Taiwan Semiconductor Manufacturing (NYSE:TSM) Releases Quarterly Earnings Results, Beats Expectations By $0.33 EPS

Key Points

• Taiwan Semiconductor Manufacturing reported $2.92 earnings per share, surpassing the expected $2.59 EPS by $0.33, with revenue reaching $32.36 billion, up 40.1% from the previous year.
• The company announced a dividend increase, declaring a quarterly payout of $0.8348, marking a rise from the previous $0.65 dividend.
• Several research firms have upgraded their ratings and price targets for TSM, with Barclays setting a new target at $330.00 and Susquehanna at $400.00.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) released its quarterly earnings data on Thursday. The semiconductor company reported $2.92 earnings per share for the quarter, beating the consensus estimate of $2.59 by $0.33, Zacks reports. Taiwan Semiconductor Manufacturing had a return on equity of 33.37% and a net margin of 42.91%.The company had revenue of $32.36 billion for the quarter, compared to analyst estimates of $951.89 billion. During the same period in the prior year, the company posted $1.94 EPS. The company's revenue was up 40.1% compared to the same quarter last year. Taiwan Semiconductor Manufacturing updated its Q4 2025 guidance to EPS.

Taiwan Semiconductor Manufacturing Stock Up 3.2%

NYSE:TSM opened at $305.48 on Thursday. Taiwan Semiconductor Manufacturing has a 12-month low of $134.25 and a 12-month high of $307.30. The company has a quick ratio of 2.15, a current ratio of 2.37 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $1.58 trillion, a P/E ratio of 34.83, a P/E/G ratio of 1.41 and a beta of 1.28. The stock's fifty day simple moving average is $259.95 and its 200-day simple moving average is $219.85.

Taiwan Semiconductor Manufacturing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Stockholders of record on Thursday, December 11th will be given a $0.8348 dividend. The ex-dividend date is Thursday, December 11th. This represents a $3.34 annualized dividend and a dividend yield of 1.1%. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $0.65. Taiwan Semiconductor Manufacturing's dividend payout ratio is 29.99%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FWL Investment Management LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 26.5% during the second quarter. FWL Investment Management LLC now owns 253 shares of the semiconductor company's stock worth $57,000 after acquiring an additional 53 shares in the last quarter. Zuckerman Investment Group LLC lifted its holdings in Taiwan Semiconductor Manufacturing by 4.1% during the second quarter. Zuckerman Investment Group LLC now owns 1,717 shares of the semiconductor company's stock worth $389,000 after acquiring an additional 67 shares in the last quarter. Resources Management Corp CT ADV bought a new position in Taiwan Semiconductor Manufacturing during the second quarter worth about $32,000. Riggs Asset Managment Co. Inc. bought a new position in Taiwan Semiconductor Manufacturing during the second quarter worth about $41,000. Finally, Vivaldi Capital Management LP lifted its holdings in Taiwan Semiconductor Manufacturing by 14.9% during the second quarter. Vivaldi Capital Management LP now owns 1,462 shares of the semiconductor company's stock worth $331,000 after acquiring an additional 190 shares in the last quarter. 16.51% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TSM. Barclays upped their price objective on Taiwan Semiconductor Manufacturing from $325.00 to $330.00 and gave the company an "overweight" rating in a research note on Thursday, October 9th. Wall Street Zen upgraded Taiwan Semiconductor Manufacturing from a "hold" rating to a "buy" rating in a research report on Sunday, August 31st. Susquehanna increased their price objective on Taiwan Semiconductor Manufacturing from $300.00 to $400.00 and gave the company a "positive" rating in a research report on Friday, October 10th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Taiwan Semiconductor Manufacturing in a research report on Wednesday, October 8th. Finally, Needham & Company LLC increased their price objective on Taiwan Semiconductor Manufacturing from $270.00 to $360.00 and gave the company a "buy" rating in a research report on Thursday. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing has an average rating of "Moderate Buy" and an average target price of $363.33.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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