[News] TSMC 3Q26 Net Profit Surges 68.7% to Record NT$763B, EPS Hits NT$29.43; 2nm Sales Share Climbs to 8%
TSMC today announced consolidated revenue of NT$1,494.24 billion, net income of NT$763.06 billion, and diluted earnings per share of NT$29.43 (US$4.60 per ADR unit) for the third quarter ended September 30, 2026.
A net profit exceeding NT$706.56 billion would set a new quarterly record for TSMC, extending its earnings growth streak to 6 consecutive quarters, as noted by Reuters. The milestone follows another record-breaking quarter for revenue, which surged 50% year over year and topped market expectations, as reported last week Reuters adds.
Year-over-year, third quarter revenue increased 50.9%, while net income and diluted EPS both increased 68.7%. Compared to second quarter 2026, third quarter results represented a 17.6% increase in revenue and an 8.0% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, third quarter revenue was $46.72 billion, which increased 41.2% year-over-year and increased 16.2% from the previous quarter.
Gross margin for the quarter was 66.4%, operating margin was 58.7%, and net profit margin was 51.1%.
Notably, TSMC’s 2nm ramp is gathering pace, with its share of wafer revenue rising to 8% from 3% in the previous quarter. 3-nanometer accounted for 33%; 5-nanometer accounted for 28%; and 7-nanometer accounted for 10%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 79% of total wafer revenue.
4Q Revenue Eyes 10–15% Growth
Looking forward, Commercial Times, citing Morgan Stanley, forecasts third-quarter gross and operating margins of 67.5% and 60.8%, respectively, both above the upper ends of TSMC’s guidance ranges and market consensus. Looking ahead, foreign brokerages broadly expect fourth-quarter revenue to rise 10%–15% sequentially, setting the benchmark for the company’s next-quarter outlook, the report suggests.
JPMorgan also sees strong profitability, though with a more measured forecast. Citing Gokul Hariharan, the bank’s head of Taiwan research, Commercial Times reports that third-quarter gross margin could approach the top end of guidance, supported by high 3nm and 5nm capacity utilization and foundry price hikes. These tailwinds are expected to cushion margin pressure from the 2nm ramp and overseas fab expansion.
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(Photo credit: TSMC)
