TSMC forecasts Q4 revenue jump of up to 61% after record Q3 profit

Taiwan Semiconductor Manufacturing Company just posted another record quarter. Then it told investors the next one should be even bigger. TSMC expects fourth-quarter revenue to climb by as much as 61% from a year earlier. That guidance follows a third quarter in which net income hit NT$763.06 billion ($23.59 billion), up 68.7% year-over-year. The numbers behind the record TSMC reported third-quarter revenue of NT$1,494.24 billion ($46.72 billion) on October 15, 2026. That figure was up 50.9% from the same period last year and 17.6% higher than the previous quarter. It also marked the sixth straight quarter of record earnings. TSMC has now strung together 11 consecutive quarters of year-over-year profit growth. Diluted earnings per share came in at NT$29.43, or $4.60 per ADR. Margins were the real eye-opener: Gross margin: 66.4% Operating margin: 58.7% Net margin: 51.1% Looking ahead, management guided fourth-quarter revenue to a range of $52.3 billion to $54.3 billion. The comparable figure for Q4 2025 was $33.73 billion. That gap implies year-over-year growth of 55% to 61%. The 2nm story and the AI tailwind In the third quarter, 2nm contributed 8% of TSMC’s wafer revenue. In the s...