Taiwan Semiconductor Manufacturing Company Limited Q3 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights (vs. Q2 2026)

  • Revenue: $46.7 billion USD (+16.2% QoQ; above high end of guidance). In NT$ terms, +17.6% QoQ, driven by leading-edge demand.
  • Gross Margin: 66.4% (-1.3 percentage points QoQ), primarily due to initial 2nm ramp dilution.
  • Operating Margin: 58.7% (operating expenses at 7.8% of revenue).
  • EPS: TWD 29.43; ROE: 45.5%.
  • Cash & Marketable Securities: TWD 4 trillion ($126 billion).
  • Q3 CapEx: $13.8 billion USD.
  • Cash Flow: TWD 920 billion from operations; TWD 443 billion CapEx; cash balance rose TWD 488 billion to TWD 3.6 trillion.

Revenue by Technology (Wafer Revenue)

  • 2nm: 8%
  • 3nm: 33%
  • 5nm: 28%
  • 7nm: 10%
  • Advanced technologies (7nm and below): 79%

Revenue by Platform (QoQ Changes)

  • HPC: +22% to 68% of revenue
  • Smartphone: +10% to 21%
  • IoT: +5% to 4%
  • Automotive: +23% to 4%
  • DCE: -12% to 1%

Q4 2026 Guidance (vs. Q3 2026 and Q4 2025)

  • Revenue: $52.3B–$54.3B (+14% QoQ / +58% YoY at midpoint).
  • Gross Margin: 65%–67% (midpoint ~66%, -0.4 pp vs. Q3 midpoint, due to continued 2nm ramp and overseas fab dilution).
  • Operating Margin: 56.5%–58.5%.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Jeff Su: Good afternoon, everyone, and welcome to TSMC's third quarter 2026 earnings conference call. This is Jeff Su, TSMC's Director of Investor Relations and your host for today. TSMC is hosting our earnings conference call via live audio webcast through the company's website at www.tsmc.com, where you can also download the earnings release materials. If you are joining us through the conference call, your dial-in lines are in listen-only mode. The format for today's event will be as follows. First, TSMC's Senior Vice President, third quarter 2026, followed by our guidance for the fourth quarter 2026. Then Mr. Huang and TSMC's Chairman and CEO, Dr. C.C. Wei, will jointly provide the company's key messages. Then we will open the line for the Q&A session. As usual, I would like to remind everybody that today's discussions may contain forward-looking statements that are subject to significant risk and uncertainties, which could cause the actual results to differ materially from those contained in the forward-looking statements. Please refer to the safe harbor notice that appears in our press release. Now, I would like to turn the call over to TSMC CFO, Mr. Wendell Huang, for the summary of operations and the current quarter guidance. Wendell Huang: Thank you, Jeff. Good afternoon, everyone. Thank you for joining us today. My presentation will start with financial highlights for the third quarter of 2026. After that, I will provide the guidance for the fourth quarter of 2026.

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional