Taiwan Semiconductor Manufacturing Company (TSM) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached NT$933.79 billion (US$30.1B), up 17.8% sequentially and 44.4% year-over-year, driven by strong AI and HPC demand and advanced nodes (7nm and below) accounting for 74% of wafer revenue.

• Net income was NT$398.27 billion, up 10.2% sequentially and 60.7% year-over-year; diluted EPS was NT$15.36.

• Gross margin was 58.6%, operating margin 49.6%, and net profit margin 42.7%.

• Shipments totaled 3,718K 12"-equivalent wafers, up 14.1% sequentially and 19.0% year-over-year.

• Growth was led by robust AI and HPC demand, with HPC accounting for 60% of revenue.

Financial highlights

• Q2 revenue up 11.3% sequentially in NT, 17.8% in USD; gross margin down 0.2pp sequentially to 58.6%.

• Operating margin up 1.1pp sequentially to 49.6%; net profit margin at 42.7%.

• EPS was NT$15.36, up from NT$13.94 in 1Q25 and NT$9.56 in 2Q24; ROE reached 34.8%.

• Free cash flow for Q2 was NT$199.85 billion; CapEx was US$9.63 billion (NT$297.22 billion).

• Cash and marketable securities at quarter-end were NT$2,634.43 billion.

Outlook and guidance

• Q3 2025 revenue expected at US$31.8–$33.0B, up 8% sequentially and 38% year-over-year at midpoint.

• Gross margin guidance: 55.5%–57.5%; operating margin: 45.5%–47.5%.

• 2025 CapEx maintained at $38–$42B; full-year revenue expected to grow ~30% in USD, led by AI and HPC.

• Continued strong demand anticipated for leading-edge process technologies.