Taiwan Semiconductor Manufacturing (NYSE:TSM) Releases Earnings Results, Beats Expectations By $0.46 EPS

Taiwan Semiconductor Manufacturing (NYSE:TSM) issued its quarterly earnings results on Thursday. The semiconductor company reported $4.28 EPS for the quarter, topping analysts’ consensus estimates of $3.82 by $0.46, FiscalAI reports. Taiwan Semiconductor Manufacturing had a return on equity of 36.81% and a net margin of 46.97%.The business had revenue of $39.89 billion for the quarter, compared to analyst estimates of $39.85 billion.

Here are the key takeaways from Taiwan Semiconductor Manufacturing’s conference call:

• TSMC reported Q2 revenue of $40.2 billion at the high end of guidance, with gross margin of 67.7% and strong demand driven by leading-edge process technologies.
• The company raised its full-year 2026 revenue growth outlook to slightly above 40% in U.S. dollar terms, citing exceptionally strong AI-related demand and broad customer support.
• TSMC increased its 2026 capital budget to $60 billion-$64 billion and announced an additional $100 billion investment in Arizona to expand 2nm-and-below logic and advanced packaging capacity.
• Management said the 2nm ramp will pressure margins by roughly 3-4 percentage points in the second half, and Q3 gross margin is expected to ease to about 66% at the midpoint due to this mix shift and overseas fab dilution.
• Executives emphasized that AI demand remains extremely robust, including emerging agentic AI use cases, and said they expect this trend to support strong multi-year growth across CPUs, GPUs, and other leading-edge chips.

Taiwan Semiconductor Manufacturing Price Performance

NYSE TSM opened at $419.43 on Thursday. The company has a quick ratio of 2.31, a current ratio of 2.49 and a debt-to-equity ratio of 0.16. The company has a market cap of $2.18 trillion, a PE ratio of 34.89, a price-to-earnings-growth ratio of 1.05 and a beta of 1.36. Taiwan Semiconductor Manufacturing has a 52 week low of $223.70 and a 52 week high of $479.00. The firm’s 50-day simple moving average is $427.18 and its two-hundred day simple moving average is $377.06.

Taiwan Semiconductor Manufacturing Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 16th will be issued a dividend of $1.1136 per share. This represents a $4.45 annualized dividend and a yield of 1.1%. This is a boost from Taiwan Semiconductor Manufacturing’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Wednesday, September 16th. Taiwan Semiconductor Manufacturing’s payout ratio is currently 24.71%.

Key Taiwan Semiconductor Manufacturing News

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: TSMC posted record Q2 profit, beat revenue and profit estimates, and said AI demand is still driving growth. Reuters: TSMC Q2 profit jumps 77% to record, far surpasses expectations
• Positive Sentiment: The company raised its Q3 revenue guidance to $44.6 billion-$45.8 billion, above consensus, signaling continued momentum.
• Positive Sentiment: TSMC expanded its Arizona plan by another $100 billion, lifting total U.S. investment to $265 billion and strengthening its role in advanced 2nm and AI chip production. Seeking Alpha: Wall Street Breakfast Podcast: TSMC Chips In $100B More
• Neutral Sentiment: Analysts and investors are weighing whether the company’s already-strong results and AI outlook were fully priced in, with some commentary pointing to “exceptionally high” expectations and profit-taking. MarketWatch: TSMC posts record quarter — but expectations are now exceptionally high
• Negative Sentiment: Chip stocks across Asia fell on caution that the AI trade may have become crowded, creating a broader sector sell-off that is weighing on TSM as well. Reuters: TSMC Q2 profit jumps 77% to record, far surpasses expectations

Analyst Ratings Changes

Several brokerages have recently issued reports on TSM. Citigroup reaffirmed a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a research report on Monday, July 6th. Weiss Ratings downgraded shares of Taiwan Semiconductor Manufacturing from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday. DA Davidson restated a “buy” rating and set a $450.00 price target on shares of Taiwan Semiconductor Manufacturing in a research report on Friday, April 17th. Wall Street Zen upgraded shares of Taiwan Semiconductor Manufacturing from a “hold” rating to a “buy” rating in a report on Sunday, March 22nd. Finally, Susquehanna lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $500.00 to $575.00 and gave the stock a “positive” rating in a research report on Monday, June 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $449.38.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other Taiwan Semiconductor Manufacturing news, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average cost of $79.19 per share, for a total transaction of $79,190.00. Following the purchase, the vice president owned 5,000 shares of the company’s stock, valued at $395,950. This represents a 25.00% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Bor-Zen Tien acquired 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The stock was acquired at an average cost of $69.91 per share, with a total value of $139,820.00. Following the completion of the acquisition, the vice president owned 11,051 shares in the company, valued at $772,575.41. This trade represents a 22.10% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 6,857 shares of company stock worth $512,334 over the last quarter. Corporate insiders own 1.11% of the company’s stock.

Institutional Investors Weigh In On Taiwan Semiconductor Manufacturing

Several institutional investors have recently made changes to their positions in the stock. Quattro Advisors LLC bought a new position in shares of Taiwan Semiconductor Manufacturing in the fourth quarter worth $25,000. Resources Management Corp CT ADV bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 2nd quarter valued at $32,000. Riggs Asset Managment Co. Inc. purchased a new stake in Taiwan Semiconductor Manufacturing during the 2nd quarter worth about $41,000. FWL Investment Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 26.5% during the 2nd quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company’s stock worth $57,000 after purchasing an additional 53 shares in the last quarter. Finally, SWAN Capital LLC boosted its stake in Taiwan Semiconductor Manufacturing by 65.7% in the 4th quarter. SWAN Capital LLC now owns 227 shares of the semiconductor company’s stock worth $69,000 after purchasing an additional 90 shares during the period. Hedge funds and other institutional investors own 16.51% of the company’s stock.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.