Tower Semiconductor Posts Record Third-Quarter Revenue of $526 Million
Key Facts
Tower Semiconductor reported record revenue of $526 million for the third quarter on November 2, 2026, up 33% year over year, and said its fourth-quarter guidance is $600 million, plus or minus 5%. The midpoint of the guidance range represents year-over-year growth of 36% and quarterly growth of 14%. The company has thus set its outlook for the next quarter above third-quarter revenue, as its high-speed connectivity business continues to expand. Its chief executive said infrastructure demand, including SiPho and SiGe, is driving growth in this business. But the announcement does not substantiate the percentage increase in the stock attributed to the November 11 session.
Profitability indicators improved alongside revenue growth. Gross profit was $179 million, up 92% from $93 million in the third quarter of 2025. Operating profit, excluding nonrecurring items, was $127 million, compared with $51 million a year earlier, or 2.5 times the comparable level. Net profit, on the same basis excluding nonrecurring items, was $120 million, with a net margin of 23%. Basic earnings per share were $1.06 and diluted earnings per share were $1.05.
Quarterly revenue was $526.161 million in the third quarter, compared with $460.079 million in the second quarter of 2026, an increase of about 14%. In the nine months ended September 30, 2026, the company recorded revenue of $1,399.871 million, compared with $1,125.898 million in the corresponding period of 2025. Net profit attributable to the company for the nine months was $276.057 million, compared with $140.338 million a year earlier. These figures show revenue and profit growth over the period, alongside the annual increase recorded in third-quarter results.
Business growth was accompanied by higher operating cash flow and capital investment. Operating activities generated $185 million in cash in the third quarter, compared with $139 million in the same quarter of 2025. Net investment in property and equipment was $191 million, compared with $103 million a year earlier. The company said in its statement that this investment includes expanding production capacity, including the Track-1 project in Japan to produce 300 mm wafers, and noted that execution is ahead of schedule. It added that customer contracts are being extended through 2029, supporting expansion plans tied to demand for high-speed connectivity.
Tower is targeting an annualized revenue run rate of $1.1 billion from SiPho alone in the fourth quarter of 2026, which it described as five times SiPho's annual revenue in 2025. The chief executive also said the company is targeting full-year 2026 revenue of $2 billion and an annualized revenue run rate of $2.4 billion based on fourth-quarter guidance. The company expects its starting point for 2027 to exceed an annualized rate of $2.4 billion, and its targeted first-quarter revenue starting point to be more than 45% above the level in the first quarter of 2026. These targets are based on the guidance and capacity plans the company announced.
As for the stock, Tower Semiconductor closed at $147.6 on November 10, 2026, compared with a close of $152.29 on November 9. These data do not match a description of a jump in the November 10 session, nor do they substantiate the stock movement percentage attributed to the November 11 session. On its third-quarter earnings call, the company said announced capital investments of $920 million are intended to generate a full return within one year. The company's plan combines increased production capacity with meeting the demand it said is driving growth in its high-speed connectivity business.