Tower Semiconductor's stock surged 6.08% in pre-market trading following the release of its fourth-quarter 2025 financial results, which showcased record revenue and earnings that exceeded analyst expectations.
The company reported record quarterly revenue of $440 million, representing a 14% year-over-year increase and slightly beating the FactSet consensus estimate of $439.8 million. Adjusted earnings per share came in at $0.78, significantly surpassing the $0.68 estimate and marking a 32.2% increase from the same period last year.
Furthermore, Tower Semiconductor provided optimistic guidance for the first quarter of 2026, projecting revenue of approximately $412 million, which exceeds the FactSet estimate of $408.4 million. The company also announced an additional $270 million investment to expand its Silicon Photonics (SiPho) capacity, citing strong demand for the platform which contributed significantly to the quarter's record profitability.