Tower Semiconductor stock gets record Q4 outlook after strong Q3

Published on 11/09/2026 at 11:45 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tower Semiconductor stock follows record third-quarter results and a stronger fourth-quarter revenue outlook. Silicon photonics remains central to expansion.

Record Growth Raises Execution Stakes

Third-quarter revenue rose 33 percent year over year, while net profit more than doubled.
Fourth-quarter guidance points to 2 billion US dollars of revenue for 2026.
Silicon photonics demand and capacity expansion are central to Tower Semiconductor's growth outlook.

Tower Semiconductor, IL0010823792, Illustration mit AI erstellt.

Tower Semiconductor reported record third-quarter results on Monday, November 2, 2026, and set a stronger revenue target for the final quarter. In its official results release, the Israeli chip foundry said revenue reached 526 million US dollars for the three months ended September 30, up 33 percent from 396 million US dollars a year earlier.

Gross profit rose to 179 million US dollars from 93 million US dollars, an increase of 92 percent. Operating profit reached a record 127 million US dollars excluding non-recurring items, compared with 51 million US dollars in the prior-year quarter. Net profit, also excluding non-recurring items, was 120 million US dollars, equal to a 23 percent margin and more than twice the 54 million US dollars reported for the third quarter of 2025.

Guidance Points To A Strong Finish

Tower Semiconductor guided for fourth-quarter revenue of 600 million US dollars, with a range of plus or minus 5 percent. The midpoint represents growth of 36 percent from the prior-year quarter and 14 percent from the third quarter. If achieved, the target would put 2026 revenue at 2 billion US dollars and establish an annualized revenue run rate of 2.4 billion US dollars.

Chief Executive Officer Russell Ellwanger said the company expects to enter 2027 with visibility to sequential revenue growth rather than the industry's typical first-quarter seasonality. Management also targets a silicon photonics revenue run rate of 1.1 billion US dollars in the fourth quarter, five times the 2025 annual figure.

The outlook depends on both demand and execution. Tower said infrastructure demand, particularly in silicon photonics and silicon germanium, is driving high-speed connectivity growth. At the same time, capacity investments, including the Track-1 Japan 300mm expansion, are progressing ahead of schedule, while customer contracts are being extended through 2029.

For investors, the release combines unusually strong operating momentum with a higher delivery burden. Capacity additions must support the projected silicon photonics ramp without undermining margins, while the company's forward-looking statements identify demand fluctuations, manufacturing expansion, equipment installation and the cyclical nature of semiconductors as material risks.

Tower Semiconductor stock traded at 124.25 euros on Lang & Schwarz at 11:41 CET on Monday, November 9, 2026. The real-time quote of Tower Semiconductor stock provides the current market view.