# TSMC Posts Record Q3 Profit, Guides Q4 to $52.3–54.3 Billion and Lifts 2026 Growth View to About 44%

Times of AI Desk · 2026-10-15 · Industry

[https://timesof.ai/2026/10/tsmc-q3-record-profit-q4-guidance-2026-growth-44pct](https://timesof.ai/2026/10/tsmc-q3-record-profit-q4-guidance-2026-growth-44pct)

> TSMC reported third-quarter net income of NT$763.06 billion, up 68.7%, on revenue of US$46.72 billion on Oct. 15. It guided fourth-quarter revenue to US$52.3–54.3 billion and now expects 2026 growth of about 44% in dollar terms. CEO C.C. Wei said demand is 'extremely robust,' according to an AI-assisted call transcript.

The foundry behind most AI chips is guiding to faster growth on the same day Asian markets sold off over AI-spending doubts. **TSMC** on **Thursday, October 15** reported third-quarter net income of **NT$763.06 billion**, up **68.7%** from a year earlier, and consolidated revenue of **NT$1,494.24 billion**, up **50.9%**, according to its release as carried by TrendForce. In US dollars, revenue was **$46.72 billion**, up 41.2% year over year and 16.2% from the second quarter. TSMC's investor-relations page lists the same $46.72 billion against third-quarter guidance of $44.6–45.8 billion.

## The quarter

Diluted earnings per share were NT$29.43 (US$4.60 per ADR unit), according to the release. CNBC reported that revenue and net income beat LSEG SmartEstimates of NT$1.47 trillion and NT$746.34 billion, and that it was TSMC's sixth straight record-profit quarter.

Gross margin was **66.4%** and operating margin **58.7%**, TSMC's IR page shows, against guidance ranges of 65–67% and 56–58%. Chief financial officer **Wendell Huang** attributed a 1.3-point sequential fall in gross margin mainly to the 2-nanometer ramp, according to the call transcript published by Investing.com.

2-nanometer contributed **8%** of wafer revenue, up from 3% the previous quarter; 3nm was 33%, and 7nm-and-below technologies 79%, according to the release as carried by TrendForce. High-performance computing was **68%** of revenue, CNBC reported.

## Guidance and capex

TSMC guided fourth-quarter revenue to **$52.3–54.3 billion**, gross margin of 65–67% and operating margin of 56.5–58.5%, according to its IR page. CNBC, citing the call, said the midpoint implies about 14% sequential and 58% year-over-year growth.

On the call, Wei said TSMC now expects full-year 2026 revenue growth of about **44%** in US dollars, and Huang reiterated a 2026 capital budget of **$60–64 billion**, according to the transcript. CNBC reported that TSMC expects 2026–2028 capex to be significantly higher than in the previous three years. Huang said the margin dilution from overseas fabs is expected to widen to 3–4 points in later years, the transcript shows.

CNBC reported that the second Arizona fab is built and taking tools, with volume production expected in the third quarter of 2027, slightly ahead of schedule.

## What Wei said about demand

Asked whether demand for AI accelerators could beat TSMC's earlier forecast of mid-to-high-50s percent compound growth from 2024 to 2029, Wei said: "The demand is extremely robust. We did not see any sign of slowdown. Whether it is a high 50 CAGR, it does not matter. It probably will be higher." That is according to Investing.com's transcript. TSMC's investor-relations director noted on the call that the forecast uses a narrow definition, and Wei said CPUs are not included.

Wei also said TSMC is "being prudent" in planning for 2027 because consumer and price-sensitive segments are being challenged by rising component prices, the transcript shows.

On US expansion, Wei said TSMC has sent teams to evaluate Texas and is in discussions with a customer building a fab he named as Terafab. "We are still in discussion," he said, adding that any fab "has to be run by TSMC," according to the transcript. No deal was announced.

The results landed as Seoul's market [fell more than 7% in an AI-chip selloff](https://timesof.ai/2026/10/ai-financing-rout-nasdaq-sox-coreweave-kospi-7pct).

## Limits

- Quotes and call remarks come from Investing.com's transcript, which says it was "generated with the support of AI and reviewed by an editor." They were not checked against TSMC's webcast or official transcript, which TSMC said would be posted within 24 hours.
- TSMC's results page could only partly be read (its guidance table). The other headline figures come from the release as reproduced by TrendForce; CNBC's $46.36 billion revenue figure is CNBC's own currency conversion, so this article uses TSMC's $46.72 billion.
- Beats are measured against LSEG estimates as reported by CNBC. The share-price reaction is not included because the available reports conflict on session and timing.
- Demand commentary is management's own assessment.

## Sources

- [TrendForce: TSMC 3Q26 net profit surges 68.7% to record NT$763B (October 15, 2026)](https://www.trendforce.com/news/2026/10/15/news-tsmc-3q26-net-profit-surges-68-7-to-record-nt763b-eps-hits-nt29-43-2nm-sales-share-climbs-to-8/)
- [TSMC Investor Relations: 2026 Q3 quarterly results](https://investor.tsmc.com/english/quarterly-results/2026/q3)
- [CNBC: TSMC posts record profit for a sixth straight quarter (October 15, 2026)](https://www.cnbc.com/2026/10/15/tsmc-third-quarter-profit-global-ai-.html)
- [Investing.com: Earnings call transcript: TSMC beats Q3 2026 estimates (October 15, 2026)](https://www.investing.com/news/transcripts/earnings-call-transcript-tsmc-beats-q3-2026-estimates-as-stock-slips-93CH-4950695)
- [Times of AI: AI financing rout and KOSPI (October 15, 2026)](https://timesof.ai/2026/10/ai-financing-rout-nasdaq-sox-coreweave-kospi-7pct)