Taiwan Semiconductor Manufacturing Co. delivered another sharp step up in sales and profit as demand for advanced chips remained strong. The company released the results on October 15, covering the quarter that ended in September.

Revenue and profit accelerate

TSMC’s official quarterly results show revenue of NT$1.494 trillion, equivalent to $46.72 billion. Revenue increased 50.9% in Taiwan dollars and 41.2% in U.S. dollars from the same quarter of 2025.

Net income attributable to shareholders climbed to NT$763.06 billion from NT$452.30 billion a year earlier. Diluted earnings per share rose to NT$29.43, or $4.60 per American depositary receipt. Gross margin expanded 6.9 percentage points year over year to 66.4%, while operating margin increased 8.1 points to 58.7%.

TSMC Q3 revenue chart showing quarterly revenue of $33.10 billion, $40.20 billion and $46.72 billion
TSMC quarterly revenue. Source: TSMC Q3 2026 management report.

AI demand supports a stronger outlook

Management said robust multiyear demand, including the emerging agentic AI market, supported its investment plan. TSMC reiterated full-year capital spending of $60 billion to $64 billion and said spending from 2026 through 2028 should be materially higher than in the prior three years.

The company forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, with gross margin between 65% and 67%. The midpoint would represent another sequential gain from the third quarter. For context, Fusion Market News recently covered Microsoft’s wafer-scale AI inference work and Google’s Deep Review launch, both examples of the workloads pushing demand for advanced computing.

What investors should watch

TSMC’s quarter combines fast revenue growth with unusually strong margins, but the next test is whether supply expansion can keep pace with customer commitments. Management acknowledged tight tool supply while saying it works with equipment vendors well in advance to prepare capacity.

Investors will also watch the mix of advanced nodes, execution of the expanded capital plan and whether the fourth-quarter margin range holds as spending rises. The results add an AI-linked semiconductor counterpoint to the broader earnings picture, including Alcoa’s recent production update.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.