TSMC posts record Q3 profit, guides Q4 revenue up as much as 61%
What happened
TSMC reported a sixth consecutive quarter of record earnings. Q3 net profit rose about 69% year over year to NT$763.1 billion ($23.59 billion), beating the LSEG SmartEstimate of NT$746.3 billion. Revenue rose about 51% to NT$1.49 trillion ($46.72 billion). Gross margin hit 66.4%, operating margin 58.7%, and net margin 51.1%. Management guided Q4 revenue to $52.3–$54.3 billion, implying 55–61% year-over-year growth. The 2nm node contributed 8% of wafer revenue, up from 3% in Q2, and advanced nodes (7nm and below) made up 79% of wafer revenue. TSMC kept 2026 capex guidance at $60–$64 billion.
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Start your free 14-day trialWho’s affected
- TSMC (TSM/2330.TW) — record profit and blockbuster Q4 guide, but shares fell 1.7% overnight in risk-off tape
- Nvidia (NVDA) — TSMC's largest AI customer, down 1.4% overnight, its demand is what TSMC's guide validates
- Apple (AAPL) — major TSMC customer; semiconductor sector (SOXX) — TSMC's guide counters slowdown fears after six straight declines
- SK Hynix and Samsung — fell sharply as KOSPI dropped 7.5% Thursday
- ASML — equipment supplier whose strong outlook aligns with TSMC's capex plans