TSMC posts $46.72 billion Q3 2026 revenue, up 41.2% as AI demand keeps climbing

Taiwan Semiconductor Manufacturing Company reported third-quarter 2026 revenue of $46.72 billion on October 15, a 41.2% jump from the same quarter last year.

The numbers, line by line

In its home currency, TSMC brought in consolidated revenue of NT$1,494.24 billion. That figure is up 50.9% year over year and 17.6% from the previous quarter.

Measured in US dollars, revenue climbed 41.2% year over year and 16.2% quarter over quarter.

Net income reached NT$763.06 billion, up 68.7% year over year and 8.0% from the prior quarter.

Diluted earnings per share came in at NT$29.43, also up 68.7% from a year earlier. For holders of TSMC’s American depositary receipts, that works out to $4.60 per ADR.

Wall Street had expected net income of NT$746.3 billion.

Margins were the real eye-opener:

• Gross margin: 66.4%
• Operating margin: 58.7%
• Net margin: 51.1%

All three came in ahead of the company’s earlier guidance and analyst estimates.

Where the money is coming from

Chips built on process nodes of 7 nanometers and below made up 79% of TSMC’s wafer revenue in the quarter. Here is how the advanced share split out:

• 3nm: 33% of wafer revenue
• 5nm: 28%
• 7nm: 10%
• 2nm: 8%

By platform, high-performance computing contributed 68% of TSMC’s total revenue.

What this means for investors and the chip industry

Sequentially, net income rose 8.0% while NT dollar revenue rose 17.6%. With 2nm at 8% of wafer revenue, its trajectory over the coming quarters will show how quickly customers are migrating to the newest technology.

With HPC at 68% of revenue, TSMC is heavily exposed to the AI spending cycle. The October 15 report marked TSMC’s sixth straight quarter of record profits.