(addition: Q4 forecast)
Taiwanese semiconductor giant TSMC reports revenue and profit that were higher than analysts’ expectations in the third quarter. Operating profit also beat consensus.
Revenue rose 50.9 percent to 1,494.2 billion Taiwan dollars (989.9). The outcome can be compared with Bloomberg’s analyst consensus of 1,460 billion Taiwan dollars.
Gross margin was 66.4 percent, compared with the expected 66.5 percent.
Operating profit was 876.4 billion Taiwan dollars (500.7), versus expectations of 854.4 billion Taiwan dollars. The operating margin was 58.7 percent, compared with the expected 58.1 percent.
Profit before tax amounted to 911.0 billion Taiwan dollars (525.4).
Net profit was 763.1 billion Taiwan dollars (452.3), which was 3.2 percent better than analyst consensus of 739.5 billion Taiwan dollars.
Earnings per share amounted to 29.43 Taiwan dollars (17.44).
TSMC expects revenue of up to USD 54.3 billion in the fourth quarter, exceeding analysts’ expectations according to Bloomberg.
The forecast implies that annual revenue is expected to increase by around 44 percent in 2026. In the third quarter, profit rose 69 percent and revenue 51 percent, both above expectations.
The strong performance is driven by demand for advanced AI chips from customers such as Nvidia and Apple. TSMC plans record investments of up to USD 64 billion this year and is working to build and equip around 20 factories. The company is also considering an additional US facility in Texas, in addition to its previously announced USD 265 billion investment in Arizona.
TWD billionQ3 2026ConsensusDeviationQ3 2025ChangeRevenue1,494.21,460+2.3%989.9+50.9%Operating profit876.4854.4+2.6%500.7+75.0%Operating margin58.7%58.1%+0.6 pp50.6%+8.1 ppProfit before tax911.0––525.4+73.4%Net profit763.1739.5+3.2%452.3+68.7%Earnings per share, TWD29.43––17.44+68.7%Consensus from Bloomberg
