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TSMC Reports First Quarter 2026 Financial Results
Year-over-year, first quarter revenue increased 35.1%, while net income and diluted EPS both increased 58.3%. Compared to fourth quarter 2025, first quarter results represented an 8.4% increase in revenue and a 13.2% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, first quarter revenue was $35.90 billion, which increased 40.6% year-over-year and increased 6.4% from the previous quarter.
Gross margin for the quarter was 66.2%, operating margin was 58.1%, and net profit margin was 50.5%.
In the first quarter, shipments of 3-nanometer accounted for 25% of total wafer revenue; 5-nanometer accounted for 36%; 7-nanometer accounted for 13%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue.
“Our business in the first quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into second quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies.”
Based on the Company’s current business outlook, management expects the overall performance for second quarter 2026 to be as follows:
- Revenue is expected to be between US$39.0 billion and US$40.2 billion;
And, based on the exchange rate assumption of 1 US dollar to 31.7 NT dollars
- Gross profit margin is expected to be between 65.5% and 67.5%;
- Operating profit margin is expected to be between 56.5% and 58.5%.
