Taiwan Semiconductor Manufacturing Company Limited · TSM · FY2026 Q3 · Calendar Q4 2026

TSMC demand remains strong as 2nm ramp weighs on margins

The quarter supports a constructive demand case for TSMC: advanced-node, AI and HPC demand remained strong, while the main counterweight is near-term margin dilution from the 2nm ramp and global expansion. The durability of AI growth and the returns on this capacity buildout remain the key tests.

Reported Before market openNYSETechnology $2230.19B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $4.45
EPS surprise — Reported versus consensus
Reported revenue — Consensus $45.67B
Revenue surprise — Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -2.8% Event window
SPY move +0.1% Same window
Abnormal move -2.9% Stock minus SPY
Volume 1.2× Versus trailing sessions
Subsequent drift 0.0% Up to 20 sessions
TSMSPY benchmark

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Transcript intelligence

What changed

Compared with the prior-quarter analysis, TSMC reported stronger Q3 demand and moved into a Q4 revenue target of $52.3-$54.3 billion while maintaining its broader outlook. The analysis also highlights a possible AI accelerator CAGR above the prior mid-to-high-50% range, an additional 3nm fab in Tainan, and evaluation of a Texas fab.

Guidance delta

Management maintained its outlook while setting a Q4 revenue target of $52.3-$54.3 billion; the analysis notes a modest margin dip as 2nm and overseas-fab costs rise.

Key takeaways

  • Q3 revenue exceeded guidance, supported by demand for advanced nodes and AI-related workloads.
  • Management described AI demand as robust and said accelerator growth could exceed the prior mid-to-high-50% CAGR range.
  • The 2026 capital budget remains $60-$64 billion, funding broad capacity and advanced-packaging expansion.
  • Margin pressure from the 2nm ramp and overseas fabs is expected to be partly offset by productivity gains.

Management priorities

  • Ramp 2nm and continue N2 high-volume manufacturing.
  • Expand 3nm capacity in Taiwan, Arizona and Japan while evaluating additional sites.
  • Scale advanced packaging for larger reticle sizes and support AI, HPC and networking demand.

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Earnings History

Estimate Beat Miss Match
TSM REVENUE earnings history estimate and actual scatter chart 8 reported fiscal quarters and 4 future estimate-only quarters. Q4 '23 actual $626B, None Q1 '24 estimate $20B Q1 '24 actual $593B, beat Q2 '24 estimate $20B Q2 '24 actual $674B, beat Q2 '25 estimate $30B Q2 '25 actual $32B, beat Q3 '25 estimate $32B Q3 '25 actual $32B, beat Q4 '25 estimate $33B Q4 '25 actual $33B, beat Q1 '26 estimate $35B Q1 '26 actual $36B, beat Q2 '26 estimate $40B Q2 '26 actual $39B, miss Q3 '26 estimate $46B Q4 '26 estimate $1.6T Q1 '27 estimate $1.6T Q2 '27 estimate $1.8T

Analyst Consensus ?

ConsensusBuy24 ratings
Bullish1875.0%
Neutral625.0%
Bearish00.0%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$419.08Current
$125Low
$515.33Average
$700High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 15, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Barclays Overweight OverweightMaintainOct 6, 2026
Bernstein Outperform OutperformMaintainAug 11, 2026
Needham Buy BuyMaintainJul 27, 2026
TD Cowen Hold HoldMaintainJul 17, 2026
DA Davidson Buy BuyMaintainJul 17, 2026
Show 20 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $419.08. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Stifel NicolausAnalyst unavailable$515$414 +22.9%Sep 1, 2026
BernsteinMark Li$554$423.66 +32.2%Aug 11, 2026
NeedhamCharles Shi$530$403.41 +26.5%Jul 27, 2026
D.A. DavidsonAnalyst unavailable$500$409.74 +19.3%Jul 17, 2026
BarclaysAnalyst unavailable$650$409.74 +55.1%Jul 17, 2026
See 27 more

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Company context

Snapshot as of publication

Taiwan Semiconductor Manufacturing Company Limited (TSMC), along with its affiliated entities, operates globally in the semiconductor industry, specializing in the manufacturing, packaging, meticulous testing, and worldwide distribution of integrated circuits and other crucial semiconductor components. Its expansive international presence covers key markets such as Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States. The company is renowned for its diverse array of wafer fabrication processes.…

Historical context

All TSM earnings

Technology peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
WIT Wipro Limited FY2027 Q2 · Calendar Q4 2026 — +2.8% Wipro keeps AI strategy central as margins improve
ERIC Telefonaktiebolaget LM Ericsson (publ) FY2026 Q3 · Calendar Q4 2026 — +7.2% Ericsson Q3: Growth and AI progress offset cost and RAN risks
ASML ASML Holding N.V. FY2026 Q3 · Calendar Q4 2026 +20.4% -3.9% ASML: Record Q3, strong AI demand and broader capacity plans

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-10-15T15:11:44.189335+00:00
  2. FN2 earnings calendar · 2026-10-15T01:23:12.167262+00:00
  3. Polygon adjusted daily market bars · 2026-10-15T15:20:45.661455+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-15T15:20:45.658811+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-15. For educational purposes only; not investment advice.