Taiwan Semiconductor Manufacturing Company reported third-quarter 2026 revenue of $46.72 billion, up 41.2% from a year earlier. Net income beat Wall Street's expectation, and high-performance computing supplied 68% of total revenue.
TSMC reported third-quarter 2026 revenue of $46.72 billion on October 15, a 41.2% jump from the same quarter last year. The October 15 report marked its sixth straight quarter of record profits.
Net income tops expectations
In its home currency, TSMC brought in consolidated revenue of NT$1,494.24 billion, up 50.9% year over year and 17.6% from the previous quarter. Net income reached NT$763.06 billion, up 68.7% year over year and 8.0% from the prior quarter.
Wall Street, however, had expected net income of NT$746.3 billion. Diluted earnings per share came in at NT$29.43, also up 68.7% from a year earlier, which works out to $4.60 per American depositary receipt.
Margins beat guidance
The company's gross margin was 66.4%, with an operating margin of 58.7% and a net margin of 51.1%. All three came in ahead of the company's earlier guidance and analyst estimates.
Advanced nodes and AI computing drive sales
Chips built on process nodes of 7 nanometers and below made up 79% of TSMC's wafer revenue in the quarter. The 3nm node accounted for 33%, 5nm for 28%, 7nm for 10% and 2nm for 8%.
By platform, high-performance computing contributed 68% of total revenue. That share leaves TSMC heavily exposed to the AI spending cycle, while the 2nm trajectory over the coming quarters will show how quickly customers are migrating to the newest technology.
Source: Crypto Briefing
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