Tower Semiconductor stock gets record Q4 revenue outlook

Tower Semiconductor reported record third-quarter results on Monday, November 2, 2026, and issued stronger fourth-quarter revenue guidance. In its official release, the Israeli analog semiconductor foundry said revenue for the period ended September 30 reached 526 million US dollars, up 33 percent from 396 million US dollars a year earlier.

Gross profit climbed 92 percent to 179 million US dollars from 93 million US dollars. Operating profit reached 127 million US dollars, excluding non-recurring items, compared with 51 million US dollars in the prior-year quarter. Net profit excluding non-recurring items was 120 million US dollars, equal to a 23 percent net margin. The company reported basic earnings per share of 1.06 US dollars and diluted earnings per share of 1.05 US dollars.

Fourth-Quarter Guidance Raises Growth Bar

Tower guided to fourth-quarter revenue of 600 million US dollars, with an upward or downward range of 5 percent. The midpoint represents 36 percent year-over-year growth and 14 percent sequential growth. The company said the outlook would support full-year 2026 revenue of 2 billion US dollars and an annualized revenue run rate of 2.4 billion US dollars at year-end.

Chief Executive Officer Russell Ellwanger said the guidance marked the beginning of what Tower considers its strongest growth phase. He also said the company aims to enter 2027 without the semiconductor industry's typical first-quarter seasonality, citing visibility into sequential revenue and margin growth. Those statements are forward-looking and depend on customer demand, capacity execution and the broader semiconductor cycle.

Silicon Photonics Leads Connectivity Demand

Management identified infrastructure demand, particularly silicon photonics and silicon germanium, as a key driver of high-speed connectivity growth. Tower is targeting a 1.1 billion US dollar annualized silicon photonics revenue run rate in the fourth quarter, which would be five times the business's 2025 revenue. An annualized run rate is not the same as revenue recognized during the full year.

The company said capacity investments, including the Track-1 Japan 300mm buildout, are progressing ahead of schedule. Tower also said customer contracts are being extended through 2029, supporting its longer-term capacity and margin plans. For investors, the central execution question is whether additional manufacturing capacity can be qualified quickly enough to meet demand without eroding profitability.

Stock Quote And Investor Context

Tower Semiconductor stock traded at 152.25 euros on Lang & Schwarz at 11:38 CET on Wednesday, November 4, 2026. The real-time quote of Tower Semiconductor stock provides the latest market indication.

The broader US equity market remains an important backdrop for semiconductor shares, with investors weighing demand for connectivity infrastructure against cyclical, geopolitical and capacity risks. Current market reports provide the wider market context.

More news and analyses on Tower Semiconductor stock will follow the company's next operating updates and capacity milestones.