Tower Semiconductor Reports 14% Q4 Revenue Growth, Raises Q1 Guidance to $412M
In Q4 2025 Tower Semiconductor delivered record revenue of $440 million, up 14% year-over-year and net income of $80 million ($0.71 EPS), beating internal targets. The company raised first-quarter 2026 revenue guidance to $412 million ±5% and committed $920 million to SiPho and SiGe capacity expansion.
1. Record Fourth Quarter Performance
In the fourth quarter of 2025, Tower Semiconductor delivered record revenue of $440 million, a 14% increase year-over-year and 11% quarter-over-quarter, with net profit of $80 million ($0.71 EPS), marking a significant improvement from $54 million net profit in Q3 2025.
2. Full-Year 2025 Financial Results
For the full year, revenue reached $1.57 billion, up 9% from 2024, with gross profit of $364 million, operating profit of $194 million and net income of $220 million ($1.97 EPS), while operating cash flow totaled $395 million and capital investments amounted to $437 million.
3. First-Quarter 2026 Guidance Raised
Management issued guidance for Q1 2026 revenue of $412 million with a 5% upside or downside range, targeting 15% year-over-year growth, reflecting confidence in sequential revenue and profit expansion in early 2026.
4. $920 Million CapEx Plan to Expand SiPho and SiGe
Aligned with robust SiPho and SiGe demand, the company announced an additional $270 million on top of its $650 million CapEx plan, totaling $920 million for capacity and capability expansion, aiming for installation and qualification by Q4 2026 with over 70% of SiPho capacity reserved through 2028.