Tower Semiconductor stock: Q4 guidance raises growth stakes

Tower Semiconductor reported record third-quarter results on November 2, 2026, and raised its revenue outlook for the final quarter. The company's official release said third-quarter revenue reached 526 million US dollars, up 33 percent year over year.

Tower Semiconductor stock traded at 146.00 euros on Lang & Schwarz at 17:29 CET on Wednesday, November 11, 2026. Since the relevant own report at 11:34 CET the same day, the quote moved from 140.75 euros to 146.00 euros, an increase of 3.73 percent.

Record Results Lift the Outlook

Gross profit reached 179 million US dollars, while operating profit was 127 million US dollars excluding non-recurring items. Net profit excluding non-recurring items came to 120 million US dollars, equal to a 23 percent margin, with diluted earnings of 1.05 US dollars per share.

For the fourth quarter, management guides to revenue of 600 million US dollars, with a range of plus or minus 5 percent. The midpoint represents 36 percent year-over-year growth and 14 percent sequential growth, supporting the company'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 Becomes 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. He also pointed to infrastructure demand in silicon photonics and silicon germanium as drivers of high-speed connectivity growth.

Management targets an annualized silicon photonics revenue run rate of 1.1 billion US dollars in the fourth quarter, five times the 2025 level. The Track-1 Japan 300mm buildout is progressing ahead of schedule, while customer contracts are being extended through 2029.

For investors, the stronger outlook improves the operating growth case but raises the importance of execution. Tower must convert demand into shipments while protecting margins as manufacturing capacity expands.

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