Tower Semiconductor stock targets $600 million Q4 revenue
Published on 11/10/2026 at 11:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSRecord Results Raise Growth Expectations
- Third-quarter revenue increased 33 percent year over year to a record 526 million US dollars.
- Management expects 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 Tower Semiconductor's growth plans through 2027.
Tower Semiconductor reported record third-quarter results on Monday, November 2, 2026, and set a fourth-quarter revenue target of 600 million US dollars. The company said the outlook would support 2026 revenue of 2 billion US dollars and a 2.4 billion US dollar annualized revenue run rate. The figures come from the company's earnings release.
Revenue and Profit Set Records
Revenue for the quarter ended September 30 reached 526 million US dollars, up 33 percent from 396 million US dollars a year earlier and 14 percent from 460 million US dollars in the second quarter. Gross profit rose to 179 million US dollars from 93 million US dollars, while operating profit reached 127 million US dollars compared with 51 million US dollars in the prior-year quarter.
Net profit attributable to Tower Semiconductor was 120.3 million US dollars, compared with 53.6 million US dollars a year earlier. Diluted earnings per share increased to 1.05 US dollars from 0.47 US dollars. The release also showed 185 million US dollars in operating cash flow, against 191 million US dollars invested in property and equipment during the quarter.
Connectivity Drives the Outlook
The midpoint of the fourth-quarter revenue outlook implies growth of 36 percent from the prior-year quarter and 14 percent from the third quarter. The range is 570 million to 630 million US dollars. Chief Executive Russell Ellwanger said the company expects to avoid the industry's typical first-quarter seasonality in 2027 and sees room for further sequential revenue and margin growth.
Silicon photonics and silicon-germanium products are the main expansion areas cited by management. Tower is targeting a silicon photonics annualized revenue run rate of 1.1 billion US dollars in the fourth quarter, which would be five times the business's 2025 revenue. Capacity investments include a 300mm expansion in Japan, while customer contracts are being extended through 2029.
Execution Becomes the Key Test
The stronger forecast improves visibility into near-term demand, but the investment program also raises the execution burden. Tower must convert customer commitments into qualified capacity and deliveries while controlling capital intensity. The company reported a 92 percent year-over-year increase in third-quarter gross profit, but the expansion plan will require sustained utilization and reliable production ramps.
Tower Semiconductor stock traded at 135.25 euros on Lang & Schwarz at 11:09 CET on Tuesday, November 10, 2026.
Tower Semiconductor at a Glance
- Company: Tower Semiconductor Ltd.
- ISIN: IL0010823792
- WKN: 893169
- Ticker: TSEM
- Latest quote: 135.25 euros on Lang & Schwarz at 11:09 CET on November 10, 2026
- Third-quarter revenue: 526 million US dollars for the period ended September 30, 2026
- Fourth-quarter guidance: 600 million US dollars, plus or minus 5 percent
US semiconductor shares remain a key market reference for investors tracking demand from artificial intelligence infrastructure and data-center connectivity. See the latest TA-35 market reports for the Israeli market environment.
Further company-specific developments will depend on fourth-quarter execution and the next earnings update. More news and analyses on Tower Semiconductor stock.
