Tower Posts Record Q3 Revenue of $526M, Guides Q4 to $600M and $2B 2026
TSEM has more than doubled off its 52-week low of $80.63 on elevated volume (2.9× avg).
Summary
Tower reported record Q3 revenue of $526 million (up 33% year over year) and guided Q4 to $600 million, putting 2026 on a $2 billion annual revenue path with SiPho demand driving the acceleration.
Key Events · Earnings and Guidance · TSEM
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Record Q3 Revenue of $526 Million
Revenue rose 33% year over year from $395.7 million, beating the $520.2 million consensus; gross profit nearly doubled to $179 million from $93 million.
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Q4 Guidance of $600 Million
Mid-range guidance implies 36% year-over-year and 14% quarter-over-quarter growth, closing 2026 at a $2 billion annual revenue run rate.
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SiPho Run Rate Targeted at $1.1 Billion
Management targets a $1.1 billion annualized silicon photonics run rate in Q4 2026, described as 5X the 2025 SiPho annual revenue, with customer contracts extended through 2029.
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Capex Nearly Matches Operating Cash Flow
Q3 operating cash flow was $185 million against $191 million of net property and equipment investment, as the Japan 300mm buildout progresses ahead of schedule.
Analysis · TSEM · Manufacturing
Tower's Q3 revenue of $526 million grew 33% year over year and beat the $520.2 million consensus, while gross profit nearly doubled to $179 million and net profit attributable to the company reached $120.3 million, or $1.05 diluted EPS. The bigger news is the outlook: Q4 guidance of $600 million implies 36% year-over-year growth and puts the company at a $2 billion annual revenue run rate, with management targeting a $1.1 billion annualized SiPho run rate in Q4 alone — 5X 2025's SiPho revenue. That is a step-change in the growth curve for a foundry that was generating roughly $400 million a quarter a year ago, and it comes with customer contracts extended through 2029. The offset is capital intensity: $191 million of net capex in the quarter against $185 million of operating cash flow, with the Japan 300mm buildout still ahead.
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At the time of this filing, TSEM was trading at $178.50 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $18.9B. The 52-week trading range was $80.63 to $319.94. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.