Tower Semiconductor (TSEM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $396 million, up 7% year-over-year and 6% sequentially, with net profit of $54 million and EPS of $0.48 basic/$0.47 diluted.

• Q4 2025 revenue guidance is set at $440 million (+/- 5%), representing a record and 14% year-over-year growth expectation.

• Core technologies—power management, CMOS image sensors, and 65nm RF mobile—showed year-over-year revenue growth, with Silicon Photonics and Silicon Germanium RF platforms driving expansion.

• Cash flow from operating activities in Q3 2025 was $139 million, with net investments in property and equipment at $103 million.

• Announced $300 million additional CapEx for SiPho and SiGe capacity, including Newport Beach Fab expansion and lease extension.

Financial highlights

• Gross profit in Q3 was $93 million (24% margin), up 16% sequentially; operating profit was $51 million, up 27% sequentially.

• Adjusted net profit for Q3 2025 was $62.8 million, with adjusted diluted EPS of $0.55.

• Nine-month 2025 revenue totaled $1.13 billion, with net profit at $140.3 million and adjusted net profit at $170.4 million.

• RF infrastructure revenue grew from $67 million (18% of Q3 2024 revenue) to $107 million (27% of Q3 2025 revenue).

• Silicon Photonics Q3 revenue reached $52 million, up ~70% year-over-year; full-year target above $220 million, with Q4 annualized run rate exceeding $320 million.

Outlook and guidance

• Q4 2025 revenue guided to $440 million (+/- 5%), a new record, with continued acceleration expected and 14% year-over-year growth.

• Silicon Photonics revenue targeted above $220 million for 2025, with capacity expansion to support a $320 million+ annualized run rate by Q4.

• Long-term model targets $2.7 billion annual revenue, $560 million operating profit, and $500 million net profit at full capacity.

• Growth expected across core technologies: Power Management, Image Sensors, and 65nm RF Mobile.

• Record revenue anticipated due to ramping SiGe and SiPho capacity and strong data center demand.