TSMC Q3 2025 earnings beat estimates

TSMC (TSM) — Q3 2025 earnings beat estimates 🔥

$TSM 🖥

Key financial results: 📊 ➖ Revenue: NT$9,899.2 billion — a 30.3% increase year-over-year and 6.0% quarter-over-quarter. ✅

➖ In US dollar terms: $33.1 billion — a 40.8% increase year-over-year and 10.1% quarter-over-quarter, above company guidance ($31.8–33.0 billion).✅

➖ Net income: NT$4,523 billion — a 39.1% increase year-over-year and 13.6% quarter-over-quarter.✅

➖ Earnings per share (EPS): NT$17.44 (or $2.92 per ADR) — a 39% increase year-over-year.✅

Profitability: Gross margin: 59.5% - (above guidance of 55.5%–57.5%). ✅ Operating margin: 50.6% - (above guidance of 45.5%–47.5%). ✅ Net profit margin: 45.7%. ✅

Segmentation by technology (from wafer revenue): 3nm: 23% 📈 5nm: 37% 🔼 7nm: 14% 📈

Advanced technologies (7nm and below) account for 74% of total revenue — reflecting the company's technological leadership and strong demand for advanced chips for the AI market.

Segmentation by platform (quarter-over-quarter change): 📊 🟰 HPC (High-Performance Computing): 57% — no change. 🟰 Smartphones: 30% — up 19%. IoT: 5% — up 20%. 🟰 Automotive: 5% — up 18%. 🟰 Digital consumer electronics: 1% — down 20%. 🟰 Other: 2% — down 8%.

TSMC reported a particularly strong quarter — revenue and profitability above market estimates, thanks to global demand for AI chips and strength in 3nm and 5nm products. 👑

The improvement in profit margins indicates high production efficiency and a recovery in the company's leading profitability in the industry. ⚡️

Shares of $TSM are up 2.3% in after-hours trading 🔼