TradingKey - On October 8, TSMC (TSM) reported its latest revenue figures. Driven by sustained growth in demand for AI-related chips, the company's third-quarter revenue for 2026 hit a record high, surpassing previous market expectations.

Source: TSMC

TSMC reported that its consolidated revenue for September 2026 was approximately NT$511.857 billion (around $16.034 billion), down 0.6% month-on-month but up sharply by 54.6% year-on-year. Cumulative revenue from January to September this year reached NT$3.899 trillion (around $122.156 billion), representing a year-on-year increase of 41.1%.

Calculated from previously released data for July and August, TSMC's third-quarter revenue was approximately NT$1.494 trillion (around $46.797 billion), up about 50% year-on-year, setting a new record for single-quarter revenue and exceeding analysts' average estimate of NT$1.46 trillion (around $45.77 billion).

TSMC had previously expected third-quarter US dollar revenue to be between $44.6 billion and $45.8 billion, with actual revenue exceeding the upper limit of that guidance. Meanwhile, the company's prior third-quarter gross margin guidance was 65% to 67%, with operating margin expected to be 56% to 58%.

Revenue for the quarter continued to be driven by AI computing demand. As the primary chip manufacturer for major tech companies such as Nvidia (NVDA) and Apple (AAPL), TSMC saw demand for advanced process nodes and AI accelerator-related orders remain robust. According to a Reuters survey, analysts currently expect TSMC's third-quarter net profit to reach approximately NT$740.8 billion (around $23.204 billion), up about 64% year-on-year.

Notably, TSMC will release its full third-quarter financial report and hold an earnings conference on October 15. Investors should focus on AI chip orders, advanced process capacity utilization, gross margin performance, and the company's latest outlook for demand in the fourth quarter and 2027.

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