$TSEM · TOWER SEMICONDUCTOR LTD
Tower Semiconductor filed a 6-K reporting Q3 2026 results: record revenue of $526M (+33% YoY), record gross profit of $179M (+92% YoY), GAAP diluted EPS of $1.05, and adjusted diluted EPS of $1.15. The company guided Q4 2026 revenue to $600M (±5%), which would bring full-year 2026 revenue to approximately $2B. CEO Russell Ellwanger highlighted SiPho revenue reaching a $1.1B annualized run rate in Q4, 5x the 2025 level, and noted the Japan 300mm buildout is ahead of schedule with customer contracts extending through 2029.
- Q3 revenue of $526M, up 33% YoY from $396M in Q3 2025
- Q3 gross profit of $179M nearly doubled from $93M a year ago (92% growth)
- Q3 GAAP diluted EPS of $1.05 vs $0.47 in Q3 2025; adjusted diluted EPS of $1.15
- Q4 revenue guidance of $600M (±5%), implying 36% YoY growth and a $2B annual revenue run rate
- SiPho revenue run rate targeted at $1.1B annualized in Q4 2026, 5x the full-year 2025 SiPho revenue
Extended-hours trading shows TSEM at $174.82, up 5.01% vs the regular-session close of $166.48, indicating a positive initial reaction to the record results and strong Q4 guidance. The regular session had fallen 11.41% earlier, so the after-hours bounce partially reverses that decline.
Tower is entering what management calls its strongest growth phase ever, with SiPho revenue scaling 5x year-over-year and a clear path to $2B+ annual revenue — a structural inflection for a specialty foundry.
Tower's SiPho growth trajectory (5x annual revenue run rate) aligns with surging demand for high-speed connectivity in AI infrastructure, positioning it as a key beneficiary alongside other analog/specialty foundries serving the datacenter buildout cycle.
Customer prepayments for SiPho minimum capacity commitments create fulfillment risk if demand outpaces operational capability. The Japan 300mm buildout (Track-1) carries construction, permitting, and METI grant covenant risks that could pressure profitability if delayed.