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Dec 31, 2025
Tower Q4 2025 Earnings Report
Tower Semiconductor reported record revenue and increased profitability in Q4 2025, driven by strong performance across key technology platforms and strategic investments in SiPho capacity.
Key Takeaways
Tower Semiconductor achieved record revenue of $440 million in the fourth quarter of 2025, marking a 14% year-over-year and 11% quarter-over-quarter growth. The company also reported a net profit of $80 million, reflecting $0.71 basic and $0.70 diluted earnings per share, a significant increase from the previous quarter. Strategic investments in SiPho capacity and capabilities are underway to meet increasing demand.
Record quarterly revenue of $440 million, up 14% year-over-year and 11% quarter-over-quarter.
Net profit of $80 million for the quarter, with basic EPS of $0.71 and diluted EPS of $0.70.
Gross profit increased to $118 million and operating profit to $71 million in Q4 2025.
Additional $270 million Cap-Ex investment announced for SiPho capacity and next-generation capabilities, bringing total SiPho/SiGe investments to $920 million.
Forward Guidance
Tower Semiconductor guides for first-quarter 2026 revenue to be $412 million, with a 5% upward or downward range, representing a 15% year-over-year increase. The company is also making significant investments in SiPho capacity, targeting over 5X the Q4 2025 annualized wafer shipment run-rate by 2027, with over 70% of this capacity already reserved or in process of being reserved through 2028.
Positive Outlook
- Projected Q1 2026 revenue of $412 million, indicating 15% year-over-year growth.
- Additional $270 million Cap-Ex investment for SiPho capacity and next-generation capabilities, totaling $920 million in SiPho/SiGe investments.
- Targeted SiPho capacity to be greater than 5X of Q4 2025 annualized wafer shipment run-rate by 2027.
- Over 70% of total SiPho capacity is already reserved or in the process of being reserved through 2028, backed by customer prepayments.
- Continued focus on a value-driven growth strategy and targeting sequential quarterly increases in revenue and profitability during 2026.
Challenges Ahead
- Intel expressed intention not to perform under the 300mm wafer manufacturing agreement, leading to a mediation process.
Historical Earnings Impact
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