Tower Semiconductor

TSEM Q4 2025 Earnings

Reported Feb 11, 2026 at 7:04 AM ET · SEC Source

Q4 25 EPS

$0.78

BEAT +13.74%

Est. $0.69

Q4 25 Revenue

$440.2M

MISS 0.16%

Est. $440.9M

vs S&P Since Q4 25

+61.0%

BEATING MARKET

TSEM +66.8% vs S&P +5.8%

Full Year 2025 Results

FY 25 EPS

$2.29

BEAT +5.13%

Est. $2.18

FY 25 Revenue

$1.57B

MISS 0.04%

Est. $1.57B

Market Reaction

Did TSEM Beat Earnings? Q4 2025 Results

Tower Semiconductor closed out fiscal 2025 on a high note, delivering a fourth quarter defined by record revenue and sharply higher profitability, with earnings power coming in well ahead of Wall Street's expectations. Adjusted diluted EPS of $0.78 b… Read more Tower Semiconductor closed out fiscal 2025 on a high note, delivering a fourth quarter defined by record revenue and sharply higher profitability, with earnings power coming in well ahead of Wall Street's expectations. Adjusted diluted EPS of $0.78 beat the consensus estimate of $0.69 by 13.74%, driven by significant margin expansion as gross profit reached $117.61 million and net profit attributable to the company surged to $80.13 million from $53.65 million in Q3. Revenue of $440.21 million, up 13.7% year-over-year, landed just fractionally below the $440.90 million consensus, a rounding error against an otherwise strong quarter. The most consequential development accompanying the results was a $270 million expansion to the company's silicon photonics investment program, bringing total SiPho and SiGe commitments to $920 million, with full qualification targeted by Q4 2026 and full wafer starts in 2027, a buildout that has already drawn new partnerships in quantum computing and AI data center applications. Looking ahead, Tower guided Q1 2026 revenue of $412 million, implying approximately 15% year-over-year growth, with management targeting sequential revenue and profitability gains throughout the year.

Key Takeaways

  • Record quarterly revenue driven by growth across all key technology platforms
  • Exceptional performance and strong incremental margins from market-leading SiPho platforms
  • 14% year-over-year and 11% sequential revenue growth in Q4 2025
  • 23% revenue growth from Q1 to Q4 2025
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TSEM YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

“We ended 2025 having achieved our highest-ever quarterly revenue with a substantial increase in profitability. This was driven by a strong base where each of our key technology platforms provided growth, combined with exceptional performance and strong incremental margins of our market-leading SiPho platforms. We previously announced a $650 million CapEx investment, targeted to be fully qualified in the second half of 2026. Considering our market position, and the extremely high adoption rate of SiPho for 1.6T transceivers, for which Tower is the primary provider, we announce today an additional $270 million investment for the expansion of SiPho capacity and capability. The resultant of the $920 million total investment targets December 2026 SiPho wafer starts capacity greater than five times the actual fourth quarter 2025 SiPho wafer monthly shipments, with customer committed consumption.”

— Russell Ellwanger, Q4 2025 Earnings Press Release