Taiwan Semiconductor Manufacturing Company reported third-quarter revenue of NT$1,494.24 billion on October 15, about US$46.72 billion, up 50.9 percent from a year earlier in Taiwan dollars. Net income rose 68.7 percent to NT$763.06 billion.

The numbers

  • Gross margin: 66.4 percent
  • Operating margin: 58.7 percent
  • Diluted earnings per share: NT$29.43, or US$4.60 per ADR unit
  • Revenue in US dollars: up 41.2 percent from a year earlier

What the company expects next

For the fourth quarter, TSMC guided to revenue of US$52.3 billion to US$54.3 billion, a gross margin of 65 to 67 percent and an operating margin of 56.5 to 58.5 percent. The guidance assumes an exchange rate of 31.8 Taiwan dollars to one US dollar.

Why it matters outside the chip industry

TSMC makes advanced processors for much of the AI hardware that cloud providers and software companies depend on. A margin above 66 percent and guidance that keeps climbing say that demand for that hardware has not cooled. For anyone building on AI tools, the price and availability of compute are shaped by what happens at this one company.

A reminder that the guidance is a forecast, not a result. Exchange rates and customer orders can move it.

Source: TSMC third-quarter 2026 results, filed on Form 6-K with the SEC, October 15, 2026.