[News] TSMC Q3 Revenue Beats Forecasts at Record NT$1.49 Trillion; Net Profit Seen Surging 64%

Ahead of its October 15 earnings call, TSMC reported September revenue of NT$511.86 billion, topping NT$500 billion for the second straight month. The strong finish propelled third-quarter revenue to a record NT$1.49 trillion (US$46.71 billion), up 50% year over year and beating market expectations, according to Reuters.

The figure surpassed the LSEG SmartEstimate of NT$1.46 trillion, based on forecasts from 19 analysts, Reuters notes. With revenue momentum holding firm, attention now shifts to profitability, as LSEG analysts cited by Reuters expect third-quarter net profit to jump 64% year over year to NT$740.8 billion.

The result also topped TSMC’s own third-quarter revenue guidance, issued during its July earnings call. As highlighted by Anue, the foundry giant had projected third-quarter revenue of US$44.6 billion to US$45.8 billion, implying 12% sequential growth and a 37% year-over-year increase at the midpoint. Based on an assumed exchange rate of NT$32 per U.S. dollar, that reportedly translated into revenue of roughly NT$1.427 trillion to NT$1.466 trillion.

On profitability, TSMC had guided for a third-quarter gross margin of 65%–67% and an operating margin of 56%–58%, both below the second quarter’s 67.7% and 60.3%, respectively.

According to Central News Agency, TSMC’s record third-quarter revenue could be attributed to robust AI demand and a pickup in inventory buildup ahead of new smartphone launches.

TSMC’s September Sales Hit Second-Highest Level on Record

Going back to September, TSMC reported monthly revenue of NT$511.86 billion, down just 0.6% month over month but up 54.6% year over year, marking its second-highest monthly total on record, Anue reports. For the first nine months of 2026, cumulative revenue reached approximately NT$3.899 trillion, up 41.1% from a year earlier.

The September figure also beat analyst expectations by a wide margin. According to the Economic Daily News, analysts had projected revenue of NT$444.8 billion to NT$483.2 billion, implying a much steeper monthly decline of 6.1%–13.6%.

Looking ahead to TSMC’s October 15 online earnings call, analysts cited by Central News Agency expect revenue to climb further in the fourth quarter, fueled by demand for NVIDIA’s Vera Rubin platform and TSMC’s 2nm process technology.

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(Photo credit: TSMC)