Tower Semiconductor stock: Record quarter lifts Q4 outlook

Published on 11/09/2026 at 18:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tower Semiconductor stock follows record third-quarter results and a stronger fourth-quarter outlook. Capacity expansion now becomes the key execution test.

Record results raise execution demands

Third-quarter revenue reached 526 million US dollars, up 33 percent year over year.
Tower Semiconductor guided for fourth-quarter revenue of 600 million US dollars, with a range of plus or minus 5 percent.
Silicon photonics demand and capacity expansion are central to the growth outlook.

Tower Semiconductor, IL0010823792, Illustration mit AI erstellt.

Tower Semiconductor reported record third-quarter results on Monday, November 2, 2026, and raised its revenue outlook for the final quarter. The company release said revenue reached 526 million US dollars for the three months ended September 30, up 33 percent from the prior-year quarter.

Record quarter strengthens outlook

Gross profit rose to 179 million US dollars, 92 percent above the comparable quarter. Operating profit reached 127 million US dollars, while net profit attributable to the company was 120 million US dollars, equal to a 23 percent margin and more than twice the prior-year result.

The figures include the company's stated exclusions for non-recurring items in the operating-profit and net-profit presentation. Tower reported diluted earnings of 1.05 US dollars per share on a GAAP basis and adjusted diluted earnings of 1.15 US dollars after excluding stock-based compensation and amortization of acquired intangible assets.

Fourth-quarter target raises the bar

Tower guided for fourth-quarter revenue of 600 million US dollars, with an upward or downward range of 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.

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.

Capacity remains the key test

Infrastructure demand for silicon photonics and silicon germanium is driving high-speed connectivity growth, according to Tower. The company said its Track-1 Japan 300mm expansion is progressing ahead of schedule and that customer contracts are being extended through 2029.

Tower Semiconductor stock traded at 135.50 euros on Lang & Schwarz at 18:12 CET on Monday, November 9, 2026.