TSMC(US:TSM) ZACKSยท2025-10-17 16:40Core Insights - Taiwan Semiconductor Manufacturing Company Limited (TSM) reported third-quarter 2025 earnings per share (EPS) of $2.92, reflecting a 39% year-over-year increase and surpassing Zacks Consensus Estimates by 12.74% [1][11] - TSM's net revenues reached $33.10 billion, up 40.8% year-over-year, exceeding Zacks Consensus Estimates by 5.06% [1][11] Financial Performance - Revenue distribution by platform: high-performance computing (57%), smartphone (30%), Internet of Things (5%), automotive (5%), digital consumer electronics (1%), and other segments (2%) [2] - Wafer revenues by technology: 5nm technology contributed 37%, followed by 3nm at 23%, and 7nm at 14% [3][4] - Geographical revenue contributions: North America (76%), China (8%), Asia Pacific (9%), Japan (4%), and EMEA (3%) [5] - Gross margin was 59.5%, an increase of 170 basis points year-over-year; operating margin was 50.6%, up 310 basis points; net profit margin was 45.7%, expanding 290 basis points [6][11] Balance Sheet & Cash Flow - As of September 30, 2025, cash and cash equivalents were $90.107 billion, slightly down from $90.36 billion as of June 30, 2025; inventories decreased to $9.456 billion from $10.43 billion [7] - Accounts receivable increased to $10.082 billion from $8.08 billion in the previous quarter; long-term debt was $34.15 billion, marginally down from $34.73 billion [8] Guidance - For Q4 2025, TSM expects revenues between $32.2 billion and $33.4 billion, with a Zacks Consensus Estimate of $31.97 billion; anticipated gross profit margin between 59% and 61% and operating profit margin between 49% and 51% [9]