out of 3: a P/E in the middle of the group.
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Business and results
Revenue
in $M
Net income
In $M, losses in red
Margins
Net debt
Financial debt − cash, in $M
Summary financial statements
Swipe the table to see previous years
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 1,508 | 1,678 | 1,423 | 1,436 | 1,566 |
| Growth | — | +11.2% | −15.2% | +0.9% | +9.1% |
| Gross margin | 21.8% | 27.8% | 24.8% | 23.6% | 23.2% |
| Operating income | 167 | 312 | 547 | 191 | 194 |
| Operating margin | 11.0% | 18.6% | 38.5% | 13.3% | 12.4% |
| Net income | 150 | 265 | 518 | 208 | 220 |
| Net margin | 9.9% | 15.8% | 36.4% | 14.5% | 14.1% |
| Diluted EPS | 1.4 | 2.4 | 4.7 | 1.9 | 1.9 |
| EBITDA | 437 | 604 | 805 | 458 | 497 |
| Operating cash flow | 421 | 530 | 677 | 449 | 395 |
| Investments | 314 | 366 | 445 | 436 | 444 |
| Free cash flow | 107 | 163 | 232 | 13 | −49 |
| Cash | 211 | 341 | 261 | 272 | 235 |
| Financial debt | 231 | 210 | 232 | 181 | 162 |
| Net debt | 20 | −131 | −29 | −91 | −74 |
| Net debt / EBITDA | 0,0 x | n.s. | n.s. | n.s. | n.s. |
| Interest coverage | 22,8 x | 54,8 x | 123,1 x | 47,5 x | 53,1 x |
| Equity | 1,622 | 1,891 | 2,432 | 2,653 | 2,919 |
| Return on equity | 9.2% | 14.0% | 21.3% | 7.8% | 7.6% |
In $M unless stated. EBITDA = operating income + depreciation and amortization. Net debt = financial debt − cash. Free cash flow = operating cash flow − capital expenditure. n.m. = not meaningful.
Quality of the accounts: three cross-check models
Quality of the accounts, seen through three models
Three well-known academic models, calculated only from the published accounts (last fiscal year compared with the previous one). These are signals to cross-check, not verdicts: they say neither whether the company is reliable, nor whether the share is a good investment.
Financial strength · Piotroski
Nine simple tests on profitability, debt, liquidity and efficiency.
- ✓ Positive net income
- ✓ Positive operating cash flow
- ✕ Return on assets up
- ✓ Operating cash flow above net income
- ✓ Long-term debt stable or down (relative to assets)
- ✓ Current ratio up
- ✓ No significant share issuance (increase of less than 1%)
- ✕ Gross margin up
- ✓ Asset turnover up
Earnings manipulation · Beneish
Eight ratios that flag account profiles often associated with "embellished" results. Usual threshold: −1.78. Here, the score exceeds this threshold: check the reports.
Distress risk · Altman Z″
Version without market data. Below 1.1: warning sign; above 2.6: healthy zone. The model penalizes an accumulated deficit or large share buybacks, which reduce equity.
Methods: Piotroski (2000), Beneish (1999, 8 variables), Altman Z″ (1995). Calculations redone from SEC XBRL data.
Company overview
Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. It provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensors, non-imaging sensors, wafers, and integrated power management. The company also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical device markets. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.
Source: official company profile (Yahoo Finance), summary. Website: towersemi.com
No dividend paid over the past five years (source: Yahoo Finance).