TSMC Q3 EPS $4.60 Beats, Margins Hit 66.4% as AI Demand Drives 41% Sales Growth
TSM sits 57% above its 52-week low of $266.82.
Summary
TSMC delivered Q3 EPS of $4.60 per ADR, beating the $4.45 consensus, on revenue of $46.72 billion, up 41.2% year-over-year and above the $45.62 billion estimate. Gross margin came in at 66.4%, operating margin 58.7%, and net margin 51.1%. Advanced nodes (7nm and below) made up 79% of wafer revenue, with 2nm contributing 8%. This follows the Oct 9 revenue pre-announcement of NT$1.49T, but adds full profitability detail and technology mix. The stock traded 1.73% lower after hours at $422.55 despite the beat, suggesting high expectations were already priced in. Looking ahead, TSMC guided Q4 revenue to US$52.3-54.3B, gross margin 65-67%, and operating margin 56.5-58.5%, and expects 2026 revenue growth of about 44% in US dollars. Capex remains the key watch item, with management's $60-64B plan potentially insufficient for AI demand.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — TSMC guided Q4 revenue to US$52.3-54.3B, gross margin 65-67%, operating margin 56.5-58.5%, and expects 2026 revenue growth of about 44% in US dollars.
At the time of this announcement, TSM was trading at $419.81 on NYSE in the Technology sector, with a market capitalization of approximately $2T. The 52-week trading range was $266.82 to $487.47. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.