TSMC profit soars on AI demand; CSX, Interactive Brokers beat as Q3 earnings season heats up

TSMC beats and lifts 2025 outlook on AI demand, while CSX and Interactive Brokers top forecasts. Banks and airlines post solid prints; healthcare and insurers are mixed.

Categorized in: AI News Finance
Published on: Oct 17, 2025
TSMC profit soars on AI demand; CSX, Interactive Brokers beat as Q3 earnings season heats up

Q3 earnings brief: TSMC leads on AI demand, CSX and Interactive Brokers top estimates

Third quarter reporting is in full swing. Consensus expects S&P 500 EPS growth of 7.9% year over year, the ninth straight quarter of gains, but slower than Q2's 12% pace, per FactSet.

Semiconductors: TSMC raises 2025 outlook on persistent AI orders

TSMC reported a 39% jump in profit and lifted its 2025 revenue outlook to mid-30% growth as AI demand stays firm. Q3 revenue reached NT$989.92 billion (about $32.2 billion), above estimates. EPS came in at NT$17.44 ($2.92 per ADR), beating $2.60 expected.

Management cited continued strength in leading-edge nodes. With Apple, Nvidia, and AMD as anchor customers, capacity and pricing power remain favorable. IR materials are available at TSMC investor relations.

Brokers and trading: Interactive Brokers benefits from higher activity

Interactive Brokers posted EPS of $0.59 vs. $0.53 expected on revenue of $1.65 billion vs. $1.52 billion. Client accounts rose 32% to 4.13 million, driving commissions up 23% to $537 million and net interest income up 21% to $967 million.

Management flagged more dip-buying and participation in rallies. Engagement and balances are trending up, a positive setup if volatility persists.

Freight: CSX offsets coal weakness with intermodal and pricing

CSX delivered EPS of $0.44 vs. $0.42 expected. Revenue fell 1% to $3.59 billion but beat estimates; volume rose 1% to 1.61 million units.

Intermodal gains and selective pricing helped counter lower coal prices and softer merchandise volume. Operating margin contracted to 30.3% from 37.4% a year ago, keeping cost control and mix in focus.

Wall Street: dealmaking and trading lift the majors

Large banks continued to outperform. Bank of America's net income rose 23% to $8.47 billion on stronger capital markets.

Morgan Stanley profits surged 45%. Investment banking fees jumped 44% to $2.1 billion, aided by marquee transactions, while client trading revenue rose 24% with combined equities and FICC at $6.28 billion.

Regionals: solid beats with cautious guidance

U.S. Bancorp reported net income of $2.00 billion ($1.22 per share), topping estimates. Revenue hit a record $7.3 billion; net interest income increased 2% to $4.25 billion. Credit provisions rose 2.5% to $571 million.

Elsewhere, regional bank stocks slipped post-prints. PNC beat with EPS of $4.35 vs. $4.04 but guided Q4 net interest income up 1.5% with fee income down ~3%. First Horizon noted a $52 million year-over-year deposit decline.

Brokerages: Schwab posts record revenue and stronger margins

Charles Schwab delivered EPS of $1.26, a penny above consensus. Revenue hit a record $6.13 billion, up 27% year over year.

Client assets grew 17% to $11.59 trillion. Net interest margin expanded 21 bps to 2.86%, supported by lower high-cost funding, strong securities lending, and increased client borrowing.

Airlines: United guides above Street as premium demand holds

United Airlines posted adjusted EPS of $2.78 vs. $2.66 expected on revenue of $15.2 billion, a slight miss. Capacity (ASMs) reached 87.42 billion vs. 86.51 billion expected; PRASM was 73.77 billion vs. 72.71 billion expected.

Q4 EPS guidance of $3.00-$3.50 topped $2.82 estimates. Premium product and tech upgrades continue to support yield and loyalty.

Healthcare and insurance: mixed prints

Abbott reported diluted EPS of $0.94 vs. $1.04 expected on $11.3 billion of revenue, roughly in line. Nutrition grew 4.2% overall (international +13.3%, U.S. -6.5%), Diagnostics fell 6.6%, Established Pharmaceuticals rose 7.5%, and Medical Devices climbed 14.8%.

Progressive missed with EPS of $4.44 vs. $5.30 and revenue of $21.3 billion vs. $21.6 billion; net income fell 48% year over year. A 2023 Florida policy change triggered a $950 million September expense and may lead to profit credits to Florida auto policyholders if statutory limits are exceeded.

What it means for your positioning

  • Semis: AI-driven demand is intact. Watch TSMC node mix, capex cadence at hyperscalers, and any signs of lead-time normalization.
  • Brokerages: Higher client activity and balances support earnings leverage. Sensitivity to rate moves and volatility remains a tailwind.
  • Rails: Intermodal is improving, but coal remains a drag. Margin discipline and pricing mix are key to 2026 expectations.
  • Banks: Capital markets are re-accelerating. For regionals, track net interest margin stabilization, deposit costs, fee trends, and provision creep.
  • Airlines: Premium and corporate demand are holding up. Capacity management and loyalty monetization should drive Q4 yield.
  • Healthcare/Insurance: Devices strong; diagnostics normalizing. Regulatory and reserve dynamics can swing insurer results quarter to quarter.

What's next on the calendar

Investors are watching updates from names including Johnson & Johnson, Domino's, Albertsons, Progressive, Abbott, Prologis, Marsh & McLennan, Infosys, American Express, Truist, State Street, and Ally Financial.

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