A method (100) of forming a transistor includes forming a gate structure (108) over a semiconductor body and forming recesses (112) using an isotropic etch using the gate structure as an etch mask. The isotropic etch forms a recess in the semiconductor body that extends laterally in the semiconductor body toward a channel portion of the semiconductor body underlying the gate structure. The method further includes epitaxially growing silicon (114) comprising stress-inducing species in the recesses. The source and drain regions are then implanted (120) in the semiconductor body on opposing sides of the gate structure.