Taiwan Semiconductor Manufacturing Company (TSM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached NT$989.92 billion (US$33.10 billion), up 10.1% sequentially and 30.3%–40.8% year-over-year, driven by strong demand for advanced process technologies.

• Net income for Q3 2025 was NT$452.30 billion, up 13.6% sequentially and 39.1% year-over-year; EPS was NT$17.44, up 39% year-over-year.

• Gross margin rose to 59.5%, and operating margin to 50.6%, both improving sequentially.

• Q4 2025 revenue is guided between US$32.2B and US$33.4B, a 1% sequential decrease but 22% year-over-year growth at midpoint.

• Full-year 2025 revenue expected to increase by close to mid-30% year-over-year in USD terms.

Financial highlights

• Net profit margin for Q3 2025 was 45.7%, up 3.0 points from Q2.

• Free cash flow for Q3 2025 was NT$139.38 billion.

• Cash and marketable securities at quarter-end were NT$2,470.76 billion (US$90B).

• CapEx for Q3 2025 was NT$287.45 billion (US$9.7B USD).

• Cash from operations was NT$427B; Q2 2024 dividend payout was NT$117B.

Outlook and guidance

• Q4 2025 gross margin expected between 59%-61%, operating margin 49%-51%.

• Gross margin dilution from overseas fabs expected to be 1%-2% for full-year 2025, lower than previous guidance.

• CapEx for 2025 narrowed to US$40B–US$42B, with 70% allocated to advanced process technologies.

• Quarterly cash dividends per share increased to NT$6.00 for Q3 2025.

• AI-related demand remains robust, supporting continued investment and growth.