Revenue growth accelerated to 35.1% in 2026Q1, while gross margins reached a peak of 66.2% due to the maturation of advanced 3nm and 5nm nodes.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 4.11T | 3.85T | 2.89T | 2.16T | 2.26T | 1.59T | 1.34T | 1.07T | 1.03T | 977.44B | 947.91B | 843.51B | 762.84B | 597B | 506.72B | 427.01B | 419.54B | 295.74B | 333.16B | 322.66B | 317.35B | 267.36B | 257.62B | 202.65B | 162.57B | 130.21B | 166.2B | 76.31B | 50.34B | 44.05B |
| Revenue Growth % | 30.97% | 32.97% | 33.89% | -4.51% | 42.61% | 18.53% | 25.17% | 3.74% | 5.52% | 3.12% | 12.38% | 10.58% | 27.78% | 17.82% | 18.67% | 1.78% | 41.86% | -11.23% | 3.25% | 1.68% | 18.69% | 3.78% | 27.13% | 24.65% | 24.86% | -21.66% | 117.78% | 51.6% | 14.27% | - |
| Cost of Goods Sold | 1.57T | 1.54T | 1.27T | 986.63B | 915.54B | 767.88B | 628.12B | 577.28B | 533.49B | 482.62B | 473.08B | 433.12B | 385.11B | 315.64B | 262.59B | 232.94B | 212.48B | 166.41B | 191.41B | 180.29B | 161.59B | 148.81B | 141.62B | 127.91B | 110.19B | 99.82B | 89.68B | 46.24B | 31.03B | 22.91B |
| COGS % of Revenue | - | 40.11% | 43.88% | 45.64% | 40.44% | 48.37% | 46.9% | 53.95% | 51.73% | 49.38% | 49.91% | 51.35% | 50.48% | 52.87% | 51.82% | 54.55% | 50.65% | 56.27% | 57.45% | 55.88% | 50.92% | 55.66% | 54.97% | 63.12% | 67.78% | 76.66% | 53.96% | 60.6% | 61.64% | 52% |
| Gross Profit | 2.55T | 2.3T | 1.62T | 1.18T | 1.35T | 819.54B | 711.13B | 492.7B | 497.87B | 494.83B | 474.83B | 410.39B | 377.72B | 281.36B | 244.13B | 194.07B | 207.05B | 129.33B | 141.75B | 142.38B | 155.76B | 118.56B | 116.01B | 74.74B | 52.38B | 30.38B | 76.52B | 30.07B | 19.31B | 21.15B |
| Gross Margin % | 61.87% | 59.89% | 56.12% | 54.36% | 59.56% | 51.63% | 53.1% | 46.05% | 48.27% | 50.62% | 50.09% | 48.65% | 49.52% | 47.13% | 48.18% | 45.45% | 49.35% | 43.73% | 42.55% | 44.13% | 49.08% | 44.34% | 45.03% | 36.88% | 32.22% | 23.34% | 46.04% | 39.4% | 38.36% | 48% |
| Gross Profit Growth % | - | 41.9% | 38.23% | -12.85% | 64.53% | 15.24% | 44.33% | -1.04% | 0.62% | 4.21% | 15.7% | 8.65% | 34.25% | 15.25% | 25.79% | -6.27% | 60.1% | -8.76% | -0.44% | -8.59% | 31.38% | 2.2% | 55.22% | 42.67% | 72.4% | -60.29% | 154.45% | 55.72% | -8.68% | - |
| Operating Expenses | 354.83B | 349.23B | 302.3B | 253.65B | 227.08B | 169.56B | 144.35B | 120B | 114.25B | 109.27B | 96.87B | 90.35B | 81.85B | 71.29B | 62.97B | 52.51B | 47.88B | 37.37B | 37.31B | 30.65B | 28.51B | 27.32B | 27.39B | 23.53B | 20.73B | 22.15B | 15.22B | 7.8B | 5.53B | 6.17B |
| OpEx % of Revenue | - | 9.07% | 10.44% | 11.73% | 10.03% | 10.68% | 10.78% | 11.22% | 11.08% | 11.18% | 10.22% | 10.71% | 10.73% | 11.94% | 12.43% | 12.3% | 11.41% | 12.63% | 11.2% | 9.5% | 8.98% | 10.22% | 10.63% | 11.61% | 12.75% | 17.01% | 9.16% | 10.22% | 10.98% | 14.02% |
| Selling, General & Admin | 97.05B | 100.25B | 96.89B | 71.46B | 63.45B | 44.49B | 35.57B | 28.09B | 26.25B | 27.17B | 25.7B | 22.92B | 24.02B | 23.39B | 22.13B | 18.68B | 18.17B | 15.77B | 15.83B | 12.68B | 12.48B | 13.26B | 14.83B | 10.87B | 9.01B | 10.87B | 10.09B | 4.71B | 2.29B | 3.66B |
| SG&A % of Revenue | - | 2.6% | 3.35% | 3.31% | 2.8% | 2.8% | 2.66% | 2.62% | 2.55% | 2.78% | 2.71% | 2.72% | 3.15% | 3.92% | 4.37% | 4.38% | 4.33% | 5.33% | 4.75% | 3.93% | 3.93% | 4.96% | 5.76% | 5.36% | 5.54% | 8.34% | 6.07% | 6.17% | 4.54% | 8.31% |
| Research & Development | 258.25B | 248.98B | 204.18B | 182.37B | 163.26B | 124.73B | 109.49B | 91.42B | 85.9B | 80.73B | 71.21B | 65.54B | 56.83B | 47.95B | 40.39B | 33.83B | 29.71B | 21.59B | 21.48B | 17.93B | 16.06B | 14.06B | 12.55B | 12.7B | 11.76B | 11.28B | 5.13B | 3.09B | 3.24B | 2.51B |
| R&D % of Revenue | - | 6.47% | 7.05% | 8.44% | 7.21% | 7.86% | 8.18% | 8.54% | 8.33% | 8.26% | 7.51% | 7.77% | 7.45% | 8.03% | 7.97% | 7.92% | 7.08% | 7.3% | 6.45% | 5.56% | 5.06% | 5.26% | 4.87% | 6.27% | 7.23% | 8.66% | 3.09% | 4.05% | 6.44% | 5.7% |
| Other Operating Expenses | 0 | -1K | 1.23B | -189M | 368.4M | 333.4M | -710M | 496.3M | 2.1B | 1.37B | -29.8M | 1.88B | 1B | -47.1M | 449.4M | 0 | 0 | 0 | 0 | 32.43M | -32.59M | 33K | 0 | -33.96M | -34.78M | -34K | 0 | -1K | 0 | 0 |
| Operating Income | 2.19T | 1.96T | 1.32T | 921.47B | 1.12T | 649.98B | 566.78B | 372.7B | 383.62B | 385.56B | 377.96B | 320.05B | 295.87B | 210.07B | 181.16B | 141.56B | 159.18B | 91.96B | 104.44B | 110.51B | 127.24B | 91.24B | 88.62B | 51.21B | 31.65B | 8.24B | 61.29B | 22.27B | 13.78B | 14.97B |
| Operating Margin % | 53.25% | 50.82% | 45.68% | 42.63% | 49.53% | 40.95% | 42.32% | 34.83% | 37.2% | 39.45% | 39.87% | 37.94% | 38.79% | 35.19% | 35.75% | 33.15% | 37.94% | 31.1% | 31.35% | 34.25% | 40.1% | 34.13% | 34.4% | 25.27% | 19.47% | 6.33% | 36.88% | 29.19% | 27.38% | 33.98% |
| Operating Income Growth % | - | 47.93% | 43.47% | -17.82% | 72.51% | 14.68% | 52.07% | -2.85% | -0.5% | 2.01% | 18.09% | 8.17% | 40.84% | 15.96% | 27.98% | -11.07% | 73.09% | -11.94% | -5.5% | -13.15% | 39.46% | 2.96% | 73.07% | 61.78% | 284.19% | -86.56% | 175.2% | 61.6% | -7.94% | - |
| EBITDA | 3.05T | 2.65T | 1.98T | 1.45T | 1.56T | 1.07T | 898.51B | 659.59B | 676.17B | 645.7B | 601.79B | 542.55B | 496.12B | 366.25B | 312.51B | 249.24B | 246.99B | 172.78B | 185.95B | 190.39B | 200.95B | 167.24B | 158.57B | 120.24B | 96.77B | 57.11B | 102.74B | 47.47B | 29.05B | 24.76B |
| EBITDA Margin % | 74.03% | 68.88% | 68.58% | 67.24% | 68.84% | 67.55% | 67.09% | 61.64% | 65.56% | 66.06% | 63.49% | 64.32% | 65.04% | 61.35% | 61.67% | 58.37% | 58.87% | 58.42% | 55.81% | 59.01% | 63.32% | 62.55% | 61.55% | 59.33% | 59.52% | 43.86% | 61.82% | 62.21% | 57.72% | 56.21% |
| EBITDA Growth % | 41.83% | 33.56% | 36.54% | -6.73% | 45.33% | 19.35% | 36.22% | -2.45% | 4.72% | 7.3% | 10.92% | 9.36% | 35.46% | 17.2% | 25.39% | 0.91% | 42.95% | -7.08% | -2.33% | -5.26% | 20.16% | 5.46% | 31.88% | 24.26% | 69.42% | -44.41% | 116.42% | 63.4% | 17.33% | - |
| D&A (Non-Cash Add-back) | 855.08B | 695.22B | 662.8B | 532.19B | 437.25B | 422.39B | 331.72B | 286.88B | 292.55B | 260.14B | 223.83B | 222.51B | 200.25B | 156.18B | 131.35B | 107.68B | 87.81B | 80.81B | 81.51B | 79.88B | 73.71B | 76B | 69.95B | 69.03B | 65.11B | 48.88B | 41.45B | 25.2B | 15.27B | 9.79B |
| EBIT | 2.3T | 2.06T | 1.32T | 991.32B | 1.16T | 668.45B | 586.83B | 393.11B | 400.59B | 399.49B | 389.23B | 353.67B | 305.31B | 218.61B | 182.68B | 145.77B | 170.7B | 95.85B | 112.09B | 111.76B | 127.21B | 91.24B | 88.62B | 51.17B | 31.62B | 7.96B | 61.29B | 22.27B | 13.78B | 14.97B |
| Net Interest Income | 97.58B | 94.34B | 76.72B | 48.29B | 10.67B | 294.6M | 6.94B | 12.94B | 11.64B | 6.13B | 3.01B | 939M | -505.6M | -810.8M | 624.8M | 852.8M | 1.24B | 2.21B | 4.76B | 4.76B | 3.66B | 417.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 103.99B | 94.34B | 87.21B | 60.29B | 22.42B | 5.71B | 9.02B | 16.19B | 14.69B | 9.46B | 6.32B | 4.13B | 2.73B | 1.84B | 1.65B | 1.48B | 1.67B | 2.6B | 5.37B | 5.59B | 4.56B | 3.15B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 6.51B | 0 | 10.5B | 12B | 11.75B | 5.41B | 2.08B | 3.25B | 3.05B | 3.33B | 3.31B | 3.19B | 3.24B | 2.65B | 1.02B | 626.7M | 425.4M | 391.5M | 615M | 833.1M | 893.33M | 2.73B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 113.64B | 107.12B | 83.79B | 57.7B | 22.79B | 13.06B | 17.96B | 17.16B | 13.92B | 10.6B | 7.96B | 30.43B | 6.2B | 5.89B | 499M | 3.59B | 11.1B | 3.5B | 7.04B | 9.81B | 6.09B | 3.3B | 3.49B | -4.04B | -4.38B | 1.9B | 2.64B | -1.13B | -128.87M | 474.52M |
| Pretax Income | 2.3T | 2.06T | 1.41T | 979.17B | 1.14T | 663.04B | 584.75B | 389.86B | 397.54B | 396.16B | 385.92B | 350.48B | 302.07B | 215.96B | 181.66B | 145.15B | 170.27B | 95.46B | 111.47B | 120.32B | 133.34B | 94.55B | 92.11B | 47.16B | 27.27B | 10.14B | 63.94B | 21.15B | 13.65B | 15.45B |
| Pretax Margin % | 56.01% | 53.6% | 48.57% | 45.3% | 50.54% | 41.77% | 43.66% | 36.44% | 38.55% | 40.53% | 40.71% | 41.55% | 39.6% | 36.17% | 35.85% | 33.99% | 40.59% | 32.28% | 33.46% | 37.29% | 42.02% | 35.36% | 35.75% | 23.27% | 16.77% | 7.79% | 38.47% | 27.71% | 27.12% | 35.06% |
| Income Tax | 371.92B | 329.65B | 248.32B | 128.29B | 150.78B | 70.16B | 73.74B | 35.84B | 34.44B | 51.12B | 54.12B | 47.64B | 47.89B | 32.11B | 22.37B | 10.69B | 7.99B | 6B | 11.3B | 11.58B | 7.79B | 646.48M | -348.65M | 3.9B | 5.63B | -4.34B | -1.17B | -2.38B | -1.66B | -2.57B |
| Effective Tax Rate % | 16.14% | 15.98% | 17.66% | 13.1% | 13.18% | 10.58% | 12.61% | 9.19% | 8.66% | 12.9% | 14.02% | 13.59% | 15.85% | 14.87% | 12.32% | 7.37% | 4.69% | 6.28% | 10.14% | 9.63% | 5.84% | 0.68% | -0.38% | 8.28% | 20.66% | -42.8% | -1.83% | -11.27% | -12.18% | -16.61% |
| Net Income | 1.93T | 1.74T | 1.16T | 851.74B | 992.92B | 592.36B | 510.74B | 353.95B | 363.05B | 345B | 331.71B | 302.85B | 254.3B | 183.98B | 159.48B | 134.2B | 161.6B | 89.22B | 99.93B | 109.2B | 126.98B | 93.86B | 92.46B | 47.16B | 21.63B | 14.48B | 65.11B | 23.53B | 15.32B | 18.01B |
| Net Margin % | 47% | 45.1% | 40.02% | 39.4% | 43.86% | 37.32% | 38.14% | 33.08% | 35.2% | 35.3% | 34.99% | 35.9% | 33.34% | 30.82% | 31.47% | 31.43% | 38.52% | 30.17% | 30% | 33.84% | 40.01% | 35.1% | 35.89% | 23.27% | 13.31% | 11.12% | 39.17% | 30.83% | 30.43% | 40.89% |
| Net Income Growth % | 49.37% | 49.84% | 36% | -14.22% | 67.62% | 15.98% | 44.3% | -2.51% | 5.23% | 4% | 9.53% | 19.09% | 38.22% | 15.36% | 18.84% | -16.96% | 81.14% | -10.72% | -8.48% | -14.01% | 35.3% | 1.51% | 96.03% | 118% | 49.38% | -77.75% | 176.69% | 53.63% | -14.97% | - |
| Net Income (Continuing) | 1.93T | 1.73T | 1.16T | 851.03B | 993.29B | 592.88B | 511.01B | 354.03B | 363.11B | 345.04B | 331.8B | 302.83B | 254.18B | 183.85B | 159.29B | 134.45B | 162.28B | 89.47B | 199.87B | 109.2B | 125.39B | 93.86B | 92.46B | 47.16B | 21.63B | 14.48B | 65.11B | 23.53B | 15.32B | 18.01B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 41.42B | 41.18B | 35.01B | 24.34B | 14.81B | 2.42B | 952.5M | 681.7M | 676.3M | 699.7M | 795.1M | 962.4M | 127.2M | 266.7M | 2.54B | 2.44B | 4.56B | 3.97B | 4B | 3.6B | 667.11M | 610.21M | 63.39M | 101.87M | 104.35M | 10.13B | 321.72M | 7.53B | 9.68B | 10.87B |
| EPS (Diluted) | 372.83 | 333.05 | 230.80 | 159.65 | 198.60 | 113.95 | 95.25 | 65.70 | 69.10 | 65.50 | 64.65 | 61.25 | 51.60 | 35.65 | 31.55 | 26.45 | 28.90 | 16.70 | 19.55 | 20.15 | 24.15 | 18.60 | 17.30 | 9.20 | 4.20 | 5.25 | 13.35 | 7.80 | 3.85 | 4.65 |
| EPS Growth % | 46.88% | 44.3% | 44.57% | -19.61% | 74.29% | 19.63% | 44.98% | -4.92% | 5.5% | 1.31% | 5.55% | 18.7% | 44.74% | 13% | 19.28% | -8.48% | 73.05% | -14.58% | -2.98% | -16.56% | 29.84% | 7.51% | 88.04% | 119.05% | -20% | -60.67% | 71.15% | 102.6% | -17.2% | - |
| EPS (Basic) | - | 333.05 | 230.80 | 159.65 | 198.60 | 113.95 | 95.25 | 65.70 | 69.10 | 65.50 | 64.65 | 61.25 | 51.60 | 35.65 | 31.85 | 26.45 | 28.90 | 16.70 | 19.85 | 20.15 | 24.15 | 18.60 | 17.30 | 9.20 | 4.20 | 5.25 | 13.35 | 7.80 | 3.85 | 4.65 |
| Diluted Shares Outstanding | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.18B | 5.18B | 5.18B | 5.25B | 5.33B | 5.24B | 5.16B | 5.11B | 5.12B | 5.06B | 5.19B | 4.89B | 4.04B | 3.97B | 3.88B |
| Basic Shares Outstanding | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.19B | 5.18B | 5.18B | 5.18B | 5.17B | 5.21B | 5.32B | 5.24B | 5.16B | 5.1B | 5.12B | 5.06B | 4.46B | 4.89B | 3.15B | 3.97B | 3.88B |
| Dividend Payout Ratio | - | 27.17% | 31.34% | 34.25% | 28.73% | 44.87% | 50.77% | 73.26% | 57.14% | 52.61% | 46.9% | 38.53% | 30.59% | 42.27% | 48.75% | 57.92% | 48.09% | 86.17% | 76.93% | 70.87% | 48.62% | 49.46% | 13.16% | 0.94% | 2.09% | 0.28% | - | - | - | - |
Geopolitical supply chain disruption
As reported in recent financial filings, TSM's revenue growth has accelerated to 35.1% in 2026Q1, a significant expansion from the 21.6% observed in 2025Q4, largely fueled by the structural shift toward high-performance computing and AI-related silicon demand across the company's advanced node portfolio.
The transition from smartphone-centric revenue to HPC-led growth appears to be providing a more durable and higher-margin foundation for the business. This trajectory suggests that the company is successfully capturing the premium pricing associated with next-generation AI infrastructure, effectively decoupling its growth from traditional consumer electronics cycles.
Based on the company's latest income statement, gross margins reached a peak of 66.2% in 2026Q1, reflecting a consistent upward trend from the 53.0% reported in 2023Q4 as the maturation of advanced 3nm and 5nm nodes continues to drive superior manufacturing yield efficiencies.
The consistent expansion in gross margin indicates significant pricing power and the successful absorption of high depreciation costs associated with EUV lithography. Investors should monitor whether this margin profile can be sustained as the company scales its higher-cost manufacturing footprint in the United States and Europe.
According to the provided quarterly data, operating income has scaled from $260.2B in 2023Q4 to $657.3B in 2026Q1, demonstrating significant operating leverage as the company maintains tight control over SG&A expenses while revenue growth outpaces the incremental costs of supporting advanced node production.
The ability to grow operating margins to 58.0% suggests that the company's fixed-cost base is being utilized with increasing efficiency. This trend implies that the core foundry model is highly scalable, provided that utilization rates remain elevated across the most advanced process nodes.
As evidenced by the income statement, TSM's net income has grown to $572.5B in 2026Q1, with stock-based compensation remaining negligible at $0, suggesting that the reported earnings are of high quality and not significantly diluted by non-cash equity-based incentives common in the broader technology sector.
The absence of significant stock-based compensation and the reliance on internal cash flow for capital expenditure suggest a disciplined approach to shareholder value. The earnings quality appears robust, though analysts should remain cautious regarding the potential impact of future tax rate changes or currency fluctuations on net margins.
While current margins are strong, the company's strategic shift toward geographic diversification, as noted in recent operational updates, may introduce structural cost pressures that could challenge the historical 60%+ gross margin profile if overseas fabs fail to achieve the same cluster efficiencies as Taiwan-based operations.
Short-term investors should consider that the transition to higher-cost regions may lead to margin compression, potentially offsetting the gains from advanced node leadership. The market may be underestimating the long-term operational complexity and potential cost drag associated with maintaining a fragmented, multi-region manufacturing footprint.
Quick answers to the most common questions about buying TSM stock.
For fiscal year 2025, Taiwan Semiconductor Manufacturing Company Limited (TSM) reported total revenue of $3.85T. This represents a 8636.1% increase compared to $44.05B in 1997.
Taiwan Semiconductor Manufacturing Company Limited (TSM) is profitable, generating $1.74T in net income for the fiscal year ending 2025 with a net profit margin of 45.1%.
Taiwan Semiconductor Manufacturing Company Limited (TSM) reported an operating income of $1.96T, resulting in an operating profit margin of 50.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Taiwan Semiconductor Manufacturing Company Limited (TSM) generated $2.30T in gross profit for the year, representing a gross profit margin of 59.9%. This demonstrates the company's core pricing power and production efficiency.