Tower Semiconductor Ltd.

Strong Q1 results and margin expansion (good) - Revenue: $414M, +15% YoY (vs. $358M in Q1’25). - Net profit: $65M, +62% YoY with 16% net margin (up from 11% in Q1’25). - Gross profit: $111M, +52% YoY. - EPS: $0.58 basic / $0.57 diluted (both ~+61–63% YoY). - Margin driver (explained): Gross margin progression follows their published model—incremental revenue flows at higher gross profit contribution (they cited movement from 20% to 27% vs the model’s path to 39% at full build-out).

Guidance: Q2 expected to be the company’s peak revenue quarter (good/outlook) - Q2’26 revenue guidance: $455M ±5% → described as the highest revenue quarter in Tower’s history. - Implies +22% YoY vs Q2’25 and +10% QoQ growth. - Company reiterated its goal of quarter-over-quarter revenue and margin growth throughout 2026.

Photonics demand visibility via large customer commitments + major prepayments (very good) - They highlighted SiPho (silicon photonics) long-term commitments totaling $1.3B revenue in 2027, plus ~$290M already received as prepayments from largest customers. - CFO noted prepayments are recorded on the balance sheet as customer advances and included in cash from operating activities. - Management emphasized this is not the full expressed demand and is not limited to those customers (also >50 active SiPho customers beyond the contracted base).