Israel's Tower Semiconductor Reports Q3 Revenue of $526 Million, Up 33% Year-over-Year

en.Wedoany.com Reported - On November 2, Israeli wafer foundry Tower Semiconductor released its third-quarter financial results. For the three months ended September 30, the company reported revenue of $526 million, up 33% year-over-year from $396 million in the same period of 2025, and up 14% quarter-over-quarter from $460 million in the second quarter. Quarterly gross profit reached $179 million, up 92% year-over-year, with a gross margin of approximately 34%, compared with approximately 24% in the prior-year period.

Third-quarter operating profit reached $127 million, an increase of approximately 151% from $50.6 million in the prior-year period. Net profit attributable to the company reached $120 million, compared with $53.65 million in the prior-year period; diluted earnings per share were $1.05, up from $0.47 in the prior-year period. The company generated $185 million in cash flow from operating activities during the period, with net capital expenditures reaching $191 million, an increase of approximately 85% from $103 million in the prior-year period.

Russell Ellwanger, CEO of Tower Semiconductor, noted in the earnings announcement that demand for silicon photonics (SiPho) and silicon germanium (SiGe) businesses is driving growth in high-speed connectivity. The company expects the annualized revenue run rate of its silicon photonics business to reach $1.1 billion in the fourth quarter of 2026, approximately 5 times the full-year silicon photonics revenue in 2025. The expansion plan for 300mm wafer manufacturing capacity in Japan is underway, with relevant customer contracts extended through 2029.

The company expects fourth-quarter 2026 revenue to reach $600 million, with a forecast range of plus or minus 5%, corresponding to 36% year-over-year growth and 14% quarter-over-quarter growth. Based on the midpoint of the fourth-quarter revenue forecast, full-year 2026 revenue is expected to approach $2 billion. The company also targets continued quarter-over-quarter revenue growth in early 2027. The above forecasts do not yet reflect actual results.