Tel Aviv Earnings Season Gains Momentum: Key Companies Reporting This Week

Last week, Teva gave us a reminder of how the earnings season really works. On paper, its second quarter looked like a disappointment: the company went from a net profit of $282 million to a loss of $576 million, and the adjusted profit plummeted to just one or two cents per share, well below expectations.

And yet, the stock jumped sharply. The reason is simple: three of Teva's flagship drugs beat the forecasts, and the company raised its sales and profit forecast for the entire year. The bottom line: this season, the market trades based on the story and the forecast, not necessarily the prominent number in the headline.

With this lesson in hand, the earnings season in Tel Aviv shifts into high gear this week. Heavyweight companies from some of the most important sectors on the stock exchange are taking the stage.

Tower (Tuesday) arrives as the star of the year, with a jump of about 81% since the beginning of 2026. The chip manufacturer from Migdal HaEmek has already noted that it expects record revenue of $455 million for the quarter, a growth of 22% compared to last year. The question is mainly about the growth rate of the silicon photonics activity—the field in which the company is already signed on orders totaling $1.3 billion for 2027, on the back of demand for artificial intelligence infrastructure. Any hint regarding the forecast for the next quarter will move the stock.

Nova (Thursday) provides measurement and process control equipment to chip manufacturers and is benefiting from the same wave of investments in chips and memory for AI. It enters the report with a streak of beating forecasts, but also with an exceptionally high valuation. The meaning for the investor: when such a company reports, a small weakness in the forecast is enough to trigger a sharp decline, even if the quarter itself is good.

Bezeq (Wednesday) is the exact opposite—the "boring" and stable stock that almost every pension fund holds. In the previous quarter, it showed a 4.2% increase in profit and a 74% jump in free cash flow, and the number of fiber subscribers crossed the million mark.

El Al (Wednesday) carries the big drama. The previous quarter took a hard hit from Operation "Lion's Roar" and the closure of Ben Gurion Airport for about 40 days, with the company estimating a total damage of about $145 million, of which about $55 million are carried over specifically to the second quarter. On the other hand, since mid-April, the demand for flights has exploded ahead of the summer. This report is essentially a tug-of-war between a difficult quarter and a horizon that is recovering rapidly.

Nice (Wednesday) is the opposite story of Tower—the stock that crashed from the top of the stock exchange, with a further decline of about 17% this year. The accounting profit plummeted following the acquisition of Cognigy and investments concentrated in the first half of the year, and the multiple contracted to an exceptionally low level for a software company. The big question that will hover over the report: is the artificial intelligence threat to Nice's service center business materializing, or is it actually its next growth engine?

Around this quintet are other prominent names—Enlight, which jumped about 80% this year on the back of demand for electricity and renewable energy, alongside Gilat, Ormat, and ICL, which have fallen since the beginning of the year.

Why is all this important to you? Because even if you haven't bought a single stock, through index funds, savings funds, advanced study funds, and pensions, most of you are exposed to these companies. A big surprise this week, for better or worse, touches directly on your savings. And as Teva showed—it is worth looking at the forecast, not just the bottom line.