Taiwan Semiconductor Manufacturing Company (TSM) Q3 2025 earnings summary

Executive summary

• Q3 revenue was NT$989.92B, up 30.3% YoY; in U.S. dollars, revenue reached $33.1B, up 10.1% QoQ.

• Net income attributable to shareholders was NT$452.30B, up 13.6% QoQ and 39.1% YoY; EPS was NT$17.44, up 39.0% YoY.

• Nine-month revenue rose 36% YoY to NT$2,762.96B, with net income up 52% to NT$1,209.98B.

Financial highlights

• Gross margin reached 59.5%, up 0.9 percentage points QoQ; operating margin was 50.6%, up 1.0 point.

• Q3 gross margin exceeded the prior guidance high end by 200 bps, reflecting a more favorable exchange rate and cost improvements.

• Net profit margin was 45.7%; ROE was 37.8%.

• Free cash flow was NT$139.38B; Q3 CapEx was NT$287.45B, or $9.70B.

Outlook and guidance

• Q4 revenue guidance is $32.2B–$33.4B; gross margin is 59%–61% and operating margin 49%–51%.

• 2025 revenue is expected to grow close to mid-30% YoY in U.S. dollars; AI demand remains robust as non-AI markets show mild recovery.

• The mid-40% AI accelerator revenue CAGR outlook through 2029 is tracking somewhat better; an update is expected early next year.