Tower Semiconductor Q3 revenue accelerates 33% to $526m

Tower Semiconductor (NASDAQ:TSEM) reported record third-quarter 2026 revenue of $526.2 million, up 33% year over year, as net profit attributable to the company increased to $120.3 million.

Gross profit nearly doubled to $178.8 million from $93 million, while diluted GAAP earnings per share increased to $1.05 from $0.47 and adjusted diluted EPS reached $1.15.

Operating profit reached $127.1 million, compared with $50.6 million a year earlier, while operating cash flow totalled $185.2 million and investments in property and equipment reached $190.7 million.

Tower forecasts fourth-quarter revenue of approximately $600 million, plus or minus 5%, and management expects full-year 2026 revenue to reach $2 billion.

Following the announcement, Tower Semiconductor shares were up approximately 3.3% at $171.98 in overnight trading.

Management attributed expected growth to demand for silicon photonics and high-speed connectivity, while targeting a $2.4 billion annualized revenue run rate by the end of 2026 and approximately $1.1 billion in annualized fourth-quarter silicon photonics revenue.

Tower manufactures specialty semiconductor technologies, including silicon photonics, silicon-germanium and mixed-signal integrated circuits, serving customers in data centres, telecommunications, automotive and industrial markets.