TSMC Q3 2026 Earnings: Profit Up 68.7% and Q4 Guide to $54B

TSMC Q3 2026 earnings turned last week's record revenue headline into a full picture, and it is a strong one. The world's largest contract chipmaker reported on October 15 that third-quarter net income jumped 68.7% from a year earlier, margins widened again, and its guidance points to an even bigger fourth quarter. For anyone tracking the AI hardware buildout, this is the clearest data point of the earnings season so far.

• Net income: NT$763.06 billion, up 68.7% year over year, with EPS of NT$29.43 (US$4.60 per ADR unit).
• Revenue: US$46.72 billion, up 41.2% year over year in dollar terms.
• Margins: 66.4% gross, 58.7% operating and 51.1% net.
• Q4 guidance: US$52.3 billion to $54.3 billion in revenue, with a 65% to 67% gross margin.

What Did TSMC Report for Q3 2026?

We already knew from TSMC's monthly sales that the quarter was a record, as we covered in our TSMC Q3 2026 revenue preview. Today's filing adds the profit side. Revenue came in at NT$1,494.24 billion, up 50.9% year over year in local currency and 17.6% from the second quarter. Net income rose 8% sequentially, and more than half of every revenue dollar ended up as profit, which is a remarkable number for a manufacturing business.

TSMC notes in its SEC filing that the figures have not yet been approved by its board, which is standard timing for its quarterly release.

Which Chip Nodes Drove the Quarter?

The node mix tells you where the demand is. According to TSMC:

• 3-nanometer: 33% of wafer revenue, the single biggest slice.
• 5-nanometer: 28%.
• 2-nanometer: 8%, as the newest process ramps up.
• 7-nanometer: 10%.

Altogether, advanced technologies at 7nm and below made up 79% of wafer revenue. These are the processes used for AI accelerators, data-center CPUs and flagship phone chips, so a mix this heavy at the leading edge is a direct read on AI spending.

What Is TSMC's Q4 2026 Outlook?

TSMC guided fourth-quarter revenue to between $52.3 billion and $54.3 billion, with gross margin of 65% to 67% and operating margin of 56.5% to 58.5%, assuming an exchange rate of 31.8 NT dollars per US dollar. The Register calculates that the midpoint implies roughly 58% growth from a year earlier.

On the earnings call, Chairman and CEO C.C. Wei said demand is still higher than supply and that TSMC is working hard to narrow the gap, The Register reports. He also said the company is being prudent in its planning for 2027 in consumer and price-sensitive segments, which is a sensible note of balance alongside very strong AI demand.

Capex and the A14 Roadmap

TSMC expects 2026 capital spending of $60 billion to $64 billion, and The Register reports that planned spending for 2026 through 2028 is expected to top the previous three years combined. The company plans about 20 new leading-edge fabs and advanced-packaging facilities over the next several years, and its A14 process is on track for risk production in 2027 and volume production in 2028. Wei expects A14 to become a bigger business than 2nm.

TSMC is also checking data-center construction, power supply and related infrastructure before adding capacity, a disciplined approach that should help it match supply to real demand.

Why TSMC Earnings Matter for Investors

TSMC sits upstream of almost every major AI chip, so its results act as a scoreboard for the whole sector. Paired with ASML's record Q3 sales earlier this week, the message from the semiconductor supply chain is consistent: AI demand is still growing faster than the industry can build. New to reading these reports? Our stock trading coverage includes a fresh guide to reading an earnings release line by line.

This article is for information only and is not investment advice.

Sources: TSMC Form 6-K, Third Quarter 2026 earnings release (SEC) — October 15, 2026; The Register, TSMC sends scouts to check whether America's datacenters can deliver — October 15, 2026.