TSMC(US:TSM)2026-01-15 07:42Financial Performance - Net revenue for Q4 2025 was NT$1,046.09 billion, a 5.7% increase from NT$989.92 billion in Q3 2025 and a 20.5% increase from NT$868.46 billion in Q4 2024[6] - For the full year 2025, net revenue was NT$3,809.05 billion, a 31.6% increase from 2024, with US dollar revenue increasing 35.9% to US$122.42 billion[6] - Net revenue for Q4 2025 reached $33.731 billion, a 5.7% increase from Q3 2025 and a 20.5% increase year-over-year from Q4 2024[74] - Net revenue for 2025 reached USD 122,424 million, a significant increase from USD 89,431 million in 2024, representing a growth of 36.5%[76] Profitability Metrics - Gross margin improved to 62.3% in Q4 2025, up 2.8 percentage points from Q3 2025 and 3.3 percentage points from Q4 2024[6] - Operating income reached NT$564.90 billion in Q4 2025, reflecting a 12.8% increase from Q3 2025 and a 32.7% increase from Q4 2024[6] - Net income attributable to shareholders was NT$505.74 billion in Q4 2025, up 11.8% from Q3 2025 and up 35.0% from Q4 2024[6] - The operating margin for Q4 2025 was 54.0%, up 3.4 percentage points from Q3 2025 and up 5.0 percentage points from Q4 2024[6] - Net profit margin improved to 48.3% in Q4 2025, up from 45.7% in Q3 2025 and 43.1% in Q4 2024[15] - Gross profit for Q4 2025 was $21.023 billion, representing a gross margin of 62.3%, up from 59.5% in Q3 2025 and 59.0% in Q4 2024[74] - Net income for 2025 was USD 55,133 million, which is 45.0% of net revenue, compared to 40.5% in 2024[76] Expenses and Investments - Research and development expenses for Q4 2025 were NT$64.86 billion, contributing to total operating expenses of NT$88.19 billion[11] - Total operating expenses increased by NT$0.43 billion to NT$88.19 billion in 4Q25, representing 8.4% of net revenue, down from 8.9% in 3Q25[12] - Research and development expenses for 2025 were USD 7,920 million, accounting for 6.5% of net revenue, slightly down from 7.1% in 2024[76] - The company is investing $200 million in research and development for new technologies over the next year[72] Cash Flow and Assets - Cash from operating activities for 4Q25 was NT$725.51 billion, significantly higher than NT$426.83 billion in 3Q25[53] - Free cash flow for 4Q25 was NT$368.60 billion, compared to NT$139.38 billion in 3Q25[53] - Total assets increased to NT$7,933.02 billion, up from NT$7,354.11 billion in 3Q25[52] - Total cash and cash equivalents at the end of 2025 were USD 88,959 million, up from USD 68,382 million at the beginning of the year[79] Shareholder Returns - Earnings per share (EPS) for 2025 was NT$66.25, up from NT$45.25 in 2024[15] - EPS for 4Q25 was NT$19.50, up 11.8% from 3Q25 and 35.0% from Q4 2024[35] - Cash dividends for 2025 were NT$466.78 billion, up 28.6% from the previous year[54] - The company declared a cash dividend of NT$6.00 for the third quarter of 2025, with key dates set for March 2026[29] Future Outlook - For Q1 2026, TSMC expects revenue between US$34.6 billion and US$35.8 billion, with a gross profit margin forecasted between 63% and 65%[55][66] - The company plans a capital budget of US$52 billion to US$56 billion for 2026[65][66] - The company anticipates continued growth in revenue and profitability driven by strong demand in the semiconductor market[74] Market and Operational Insights - Advanced technologies (7-nanometer and above) accounted for 77% of total wafer revenue in Q4 2025[64] - The company deployed 305 distinct process technologies and manufactured 12,682 products for 534 customers in 2025[68] - Market expansion efforts have led to a 30% increase in market share in the Asia-Pacific region[72] - Operational efficiency initiatives have reduced costs by 5%, contributing to improved profit margins[72]