Taiwan Semiconductor Manufacturing Company (TSMC) reported record third-quarter 2026 results on October 15, but its U.S.-listed shares fell about 3%, or $15.12, as investors sold the news despite broad beats.
Net profit surged 68.7% year over year to NT$763.1 billion, above the LSEG SmartEstimate of NT$746.34 billion. Revenue rose 41.2% to NT$1.49 trillion, or approximately $46.4 billion to $46.7 billion, compared with a forecast of NT$1.47 trillion. This was the sixth consecutive quarter of record net profit. Operating margin reached 58.7%, above the top of guidance of 58 percent, while gross margin came in at 66.4%. Diluted earnings per share rose to $0.92, and free cash flow jumped to NT$476.56 billion from NT$139.38 billion a year earlier.
By technology, 3-nanometer chips accounted for 33% of wafer revenue, 5-nanometer for 28%, 7-nanometer for 10%, and 2-nanometer for 8%; advanced nodes of 7nm and below comprised 79% of wafer revenue. High-performance computing led platform revenue with 68% of the total, followed by smartphones at 21%, while automotive revenue grew 23% sequentially. The board also approved a NT$7.00 cash dividend for the second quarter.
TSMC reportedly raised its 2026 growth outlook and is evaluating a possible Texas investment beyond its previously announced $265 billion Arizona expansion plans, although no formal announcement has been made.
