Taiwan Semiconductor Manufacturing Company Limited (TSMC) has announced impressive third-quarter earnings, showcasing substantial growth driven by rising demand for its advanced semiconductor technologies. The company reported consolidated revenue of NT$1,494.24 billion and net income of NT$763.06 billion for the quarter ending September 30, 2026. This performance underscores TSMC's pivotal role in the semiconductor industry, which is witnessing a resurgence in demand for cutting-edge technologies.
In the filing dated October 15, 2026, TSMC revealed that its diluted earnings per share (EPS) reached NT$29.43 (approximately US$4.60 per American Depositary Receipt). Year-over-year, the third-quarter revenue surged by 50.9%, while net income and diluted EPS both increased by 68.7%. Compared to the previous quarter, revenue grew by 17.6%, and net income rose by 8.0%. All financial figures were prepared in accordance with TIFRS on a consolidated basis.
In U.S. dollars, TSMC's third-quarter revenue amounted to $46.72 billion, marking a 41.2% increase year-over-year and a 16.2% increase from the second quarter of 2026. The company's gross margin for the quarter stood at 66.4%, while the operating margin was 58.7%, and the net profit margin reached 51.1%.
Advanced technologies played a crucial role in TSMC's growth, with shipments of 2-nanometer technology accounting for 8% of total wafer revenue, while 3-nanometer technology represented 33%, and 5-nanometer technology made up 28%. Overall, advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 79% of total wafer revenue.
Wendell Huang, Senior Vice President and Chief Financial Officer of TSMC, commented, "Our business in the third quarter was supported by strong demand for our leading-edge process technologies. Moving into the fourth quarter of 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology." This statement reflects TSMC's confidence in its ability to maintain its competitive edge in the rapidly evolving semiconductor market.
Looking ahead, TSMC's management provided guidance for the fourth quarter of 2026, projecting revenue to be between US$52.3 billion and US$54.3 billion. Additionally, they expect gross profit margin to range between 65% and 67%, while operating profit margin is anticipated to be between 56.5% and 58.5%. This outlook indicates TSMC's commitment to sustaining its growth trajectory as it navigates the dynamic landscape of the semiconductor industry.
The filing, accession number 0001046179-26-000726, highlights TSMC's ongoing success and its significant impact on the semiconductor sector. As the demand for advanced technologies continues to rise, TSMC's performance may compel competitors to innovate and enhance their offerings to keep pace with the industry leader.