TSMC posts sixth straight record profit; CEO sounds caution on 2027

Taiwan Semiconductor Manufacturing Co. reported third-quarter 2026 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), according to its Oct. 15 press release. CEO C.C. Wei said the company is being “prudent” in its 2027 planning, according to Reuters coverage of the earnings call.

The quarter

Year over year, revenue increased 50.9% while net income and diluted EPS both increased 68.7%. Compared with the second quarter of 2026, revenue rose 17.6% and net income rose 8.0%, TSMC said. In U.S. dollars, third-quarter revenue was $46.72 billion, up 41.2% year over year and 16.2% from the prior quarter.

Gross margin was 66.4%, operating margin 58.7% and net profit margin 51.1%. Shipments of 2-nanometer process technology accounted for 8% of total wafer revenue; 3-nanometer 33%; 5-nanometer 28%; and 7-nanometer 10%. Advanced technologies, defined as 7-nanometer and more advanced, accounted for 79% of total wafer revenue.

CNBC and Reuters reported a sixth consecutive record quarterly profit, an 11th consecutive quarter of profit growth, and a beat of a LSEG SmartEstimate of about NT$746.3 billion.

Guidance

For the fourth quarter of 2026, management expects revenue between US$52.3 billion and US$54.3 billion; gross profit margin between 65% and 67%; and operating profit margin between 56.5% and 58.5%, based on an exchange-rate assumption of 1 U.S. dollar to 31.8 NT dollars. Secondary coverage said full-year 2026 revenue growth is expected at about 44% in U.S. dollar terms and that 2026 capex was maintained at $60 billion to $64 billion.

CFO Wendell Huang said third-quarter business was supported by strong demand for leading-edge process technologies and that the fourth quarter should see continued strong demand, including a steep ramp of 2-nanometer technology.

Wei on 2027

On the earnings call, Wei said consumer and price-sensitive end markets are challenged by rising component prices and macro uncertainty, and that “we are being prudent in our business planning going into 2027,” according to Reuters. He also said AI-related demand remains “extremely robust,” with no sign of a slowdown.

U.S. fabs

CNBC and Reuters reported that construction of Arizona Fab 2 is complete, with mass production targeted for the third quarter of 2027, and that a Texas expansion is under evaluation.

What’s next / what’s unknown

TSMC’s press release did not include a numeric 2027 revenue range. A full earnings-call transcript was not reviewed; Wei’s 2027 quotes rely on Reuters and related coverage.