Taiwan Semiconductor Manufacturing Company Limited (TSM) Income Statement

29Y historyFree accessUpdated daily

Revenue surged 36% year-over-year to $1.3T in 2026Q2, with gross margin expanding to 67.7% and operating margin reaching 60.3%, reflecting strong pricing power and operating leverage.

Annual statement

TSM Income Statement

Taiwan Semiconductor Manufacturing Company Limited (TSM) annual income statement — 29-year revenue, gross profit & net income history

Annual Quarterly

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	4.45T	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 %	30.85%	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	1.59T	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	2.86T	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 %	64.23%	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	364.6B	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	99.66B	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	270.12B	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	2.49T	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 %	56.03%	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	3.18T	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 %	71.55%	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 %	26.24%	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)	690.42B	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	2.51T	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	103.04B	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	105.76B	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	2.82B	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	179.86B	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	2.67T	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 %	60.07%	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	432.03B	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 %	16.16%	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	2.24T	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 %	50.37%	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 %	55.16%	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)	2.24T	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	41.95B	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)	432.26	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 %	56.85%	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%	-	-	-	-

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetHealthy

Cash FlowRobust

Top Statement Risk

Concentration in advanced nodes

Revenue Momentum Accelerates on AI Demand

TSM's revenue surged 36% year-over-year in 2026Q2, reaching $1.3T, with sequential acceleration from 35.1% in the prior quarter, according to the latest income statement data.

The growth is broad-based but likely driven by advanced node demand for AI accelerators and high-performance computing. The sequential acceleration from 35.1% to 36.0% suggests sustained momentum, though investors should monitor whether this pace is sustainable given the cyclicality of semiconductor demand.

Gross Margin Expansion Reflects Pricing Power

Gross margin expanded to 67.7% in 2026Q2, up from 53.1% in 2024Q1, as reported in financial statements, indicating strong pricing power and favorable mix shift toward advanced nodes.

The 14.6 percentage point expansion over ten quarters is remarkable, likely due to tight supply of leading-edge capacity and premium pricing for AI-related chips. This margin level far exceeds peers like Intel (34.8%) and UMC (29.0%), underscoring TSM's technological leadership. However, investors should watch for potential margin compression as competitors ramp up and capacity expands.

Operating Leverage Drives Margin Expansion

Operating income grew faster than revenue, with operating margin rising from 42.0% in 2024Q1 to 60.3% in 2026Q2, based on reported figures, demonstrating significant operating leverage.

The operating margin expansion of 18.3 percentage points outpaced gross margin expansion, indicating that SG&A and R&D costs are growing slower than revenue. R&D as a percentage of revenue declined from 7.8% in 2024Q1 to 5.6% in 2026Q2, while SG&A remained relatively stable, suggesting efficient scaling. This leverage is a key driver of the company's profitability.

Earnings Quality Supported by Low SBC

Net income margin reached 55.6% in 2026Q2, with stock-based compensation reported as zero in recent quarters, according to the income statement data, indicating high-quality earnings.

The absence of material SBC in the latest quarters suggests reported earnings are not inflated by non-cash charges, enhancing earnings quality. The effective tax rate appears stable, and net income growth of 87.7% year-over-year in 2026Q2 is driven by operational performance rather than one-time items. Investors should still monitor for any future SBC normalization.

Cost Discipline Amid Rapid Expansion

COGS as a percentage of revenue fell from 46.9% in 2024Q1 to 32.3% in 2026Q2, as per the income statement, reflecting improved cost efficiency and scale benefits.

The significant reduction in COGS ratio indicates that TSM is achieving better manufacturing efficiency, likely due to higher utilization rates and yield improvements on advanced nodes. R&D spending continues to grow in absolute terms but at a slower pace than revenue, allowing for margin expansion. This cost discipline is critical for sustaining profitability as the company invests in new fabs.

2024Q2 Marks Inflection Point

The inflection occurred in 2024Q2 when gross margin jumped from 53.1% to 53.2% and then accelerated, with revenue growth exceeding 40% year-over-year, as reported in the quarterly data.

This period marked the beginning of the AI-driven demand surge, with revenue growth jumping from 16.5% in 2024Q1 to 40.1% in 2024Q2. The subsequent quarters saw consistent margin expansion and revenue acceleration, indicating a structural shift in demand for advanced semiconductors. This inflection has had lasting impacts, positioning TSM as the primary beneficiary of the AI boom.

Concentration Risk in AI Demand

Despite stellar growth, TSM's reliance on a few advanced-node customers for AI chips poses a risk, as any slowdown in AI capex could sharply impact revenue, based on the reported figures.

The revenue growth is heavily concentrated in AI-related segments, which are subject to cyclicality and potential overcapacity. If AI demand normalizes or customers diversify their supply chains, TSM's growth rates and margins could compress. Additionally, geopolitical tensions and the expansion of competitors like Intel and Samsung could erode TSM's pricing power. Investors should monitor customer concentration and capacity expansion plans.

TSM — Frequently Asked Questions

Quick answers to the most common questions about buying TSM stock.

What was Taiwan Semiconductor Manufacturing Company Limited's (TSM) revenue in 2025?

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.

Is Taiwan Semiconductor Manufacturing Company Limited (TSM) profitable?

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%.

What is Taiwan Semiconductor Manufacturing Company Limited's operating profit margin?

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.

What is Taiwan Semiconductor Manufacturing Company Limited's gross profit and gross margin?

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.