Tower Semiconductor stock sets $600 million Q4 revenue target

Tower Semiconductor reported record third-quarter results on Monday, November 2, 2026, and set a higher revenue target for the final quarter. The company's official release said revenue for the period ended September 30 reached 526 million US dollars, up 33 percent from the third quarter of 2025.

Tower Semiconductor stock traded at 140,75 euros on Lang & Schwarz at 11:34 CET on Wednesday, November 11, 2026. The quote was 6,43 percent above the previous Lang & Schwarz reference of 132,25 euros, but no compatible Xetra closing basis was verified for the comparison.

Record Quarter Expands Revenue Outlook

Gross profit rose to 179 million US dollars from 93 million US dollars a year earlier. 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 margin, versus 54 million US dollars and a 14 percent margin a year earlier. Diluted earnings amounted to 1.05 US dollars per share, while operating cash flow reached 185 million US dollars and net investment in property and equipment totaled 191 million US dollars.

Fourth-Quarter Target Raises Execution Stakes

For the fourth quarter, management guided to 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. If achieved, the target would support Tower's goal of reaching 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. He also pointed to infrastructure demand in silicon photonics and silicon germanium as drivers of high-speed connectivity growth.

Capacity Must Match Demand

Management targets an annualized silicon photonics revenue run rate of 1.1 billion US dollars in the fourth quarter, five times the 2025 level. Ongoing capacity investments, including the Track-1 Japan 300mm buildout, are progressing ahead of schedule according to the company, with customer contracts extended through 2029.

For investors, the results strengthen the growth case but also raise the importance of manufacturing execution. Tower must convert customer demand into shipments while maintaining margins as capacity expands. The next material checkpoint is the fourth-quarter report and the accompanying update on utilization, silicon photonics demand and the Japan expansion.

The broader TA-35 market provides the main Israeli equity-market context for the stock.

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