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Third Quarter 2026 Financial Results Conference Call November 2, 2026 Supporting Slides
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Safe Harbor This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. For example, statements regarding expected (i) customer demand, (ii) utilization and cross utilization of our Fabs, (iii) demand from our end markets, (iv) market and technology trends, and (v) results regarding revenues, cash flow, margins and net profits are all forward-looking statements. Actual results may differ materially from those projected or implied by such forward-looking statements due to various risks and uncertainties applicable to Tower Semiconductor’s business as described in the reports filed by Tower Semiconductor Ltd. (“Tower”) with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority (“ISA”), including the risks identified under the heading "Risk Factors" in Tower’s most recent filings on Forms 20-F and 6-K. No assurances can be given that any of the events anticipated by the forward- looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations or financial condition of Tower Semiconductor. In addition, some of the financial information in this presentation, is non-GAAP financial measures, including, but not limited to, EBITDA, Cash, debt and Net Cash. These non-GAAP financial measures have the same definition as appear in our previously filed quarterly financial results related announcements and/ or other public filings. Tower Semiconductor is providing this information as of the date of this presentation and expressly disclaims any obligation to update any of the forward-looking statements or other information contained in this presentation as a result of new information, future events or otherwise. 2
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Third Quarter 2026 Financial Results Highlights and Fourth Quarter 2026 Outlook Q3 2026 revenue: $526 million | Q3 2026 Net profit: $120 million 3 • Q4 2026 revenue guidance of $600 million, +/- 5%. • Mid-range guidance represents growth of 36% year-over-year and 14% quarter-over-quarter.
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Q3 Year-over-Year Revenue Breakdown by Technology Q3 2025 $396 Million Revenue Q3 2026 $526 Million Revenue 4
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Balance Sheet ($ in million) 5 September 30, December 31, 2026 2025 ASSETS Cash and cash equivalents 251 235 Short-term deposits 1,222 917 Trade accounts receivable 227 223 Inventories 263 257 Other current assets 48 78 Total current assets 2,011 1,710 Property and equipment, net 1,825 1,463 Other long-term assets, net 181 149 TOTAL ASSETS 4,017 3,322 LIABILITIES AND SHAREHOLDERS' EQUITY Short-term debt 13 28 Trade accounts payable 194 124 Customer prepayment and deferred revenue 249 26 Other current liabilities 85 86 Total current Liabilities 541 264 Long-term debt 140 133 Long-term customers' advances 92 2 Other long-term liabilities 36 18 TOTAL LIABILITIES 809 417 SHAREHOLDERS’ EQUITY 3,208 2,905 TOTAL LIABILITIES & EQUITY 4,017 3,322
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Q3‘26 P&L vs. Q2’26 P&L (in thousands of $) 6 Three months ended September 30, June 31, 2026 2026 REVENUE 526,161 460,079 COST OF REVENUE 347,402 322,307 GROSS PROFIT 178,759 137,772 Research and development 26,625 23,569 Marketing, general and administrative 24,999 23,913 OPERATING PROFIT 127,135 90,290 Financing and other income, net 11,943 15,902 PROFIT BEFORE INCOME TAX 139,078 106,192 INCOME TAX EXPENSE, NET (19,193) (15,573) NET PROFIT 119,885 90,619 Non controlling interest 371 150 NET PROFIT ATTRIBUTABLE TO THE COMPANY 120,256 90,769 BASIC EARNINGS PER SHARE 1.06 0.80 DILUTED EARNINGS PER SHARE 1.05 0.79 GAAP NET PROFIT 120,256 90,769 Stock based compensation and amortization of acquired intangible assets 11,042 9,941 ADJUSTED NET PROFIT 131,298 100,710 ADJUSTED EARNINGS PER SHARE: Basic 1.16 0.89 Diluted 1.15 0.88
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Q3‘26 P&L vs. Q3’25 P&L (in thousands of $) 7 Three months ended September 30, September 30, 2026 2025 REVENUE 526,161 395,667 COST OF REVENUE 347,402 302,622 GROSS PROFIT 178,759 93,045 Research and development 26,625 22,056 Marketing, general and administrative 24,999 20,409 OPERATING PROFIT 127,135 50,580 Financing and other income, net 11,943 10,491 PROFIT BEFORE INCOME TAX 139,078 61,071 INCOME TAX EXPENSE, NET (19,193) (7,625) NET PROFIT 119,885 53,446 Non controlling interest 371 199 NET PROFIT ATTRIBUTABLE TO THE COMPANY 120,256 53,645 BASIC EARNINGS PER SHARE 1.06 0.48 DILUTED EARNINGS PER SHARE 1.05 0.47 GAAP NET PROFIT 120,256 53,645 Stock based compensation and amortization of acquired intangible assets 11,042 9,111 ADJUSTED NET PROFIT 131,298 62,756 ADJUSTED EARNINGS PER SHARE: Basic 1.16 0.56 Diluted 1.15 0.55
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YTD‘26 P&L vs. YTD’25 P&L (in thousands of $) 8 Nine months ended September 30, 2026 2025 REVENUE 1,399,871 1,125,898 COST OF REVENUE 972,389 879,656 GROSS PROFIT 427,482 246,242 Research and development 73,724 61,646 Marketing, general and administrative 71,768 61,253 OPERATING PROFIT 281,990 123,343 Financing and other income, net 37,363 35,476 PROFIT BEFORE INCOME TAX 319,353 158,819 INCOME TAX EXPENSE, NET (41,284) (20,064) NET PROFIT 278,069 138,755 Non controlling interest (2,012) 1,583 NET PROFIT ATTRIBUTABLE TO THE COMPANY 276,057 140,338 BASIC EARNINGS PER SHARE 2.44 1.25 DILUTED EARNINGS PER SHARE 2.41 1.24 GAAP NET PROFIT 276,057 140,338 Stock based compensation and amortization of acquired intangible assets 30,424 30,041 ADJUSTED NET PROFIT 306,481 170,379 ADJUSTED EARNINGS PER SHARE: Basic 2.71 1.52 Diluted 2.68 1.50
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Thank You Contact: Liat Avraham, Investor Relations Email: liatavra@towersemi.com