Tower Semiconductor stock faces capacity test after record Q3
Published on 11/12/2026 at 11:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSRecord Growth Raises Execution Stakes
- Third-quarter revenue rose 33 percent year over year to 526 million US dollars.
- Fourth-quarter guidance points to 600 million US dollars of revenue and a 2 billion US dollar full-year target.
- Capacity expansion and silicon photonics demand are central to the growth outlook.
Tower Semiconductor reported record third-quarter results on November 2, 2026, and set a 600 million US dollar revenue target for the final quarter. The figures and outlook come from the company's investor-relations release.
Tower Semiconductor stock traded at 142.25 euros on Lang & Schwarz at 11:24 CET on Thursday, November 12, 2026.
Record Quarter Resets The Outlook
Revenue for the three months ended September 30 reached 526.161 million US dollars, up from 395.667 million US dollars a year earlier. The company described the result as record revenue and said growth reached 33 percent year over year.
Gross profit increased to 178.759 million US dollars from 93.045 million US dollars in the prior-year quarter. Operating profit reached 127.135 million US dollars, compared with 50.580 million US dollars a year earlier. Net profit attributable to Tower Semiconductor was 120.256 million US dollars, or 1.05 US dollars in diluted GAAP earnings per share, versus 53.645 million US dollars and 0.47 US dollars in the prior-year period.
Tower also reported adjusted net profit attributable to the company of 131.298 million US dollars and adjusted diluted earnings of 1.15 US dollars per share. The adjusted figures exclude stock-based compensation and amortization of acquired intangible assets, so they are not substitutes for the GAAP results.
Fourth-Quarter Guidance Raises The Bar
Management expects fourth-quarter revenue of 600 million US dollars, with a range of plus or minus 5 percent. The midpoint represents 36 percent year-over-year growth and 14 percent sequential growth, according to the company. Tower said the outlook supports a 2026 annual revenue target of 2 billion US dollars and a year-end annualized revenue run rate of 2.4 billion US dollars.
Chief Executive Officer Russell Ellwanger said Tower aims to enter 2027 while avoiding the semiconductor industry's typical first-quarter seasonality. He cited visibility to additional sequential revenue and margin growth, but the statement remains forward-looking and depends on customer demand and operating execution.
Capacity Becomes The Next Test
Silicon photonics is a major part of the expansion plan. Tower targets a 1.1 billion US dollar annualized silicon photonics revenue run rate in the fourth quarter, which it described as five times the 2025 silicon photonics revenue. The company also said its capacity investments, including the Track-1 Japan 300mm buildout, are progressing ahead of schedule.
Customer contracts are being extended through 2029, according to management. For investors, the central issue is whether additional fab capacity, equipment installation and customer demand can convert the strong order visibility into sustained revenue and margin growth. Tower cautioned that utilization, end-market conditions, technology trends and execution can affect future results.
Tower Semiconductor Ltd.
- ISIN: IL0010823792
- Ticker: TSEM
- Listings: Nasdaq and TASE
- Lang & Schwarz price: 142.25 euros at 11:24 CET on November 12, 2026
- Third-quarter revenue: 526.161 million US dollars
- Fourth-quarter revenue guidance: 600 million US dollars, plus or minus 5 percent
Broader sentiment in the S&P 500 remains relevant for high-growth semiconductor shares as investors weigh demand visibility against capacity and valuation risks.
