Tower Semiconductor stock posts record Q3 as Q4 guidance reaches $600 million

Tower Semiconductor reported record third-quarter results on Monday, November 2, 2026, and set a higher revenue target for the final quarter. In its official release, the Israeli specialty foundry said third-quarter revenue reached 526 million US dollars, up 33 percent from the year-earlier period.

Record results reset the outlook

Gross profit rose to 179 million US dollars, while operating profit reached 127 million US dollars excluding non-recurring items. Net profit was 120 million US dollars on the same basis, equal to a 23 percent margin, and diluted earnings amounted to 1.05 US dollars per share.

For the fourth quarter, Tower guided to revenue of 600 million US dollars, with a range of plus or minus 5 percent. The midpoint implies 36 percent year-over-year growth and 14 percent sequential growth, supporting management's target of 2 billion US dollars in 2026 revenue and a 2.4 billion US dollar annualized revenue run rate at year-end.

Capacity is the next test

Chief Executive Officer Russell Ellwanger said Tower aims to enter 2027 with sequential revenue growth rather than the semiconductor industry's typical first-quarter seasonality. Management also targets a 1.1 billion US dollar annualized silicon photonics revenue run rate in the fourth quarter.

The company said infrastructure demand for silicon photonics and silicon germanium is driving high-speed connectivity growth. Its Track-1 Japan 300mm expansion is progressing ahead of schedule, while customer contracts are being extended through 2029. For investors, the central issue is whether added capacity can meet demand without weakening profitability.

Tower Semiconductor stock traded at 130.25 euros on Lang & Schwarz at 18:10 CET on Tuesday, November 10, 2026.

The TA-35 market environment remains relevant for investors assessing Israeli technology shares.

More news and analyses on Tower Semiconductor stock cover further developments in the company's growth program.