TSMC Reports Strong Q4 Results, Issues Robust Q1 and Long-Term Growth Outlook
TSM has more than doubled off its 52-week low of $134.25.
Summary
TSMC reported strong Q4 2025 financial results, exceeding expectations with significant revenue and EPS growth, and provided robust Q1 2026 guidance. The company also projected impressive long-term revenue growth and a substantial capital expenditure plan, signaling continued market dominance.
Key Events · Earnings and Guidance · TSM
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Strong Fourth Quarter 2025 Performance
TSMC reported consolidated revenue of US$33.73 billion for Q4 2025, a 25.5% increase year-over-year, with diluted EPS rising 35.0% year-over-year to NT$19.50 (US$3.14 per ADR unit). Gross margin reached 62.3%.
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Robust First Quarter 2026 Guidance
Management expects Q1 2026 revenue to be between US$34.6 billion and US$35.8 billion, with gross profit margin projected between 63% and 65%, indicating continued strong demand for advanced technologies.
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Optimistic Full-Year and Long-Term Outlook
TSMC anticipates 2026 revenue to increase by close to 30% in US dollar terms and projects a revenue CAGR approaching 25% from 2024 to 2029, highlighting sustained growth momentum.
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Significant Capital Expenditure Plan
The company expects its 2026 capital budget to be between US$52 billion and US$56 billion, reflecting substantial investment in future capacity and technology leadership.
Analysis · TSM · Manufacturing
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) delivered exceptional fourth-quarter 2025 results, surpassing expectations with significant year-over-year growth in both revenue and earnings. The company provided strong guidance for the first quarter of 2026, projecting continued revenue expansion and healthy margins. Most notably, TSMC's long-term outlook is highly optimistic, forecasting close to 30% revenue growth for 2026 and a 25% compound annual growth rate through 2029. This sustained growth, coupled with a substantial 2026 capital budget of up to $56 billion, underscores robust demand for its leading-edge process technologies and solidifies its market leadership. The company's strong performance and outlook reinforce its position as a critical player in the global semiconductor industry, especially as the stock trades near its 52-week high.
At the time of this filing, TSM was trading at $348.83 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.4T. The 52-week trading range was $134.25 to $336.42. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.