Taiwan Semiconductor Manufacturing Company (TSM) investor relations material

Executive summary

• 3Q26 revenue was NT$1,494.24B, up 50.9% YoY in NT dollars, and $46.72B, up 41.2% in U.S. dollars; net income rose 68.7% to NT$763.06B.

• Leading-edge demand and robust AI demand supported growth, with demand assessed as well above available supply.

Financial highlights

• Revenue rose 17.6% QoQ in NT dollars and 16.2% in U.S. dollars; wafer shipments reached 4,476 thousand 12-inch-equivalent units, up 3.2% QoQ.

• Gross profit was NT$992.38B and operating income NT$876.45B, up 75.0% YoY; net profit margin was 51.1%.

• 9M26 revenue rose 41.1% YoY to NT$3,898.73B; operating income rose 67.9% to NT$2,302.01B and net income rose 68.8% to NT$2,042.92B.

• Operating expenses were NT$116.43B; non-operating items were NT$34.59B.

Outlook and guidance

• Q4 revenue guidance is $52.3B-$54.3B; gross margin is guided at 65%-67% and operating margin at 56.5%-58.5%.

• Q4 gross margin midpoint is 66%, down 40 bps QoQ, reflecting the N2 ramp and overseas fab dilution, partly offset by productivity and capacity optimization.

• FY2026 revenue growth is expected at ~44% YoY in U.S. dollars; 2026 CapEx guidance remains $60B-$64B.

• CapEx for 2026-2028 is expected to be significantly higher than in the prior three years, with revenue growth expected to outpace CapEx growth.