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Business · Corporate earnings · published 2026-10-12 · via Tikr

TSMC Expected to Post Record Q3 Profit as Margin Pressure Builds

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TSMC is forecast to report a sixth consecutive record quarterly profit on October 15, with net income up about 65% year over year. Revenue already reached a record NT$1.49 trillion, but consensus implies net margin will fall to roughly 50% from the prior quarter's peak. The expected margin decline reflects one-time gains in Q2 and costs tied to the 2nm ramp, while capital spending remains a major swing factor.

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EXPANDED:

TSMC’s October 15 report is expected to show a sixth consecutive record quarterly profit. The LSEG SmartEstimate, based on 16 analysts, points to net income of about NT$746.3 billion, or US$23.4 billion, up roughly 65% from a year earlier. Third-quarter revenue already came in at a record NT$1.49 trillion, exceeding the company’s own guidance range.

The implied net margin near 50% would be below the prior quarter’s peak. Second-quarter results included NT$63.20 billion of gains from Vanguard International Semiconductor shares after an 8.1% stake sale. TSMC also said its 2nm ramp would dilute second-half gross margin by 3 to 4 percentage points, while 2026 capex guidance rose to $60 billion–$64 billion.

Count words? First para: TSMC’s(1) October(2) 15(3) report(4) is(5) expected(6) to(7) show(8) a(9) sixth(10) consecutive(11) record(12) quarterly(13) profit(14). The(15) LSEG(16) SmartEstimate(17), based(18) on(19) 16(20) analysts(21), points(22) to(23) net(24) income(25) of(26) about(27) NT$746.3(28) billion(29), or(30) US$23.4(31) billion(32), up(33) roughly(34) 65%(35) from(36) a(37) year(38) earlier(39). Third-quarter(40) revenue(41) already(42) came(43) in(44) at(45) a(46) record(47) NT$1.49(48) trillion(49), exceeding(50) the(51) company’s(52) own(53) guidance(54) range(55). Good 55.

Second: The(1) implied(2) net(3) margin(4) near(5) 50%(6) would(7) be(8) below(9) the(10) prior(11) quarter’s(12) peak(13). Second-quarter(14) results(15) included(16) NT$63.20(1

Expanded detail and Context are AI-generated analysis; the linked article remains the authoritative source.
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This summary is Al-enhanced to contain extended analysis and broader social context. The original is {NAME); the linked article is the authoritative source. Original headline: “TSMC’s Q3 Earnings Preview: 65% Profit Growth, But Net Margin Seen Slipping to 50%.” Browse more stories.