Taiwan Semiconductor Manufacturing Company reported third-quarter 2026 revenue of $46.72 billion on October 15, a 41.2% jump from the same quarter last year.
The numbers, line by line
In its home currency, TSMC brought in consolidated revenue of NT$1,494.24 billion. That figure is up 50.9% year over year and 17.6% from the previous quarter.
Measured in US dollars, revenue climbed 41.2% year over year and 16.2% quarter over quarter.
Net income reached NT$763.06 billion, up 68.7% year over year and 8.0% from the prior quarter.
Diluted earnings per share came in at NT$29.43, also up 68.7% from a year earlier. For holders of TSMC’s American depositary receipts, that works out to $4.60 per ADR.
Wall Street had expected net income of NT$746.3 billion.
Margins were the real eye-opener:
- Gross margin: 66.4%
- Operating margin: 58.7%
- Net margin: 51.1%
All three came in ahead of the company’s earlier guidance and analyst estimates.
Where the money is coming from
Chips built on process nodes of 7 nanometers and below made up 79% of TSMC’s wafer revenue in the quarter. Here is how the advanced share split out:
- 3nm: 33% of wafer revenue
- 5nm: 28%
- 7nm: 10%
- 2nm: 8%
By platform, high-performance computing contributed 68% of TSMC’s total revenue.
What this means for investors and the chip industry
Sequentially, net income rose 8.0% while NT dollar revenue rose 17.6%. With 2nm at 8% of wafer revenue, its trajectory over the coming quarters will show how quickly customers are migrating to the newest technology.
With HPC at 68% of revenue, TSMC is heavily exposed to the AI spending cycle. The October 15 report marked TSMC’s sixth straight quarter of record profits.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.