TSMC posts a sixth straight record quarter as AI chip demand stays ahead of supply

Taiwan Semiconductor Manufacturing Co. on Thursday, Oct. 15, 2026, reported consolidated third-quarter revenue of NT$1,494.24 billion ($46.72 billion) and net income of NT$763.06 billion, a sixth straight record profit quarter, and said leading-edge AI demand continues to support the business into Q4.

The company that actually fabs the AI chips just printed another record quarter and guided Q4 even higher while saying leading-edge demand is still the story. Markets can argue about AI spending; TSMC's node mix and HPC share are the receipts. When the bottleneck says the queue is full, every data-center spreadsheet that assumes silicon shows up on time gets a quieter footnote.

TSMC published third-quarter 2026 results on Oct. 15, 2026, from Hsinchu, Taiwan. Consolidated revenue was NT$1,494.24 billion. Net income was NT$763.06 billion. Diluted earnings per share were NT$29.43, or US$4.60 per American depositary receipt, the U.S.-traded share. NT$ is the New Taiwan dollar, the company's reporting currency. Those figures are TSMC's.

Compared with a year earlier: revenue rose 50.9%; net income and diluted earnings per share both rose 68.7%. Compared with the prior quarter: revenue rose 17.6% and net income rose 8.0%, on a TIFRS consolidated basis. TIFRS is Taiwan's version of the international accounting rules listed companies use. Those figures are TSMC's.

In U.S. dollars, third-quarter revenue was $46.72 billion, up 41.2% from a year earlier and 16.2% from the prior quarter. Gross margin was 66.4%. Operating margin was 58.7%. Net profit margin was 51.1%. Those figures are TSMC's.

Of wafer revenue, 2-nanometer chips were 8%, 3-nanometer 33%, 5-nanometer 28%, and 7-nanometer 10%. Nanometer, here, is the manufacturing step: smaller is more advanced. Advanced nodes, meaning 7-nanometer and more advanced, were 79% of total wafer revenue. Those shares are TSMC's.

CFO Wendell Huang said the third quarter was supported by strong demand for leading-edge process technologies, and that the fourth quarter is expected to be supported by continued strong leading-edge demand, including a steep 2-nanometer ramp. Those lines are his, on TSMC's release.

Fourth-quarter 2026 guidance, as TSMC prints it: revenue US$52.3 billion to $54.3 billion. At an assumed exchange rate of 1 U.S. dollar to 31.8 New Taiwan dollars, gross margin 65% to 67% and operating margin 56.5% to 58.5%. Those lines are TSMC's.

CNBC calls it a sixth straight record net profit. Revenue and net profit beat LSEG SmartEstimates: revenue about NT$1.49 trillion against an NT$1.47 trillion estimate, and net income NT$763.1 billion against NT$746.34 billion. Operating margin of 58.7% was above the company's prior guidance ceiling of 58%. CNBC also says the company upgraded its full-year revenue outlook. Those lines are CNBC's.

CNBC, citing the earnings call and the company: high-performance computing, mostly the servers that train and run AI models, was the largest platform at 68% of revenue, with smartphones at 21%. Automotive was the fastest quarter-on-quarter grower, at 23%. Free cash flow was NT$476.56 billion, against NT$139.38 billion a year earlier. AI demand was described as extremely robust, with agentic AI and open-source models cited. Construction of the second Arizona fab is complete, with equipment being installed and mass production expected in the third quarter of 2027, slightly ahead of the prior schedule. The board approved a NT$7.00 cash dividend for the second quarter. Capital spending for 2026 through 2028 is expected to be significantly higher than the prior three years. CNBC, citing a SemiAnalysis note, says demand remains well above supply capacity after checks on customer financing. Those lines are CNBC's.

The picture is TSMC Chairman and CEO C.C. Wei standing in a dark suit at the Japanese Prime Minister's Official Residence. It is an official Cabinet Secretariat photograph. The frame does not print a calendar date.

In plain terms, TSMC said on Thursday that third-quarter sales were NT$1,494.24 billion, about $46.72 billion, and net income was NT$763.06 billion, another record. High-performance computing was 68% of sales. The company guided fourth-quarter revenue to $52.3 billion to $54.3 billion and said leading-edge demand, including a steep 2-nanometer ramp, is still the story.