TSMC (TSM) β Q3 2025 earnings beat estimates π₯
$TSM π₯
Key financial results: π β Revenue: NT$9,899.2 billion β a 30.3% increase year-over-year and 6.0% quarter-over-quarter. β
β In US dollar terms: $33.1 billion β a 40.8% increase year-over-year and 10.1% quarter-over-quarter, above company guidance ($31.8β33.0 billion).β
β Net income: NT$4,523 billion β a 39.1% increase year-over-year and 13.6% quarter-over-quarter.β
β Earnings per share (EPS): NT$17.44 (or $2.92 per ADR) β a 39% increase year-over-year.β
Profitability: Gross margin: 59.5% - (above guidance of 55.5%β57.5%). β Operating margin: 50.6% - (above guidance of 45.5%β47.5%). β Net profit margin: 45.7%. β
Segmentation by technology (from wafer revenue): 3nm: 23% π 5nm: 37% πΌ 7nm: 14% π
Advanced technologies (7nm and below) account for 74% of total revenue β reflecting the company's technological leadership and strong demand for advanced chips for the AI market.
Segmentation by platform (quarter-over-quarter change): π π° HPC (High-Performance Computing): 57% β no change. π° Smartphones: 30% β up 19%. IoT: 5% β up 20%. π° Automotive: 5% β up 18%. π° Digital consumer electronics: 1% β down 20%. π° Other: 2% β down 8%.
TSMC reported a particularly strong quarter β revenue and profitability above market estimates, thanks to global demand for AI chips and strength in 3nm and 5nm products. π
The improvement in profit margins indicates high production efficiency and a recovery in the company's leading profitability in the industry. β‘οΈ
Shares of $TSM are up 2.3% in after-hours trading πΌ