Taiwan Semiconductor Earnings Preview

Taiwan Semiconductor (NYSE:TSM) is set to give its latest quarterly earnings report on Thursday, 2025-10-16. Here's what investors need to know before the announcement.

Analysts estimate that Taiwan Semiconductor will report an earnings per share (EPS) of $2.59.

Anticipation surrounds Taiwan Semiconductor's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.10, which was followed by a 2.12% drop in the share price the next day.

Here's a look at Taiwan Semiconductor's past performance and the resulting price change:

Market Performance of Taiwan Semiconductor's Stock

Shares of Taiwan Semiconductor were trading at $295.94 as of October 14. Over the last 52-week period, shares are up 47.1%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Taiwan Semiconductor

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Taiwan Semiconductor.

A total of 4 analyst ratings have been received for Taiwan Semiconductor, with the consensus rating being Outperform. The average one-year price target stands at $331.25, suggesting a potential 11.93% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Advanced Micro Devices and Micron Technology, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Advanced Micro Devices, with an average 1-year price target of $223.08, suggesting a potential 24.62% downside.
• Analysts currently favor an Outperform trajectory for Micron Technology, with an average 1-year price target of $193.89, suggesting a potential 34.48% downside.

Overview of Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Advanced Micro Devices and Micron Technology, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Taiwan Semiconductor ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

All You Need to Know About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with mid-60s market share in 2024. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 83,000 people.

Financial Insights: Taiwan Semiconductor

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Taiwan Semiconductor's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 38.65%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Taiwan Semiconductor's net margin excels beyond industry benchmarks, reaching 42.65%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Taiwan Semiconductor's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.71%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Taiwan Semiconductor's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.63% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Taiwan Semiconductor's debt-to-equity ratio is below the industry average. With a ratio of 0.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Taiwan Semiconductor visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.