Tower Semiconductor / company logo; adapted to fit.
Tower Semiconductor reported on Monday, November 2, that third-quarter revenue rose 33% from a year earlier to $526 million, and forecast fourth-quarter revenue of $600 million, plus or minus 5%.
The Israeli chip foundry’s quarterly results put revenue above the $396 million recorded in the same period of 2025. At the midpoint, its fourth-quarter outlook would represent growth of 36% year over year and 14% from the third quarter.
The guidance is a forecast, not revenue already earned. Chief Executive Russell Ellwanger said the company expects the fourth-quarter outlook to bring full-year revenue to about $2 billion, with a $2.4 billion annualized revenue run rate.
Tower reported third-quarter GAAP net profit of $120 million and diluted earnings of $1.05 a share. On its adjusted, non-GAAP measure, diluted earnings were $1.15 a share. The company excludes stock-based compensation and amortization of acquired intangible assets from its adjusted measures.
Gross profit rose to $179 million from $93 million a year earlier. Operating cash flow was $185 million, while net investment in property and equipment totaled $191 million, compared with $139 million and $103 million, respectively, in the year-earlier quarter.
Ellwanger attributed growth to increasing demand across the company’s businesses, singling out silicon photonics and silicon germanium used in high-speed connectivity. He said Tower is targeting a $1.1 billion annualized silicon-photonics revenue run rate in the fourth quarter. That is a management target, not a completed annual sales figure.
Tower said its capacity investments, including a 300mm buildout in Japan, were progressing ahead of schedule. Ellwanger said customer contracts were being extended through 2029. Those comments reflect the company’s outlook and remain subject to demand, construction and operating risks.
The Migdal Haemek-based company operates manufacturing facilities in Israel, the United States, Japan and Italy. Its analog-chip technologies serve markets including infrastructure, automotive, industrial and medical equipment.
JBizNews Desk | Israel
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