Israeli chip company Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE:TSEM) beat analysts’ expectations in its third quarter financial results, which were published today.
Speakling after the results were published Tower CEO Russell Ellwanger said that the company is hiring 150 new employees in Israel for open positions as operators and technicians, noting that this serves as further evidence of their confidence: "We wouldn't be hiring employees if we weren't so confident about expanding production capacity," he says.
In its results, the company reported revenue of $526 million, up 33% from the corresponding quarter of 2025, and above the analysts’ forecast of $522 million. Earnings per share was $1.15, $0.08 above the analysts’ forecast.
Tower sees continued growth in the fourth quarter with revenue guidance of $600 million, 36% up from the corresponding quarter of 2025, while the analysts had expected $580 million. 2026 revenue will exceed $2 billion, 27.7% higher than 2025.
Ellwanger said in the results release, "We are entering the strongest growth phase in our history, according to fourth quarter guidance, closing the year at $2 billion annual revenue and a $2.4 billion annualized revenue run rate. We target to begin 2027 avoiding first quarter's typical industry seasonality, with clear visibility to incremental sequential revenues with accompanying margins' growth."
He added, "With a background of growth and strong increasing demand in each of our core businesses, infrastructure (SiPho and SiGe) demand specifically is driving exceptional growth in our high-speed connectivity business. We target to achieve an annualized $1.1 billion run rate in the fourth quarter of 2026 of SiPho revenue alone, namely 5X of the 2025 SiPho annual revenue. Our on-going capacity investments, including the announced Track-1 Japan 300mm buildout, are progressing ahead of schedule, supported by customer contracts which are being extended through 2029, providing great assurance to achieve our 2028 revenue and margins model, and a well-defined path for accretive margins thereafter. The combination of Tower's technology leadership, expanding capacity and deep alignment with our customers, positions Tower to deliver significant long-term growth and shareholder value."
Tower’s share price closed 11.41% lower on Friday, giving a market cap of $18.9 billion. The stock is 1.51% higher in premarket trading.
Published by Globes, Israel business news - en.globes.co.il - on November 2, 2026.
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