Tower Semiconductor reported its third‑quarter 2025 results with revenue of $395.7 million, a 6 % increase from $372.5 million in the prior quarter and a 7 % year‑over‑year gain. Adjusted earnings per share rose to $0.55, beating the consensus estimate of $0.54 by $0.01 and marking a modest but meaningful upside for investors.
The revenue lift was driven by strong demand in the company’s core analog segments—Power Management, Image Sensors, and 65 nm RF Mobile—as well as significant growth in its specialty silicon photonics (SiPho) and silicon germanium (SiGe) businesses. SiPho and SiGe, which serve data‑center and AI applications, contributed a combined $70 million in revenue, up 12 % from the previous quarter, reflecting the continued surge in high‑bandwidth optical transceiver demand.
Margin performance improved across the board. Gross profit climbed to $93 million from $80 million, while net profit increased to $54 million from $47 million. The company’s operating margin expanded to 23.5 % from 21.3 % in Q2, driven by higher‑margin specialty products and disciplined cost management that offset modest increases in raw‑material expenses.
Management guided for Q4 2025 revenue of $440 million, a range that exceeds analyst expectations of $434.35 million and represents a 14 % year‑over‑year and 11 % quarter‑over‑quarter increase. The guidance signals confidence in sustained demand for the company’s high‑growth SiPho and SiGe lines, as well as continued momentum in its core analog portfolio.
CEO Russell Ellwanger highlighted the company’s “best‑ever” performance, noting that “our core technologies—Power Management, Image Sensors, and 65 nm RF Mobile—each demonstrate year‑over‑year revenue growth. Our leading position in SiGe and SiPho for optical transceivers, combined with data‑center demand, gives Tower a clear pathway for unprecedented growth.” He added that the record Q4 guidance reflects the company’s commitment to expanding capacity and capturing the growing AI and data‑center markets.
Analysts had a consensus estimate of $0.54 EPS and $394.97 million in revenue for the quarter. Tower’s results exceeded both benchmarks, underscoring the company’s ability to deliver incremental earnings growth while maintaining a strong balance sheet and investing in future‑growth technologies.
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