Summary

Taiwan Semiconductor ADR Beats

Taiwan Semiconductor ADR (TSM) reported Quarter December 2025 earnings of $3.14 per share on revenue of $33.7 billion. The consensus earnings estimate was $2.82 per share on revenue of $32.6 billion. The Earnings Whisper number was $2.92 per share. Revenue grew 25.5% on a year-over-year basis.

The company said it expects first quarter revenue of $34.60 billion to $35.80 billion. The current consensus revenue estimate is $33.58 billion for the quarter ending March 31, 2026.

Taiwan Semiconductor Manufacturing Co Ltd engages in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices, it also manufactures masks.

Earnings Release

TSMC Reports Fourth Quarter EPS of NT$19.50

HSINCHU, Taiwan, R.O.C., Jan. 15, 2026 -- TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$1,046.09 billion, net income of NT$505.74 billion, and diluted earnings per share of NT$19.50 (US$3.14 per ADR unit) for the fourth quarter ended December 31, 2025.

Year-over-year, fourth quarter revenue increased 20.5% while net income and diluted EPS both increased 35.0%. Compared to third quarter 2025, fourth quarter results represented a 5.7% increase in revenue and an 11.8% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, fourth quarter revenue was $33.73 billion, which increased 25.5% year-over-year and increased 1.9% from the previous quarter.

Gross margin for the quarter was 62.3%, operating margin was 54.0%, and net profit margin was 48.3%.

In the fourth quarter, shipments of 3-nanometer accounted for 28% of total wafer revenue; 5-nanometer accounted for 35%; 7-nanometer accounted for 14%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 77% of total wafer revenue.

“Our business in the fourth quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into first quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”

Based on the Company’s current business outlook, management expects the overall performance for first quarter 2026 to be as follows:

Revenue is expected to be between US$34.6 billion and US$35.8 billion;

And, based on the exchange rate assumption of 1 US dollar to 31.6 NT dollars,

Gross profit margin is expected to be between 63% and 65%;
Operating profit margin is expected to be between 54% and 56%.

The management further expects the 2026 capital budget to be between US$52 billion and US$56 billion.

For the full earnings release, please go here.