The Company That Makes Your Chips Sold More Than Expected
TSMC sold NT$1.49 trillion (US$46.71 billion) of chips in the third quarter of 2026, up 50% from a year earlier. That beat market forecasts and the company's own forecast range. Reuters
The company had predicted net revenue of US$44.6 billion to US$45.8 billion, assuming 32.0 New Taiwan dollars per U.S. dollar. Actual revenue of US$46.71 billion was above the top end. Previews had flagged that beat before full results. MarketWatch
TSMC issued its September 2026 Revenue Report on October 8, 2026. September revenue was listed as 511,857, up 54.6%. Revenue so far in 2026 was 3,898,727, up 41.1%. The company says 2026 revenue figures have not been audited.
Profit is still only a forecast. The latest average analyst estimate sees third-quarter net profit up 62%. A day earlier, the average estimate was up 65% to NT$746.3 billion. That would be a sixth record quarter in a row. Reuters Net margin, or cents kept as profit from each dollar of sales, was seen at 50%. Yahoo Finance
TSMC predicted third-quarter gross margin, money left after factory costs, of 65.0% to 67.0%. It predicted operating margin, money left after running the business, of 56.0% to 58.0%. In the second quarter, net revenue was US$40.20 billion, with 67.7% gross margin and 60.3% operating margin.
The second quarter is the base. Net profit was 706.56 billion New Taiwan dollars (about $21.94 billion), up 77%. Analysts had expected 626.82 billion. Before that report TSMC had posted a record month of revenue. Second-quarter earnings per share were forecast at 24.45 New Taiwan dollars. In January TSMC had signaled 2026 revenue growth of 30%, above the 25% analysts expected. Year-to-date revenue is up 41.1%.
TSMC will avoid contact with investors in its Quiet Period from October 5 to October 14, 2026. It will hold its Third Quarter 2026 Earnings Conference on Thursday, October 15, 2026, at 14:00 Taiwan time / 2:00 Eastern Time.
The broader context here is what pushed sales over the top. The dollar target assumed 32.0, and September at 54.6% grew faster than the quarter at 50%. TSMC is like a bakery that bakes bread from other people's recipes. It makes chips designed by others. So the question is how many chips shipped, how busy its best factories were, and how much came from currency change versus units and mix.
Looking to the October 15 update, the checks are gross margin of 65% to 67%, operating margin of 56% to 58%, and net margin near 50%. The second quarter was above both third-quarter guides. If TSMC stays near the top while growing from US$40.20 billion, focus will be on passing on costs, spreading fixed costs over more chips, and tax and other items between operating and net profit.
