TSMC (NYSE: TSM) Q1 2026 profit jumps 58% with >30% 2026 growth target
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Taiwan Semiconductor Manufacturing Company (TSMC) reported very strong first quarter 2026 results. Revenue reached NT$1,134.10 billion (US$35.90 billion), up 35.1% year-over-year, while net income rose 58.3% to NT$572.48 billion and diluted EPS was NT$22.08.
Profitability was very high, with gross margin of 66.2%, operating margin of 58.1%, and net profit margin of 50.5%. Advanced technologies at 7-nanometer and below generated 74% of wafer revenue, led by 5-nanometer at 36% and 3-nanometer at 25%.
Management expects second quarter 2026 revenue between US$39.0 billion and US$40.2 billion, with gross margin of 65.5%–67.5% and operating margin of 56.5%–58.5%. They also expect 2026 revenue to increase by above 30% in US dollar terms, reflecting continued strong demand for leading-edge process technologies.
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Insights
TSMC delivered outsized Q1 growth with exceptional margins and strong 2026 guidance.
TSMC grew Q1 2026 revenue to NT$1,134.10 billion, up 35.1% year-over-year, while net income rose 58.3% to NT$572.48 billion. EPS reached NT$22.08, and in US dollars revenue was $35.90 billion, up 40.6%.
Margins were notably strong: gross margin of 66.2%, operating margin of 58.1%, and net margin of 50.5%. Return on equity was an annualized 40.5%, supported by high utilization of advanced nodes. Technologies at 7nm and below accounted for 74% of wafer revenue, with 5nm at 36% and 3nm at 25%.
Management guides Q2 2026 revenue to $39.0–$40.2 billion, with gross margin of 65.5%–67.5% and operating margin of 56.5%–58.5%, and expects 2026 revenue to grow by above 30% in US dollar terms. Future disclosures in company filings will show how actual results track against this outlook.
Key Figures
Q1 2026 revenue (NT$): NT$1,134.10 billion
Q1 2026 net income: NT$572.48 billion
Q1 2026 EPS: NT$22.08 per share
+5 more
8 metrics
Q1 2026 revenue (NT$)
NT$1,134.10 billion
Consolidated net revenue for Q1 2026, up 35.1% year-over-year
Q1 2026 net income
NT$572.48 billion
Net income attributable to shareholders, up 58.3% year-over-year
Q1 2026 EPS
NT$22.08 per share
Diluted earnings per share for Q1 2026
Q1 2026 gross margin
66.2%
Gross margin on consolidated basis for Q1 2026
Q1 2026 net profit margin
50.5%
Net profit margin for Q1 2026
Advanced node revenue mix
74% of wafer revenue
7-nanometer and more advanced technologies in Q1 2026
Q2 2026 revenue guidance
US$39.0–US$40.2 billion
Management outlook for second quarter 2026 revenue
2026 revenue growth outlook
Above 30% in US dollars
Expected full-year 2026 revenue increase in US dollar terms
Key Terms
gross margin, net profit margin, advanced technologies, free cash flow, +1 more
5 terms
gross margin financial
"Gross margin for the quarter was 66.2%, operating margin was 58.1%, and net profit margin was 50.5%."
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
net profit margin financial
"Gross margin for the quarter was 66.2%, operating margin was 58.1%, and net profit margin was 50.5%."
The net profit margin is the percentage of a company’s sales that remains as profit after paying all costs, interest and taxes — in other words, how much of each dollar of revenue the company keeps. For investors it’s a quick way to judge how efficiently a business turns sales into real profit, compare profitability across companies or industries, and spot trends in pricing power, cost control and potential returns to shareholders.
advanced technologies technical
"Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue."
free cash flow financial
"Free cash flow = Cash from operating activities – Capital expenditures (In NT$ billions) 1Q26 4Q25 1Q25"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
return on equity (ROE) financial
"ROE 40.5% 38.8% 32.7% +1.7 ppts +7.8 ppts"
Return on equity (ROE) measures how effectively a company uses its shareholders' money to generate profit. It shows the percentage of profit earned for each dollar invested by shareholders, similar to how a garden’s yield reflects the effort put into planting and tending. Investors use ROE to assess how well a company is managing its resources to create value.
1934 Act Registration No. 1-14700
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 6-K
_____________________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2026
(Commission File Number: 001-14700)
_____________________________
Taiwan Semiconductor Manufacturing Company Limited
(Translation of Registrant’s Name Into English)
_____________________________
No. 8, Li-Hsin Road 6
Hsinchu Science Park
Hsinchu 300-096, Taiwan
Hsinchu 300-096, Taiwan
Republic of China
(Address of Principal Executive Offices)
_____________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in papers as permitted by Regulation S-T Rule 101(b)(1):o
Indicate by check mark if the registrant is submitting the Form 6-K in papers as permitted by Regulation S-T Rule 101(b)(7):o
| SIGNATURES | |||||||||||||||||||||||
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||||||||||||||||||||
| Taiwan Semiconductor Manufacturing Company Limited | |||||||||||||||||
| Date: April 16, 2026 | By | /s/ Wendell Huang | |||||||||||||||
| Wendell Huang | |||||||||||||||||
| Senior Vice President & Chief Financial Officer | |||||||||||||||||
Exhibits
| Exhibit Number | Exhibit Description | ||||
| 99.1 | Press release issued by TSMC on April 16, 2026. | ||||
| 99.2 | 2026 First Quarter Earnings Conference Presentation Material. | ||||
 | ||
TSMC Reports First Quarter EPS of NT$22.08
HSINCHU, Taiwan, R.O.C., Apr. 16, 2026 -- TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$1,134.10 billion, net income of NT$572.48 billion, and diluted earnings per share of NT$22.08 (US$3.49 per ADR unit) for the first quarter ended March 31, 2026.
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$40.2 billion;
And, based on the exchange rate assumption of 1 US dollar to 31.7 NT dollars,
•Gross profit margin is expected to be between 65.5% and 67.5%;
•Operating profit margin is expected to be between 56.5% and 58.5%.
| ||
TSMC’s 2026 first quarter consolidated results:
(Unit: NT$ million, except for EPS)
1Q26 Amounta | 1Q25 Amount | YoY Inc. (Dec.) % | 4Q25 Amount | QoQ Inc. (Dec.) % | |||||||||||||
Net sales | 1,134,103 | 839,254 | 35.1 | 1,046,090 | 8.4 | ||||||||||||
Gross profit | 751,295 | 493,395 | 52.3 | 651,987 | 15.2 | ||||||||||||
Income from operations | 658,966 | 407,081 | 61.9 | 564,903 | 16.7 | ||||||||||||
Income before tax | 687,800 | 430,895 | 59.6 | 592,363 | 16.1 | ||||||||||||
Net income | 572,480 | 361,564 | 58.3 | 505,744 | 13.2 | ||||||||||||
EPS (NT$) | 22.08b | 13.94c | 58.3 | 19.50b | 13.2 | ||||||||||||
a: 1Q2026 figures have not been approved by Board of Directors
b: Based on 25,931 million weighted average outstanding shares
c: Based on 25,929 million weighted average outstanding shares
About TSMC
TSMC pioneered the pure-play foundry business model when it was founded in 1987, and has been the world’s leading dedicated semiconductor foundry ever since. The Company supports a thriving ecosystem of global customers and partners with the industry’s leading process technologies and portfolio of design enablement solutions to unleash innovation for the global semiconductor industry. With global operations spanning Asia, Europe, and North America, TSMC serves as a committed corporate citizen around the world.
TSMC deployed 305 distinct process technologies, and manufactured 12,682 products for 534 customers in 2025 by providing the broadest range of advanced, specialty and advanced packaging technology services. The Company is headquartered in Hsinchu, Taiwan. For more information please visit https://www.tsmc.com.
# # #
TSMC Spokesperson: Wendell Huang Senior Vice President and CFO | Media Contacts: Nina Kao Head of Public Relations Tel: 886-3-563-6688 ext.712-5036 Mobile: 886-988-239-163 E-Mail: press@tsmc.com | Ulric Kelly Public Relations Tel: 886-3-563-6688 ext.712-6541 Mobile: 886-978-111-503 E-Mail: press@tsmc.com | |||||||||
Unleash Innovation © 02026 TSMC, Ltd TSMC Property Unleash Innovation 2026 First Quarter Earnings Conference April 16, 2026
Unleash Innovation © 12026 TSMC, Ltd TSMC Property Agenda • Welcome Jeff Su, IR Director • 1Q26 Financial Results and 2Q26 Outlook Wendell Huang, CFO • Key Messages Wendell Huang, CFO C.C. Wei, Chairman & CEO • Q&A
Unleash Innovation © 22026 TSMC, Ltd TSMC Property Safe Harbor Notice • TSMC’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. • Information as to those factors that could cause actual results to vary can be found in TSMC’s 2024 Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) on April 17, 2025 and such other documents as TSMC may file with, or submit to, the SEC from time to time. • Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Unleash Innovation © 32026 TSMC, Ltd TSMC Property Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 1Q26 1Q26 4Q25 1Q25 1Q26 Over 4Q25 1Q26 Over 1Q25(In NT$ billions unless otherwise noted) Guidance Net Revenue (US$ billions) 35.90 34.6-35.8 33.73 25.53 +6.4% +40.6% Net Revenue 1,134.10 1,046.09 839.25 +8.4% +35.1% Gross Margin 66.2% 63.0%-65.0% 62.3% 58.8% +3.9 ppts +7.4 ppts Operating Expenses (94.01) (88.19) (85.19) +6.6% +10.4% Operating Margin 58.1% 54.0%-56.0% 54.0% 48.5% +4.1 ppts +9.6 ppts Non-Operating Items 28.83 27.46 23.82 +5.0% +21.1% Net Income Attributable to Shareholders of the Parent Company 572.48 505.74 361.56 +13.2% +58.3% Net Profit Margin 50.5% 48.3% 43.1% +2.2 ppts +7.4 ppts EPS (NT Dollar) 22.08 19.50 13.94 +13.2% +58.3% ROE 40.5% 38.8% 32.7% +1.7 ppts +7.8 ppts Shipment (Kpcs, 12"-equiv. Wafer) 4,174 3,961 3,259 +5.4% +28.1% Average Exchange Rate--USD/NTD 31.59 31.6 31.01 32.88 +1.9% -3.9% * Diluted weighted average outstanding shares were 25,931mn units in 1Q26 ** ROE figures are annualized based on average equity attributable to shareholders of the parent company
Unleash Innovation © 42026 TSMC, Ltd TSMC Property 1Q26 Revenue by Technology 0.11/0.13um 1% 90nm 1% 0.25um and above 1% 40/45nm 3% 28nm 7% 16/20nm 7% 0.15/0.18um 2% 65nm 4% 7nm 13% 5nm 36% 3nm 25% - 100 200 300 400 500 600 700 800 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 R e v e n u e ( N T $ B ) 7nm 5nm 3nm 7nm and Below Revenue
Unleash Innovation © 52026 TSMC, Ltd TSMC Property 1Q26 Revenue by Platform Automotive 4% DCE 1% Others 2% IoT 6% HPC 61% Smartphone 26%
Unleash Innovation © 62026 TSMC, Ltd TSMC Property Balance Sheets & Key Indices Selected Items from Balance Sheets 1Q26 4Q25 1Q25 (In NT$ billions) Amount % Amount % Amount % Cash & Marketable Securities 3,383.60 39.0 % 3,068.59 38.7 % 2,703.09 37.9 % Accounts Receivable 363.01 4.2 % 281.79 3.6 % 243.95 3.4 % Inventories 311.45 3.6 % 288.11 3.6 % 293.39 4.1 % Long-term Investments 166.57 1.9 % 172.37 2.2 % 160.79 2.2 % Net PP&E 3,954.68 45.7 % 3,691.84 46.5 % 3,400.81 47.7 % Total Assets 8,660.95 100.0 % 7,933.02 100.0 % 7,133.29 100.0 % Current Liabilities 1,714.25 19.8 % 1,458.02 18.4 % 1,399.80 19.6 % Long-term Interest-bearing Debts 901.02 10.4 % 896.06 11.3 % 986.98 13.8 % Total Liabilities 2,728.56 31.5 % 2,472.23 31.2 % 2,531.66 35.5 % Total Shareholders' Equity 5,932.39 68.5 % 5,460.79 68.8 % 4,601.63 64.5 % Key Indices A/R Turnover Days 26 26 28 Inventory Turnover Days 80 74 83 Current Ratio (x) 2.5 2.6 2.4 Asset Productivity (x) 1.2 1.2 1.0 * Total outstanding shares were 25,932mn units at 3/31/26 ** Asset productivity = Annualized net revenue / Average net PP&E
Unleash Innovation © 72026 TSMC, Ltd TSMC Property Cash Flows * Free cash flow = Cash from operating activities – Capital expenditures (In NT$ billions) 1Q26 4Q25 1Q25 Beginning Balance 2,767.86 2,470.76 2,127.63 Cash from operating activities 698.97 725.51 625.57 Capital expenditures (350.76) (356.91) (330.83) Cash dividends (129.66) (129.66) (103.72) Bonds payable 12.40 21.75 16.20 Investments and others 36.83 36.41 59.95 Ending Balance 3,035.64 2,767.86 2,394.80 Free Cash Flow * 348.21 368.60 294.74
Unleash Innovation © 82026 TSMC, Ltd TSMC Property 2Q26 Guidance Based on our current business outlook, management expects: ▪ Revenue 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, management expects: ▪ Gross profit margin to be between 65.5% and 67.5% ▪ Operating profit margin to be between 56.5% and 58.5%
Unleash Innovation © 92026 TSMC, Ltd TSMC Property Future Outlook Based on our current business outlook, management expects: ◼ 2026 revenue to increase by above 30% in US dollar terms
Unleash Innovation © 102026 TSMC, Ltd TSMC Property • Please visit TSMC's website (https://www.tsmc.com) and Market Observation Post System (https://mops.twse.com.tw) for details and other announcements • TSMC Board of Directors Approved NT$6.00 Cash Dividend for the Fourth Quarter of 2025 and Set June 11, 2026 as Ex-Dividend Date, June 17, 2026 as the Record Date and July 9, 2026 as the Distribution Date (2026/02/10) Recap of Recent Major Events
Unleash Innovation © 112026 TSMC, Ltd TSMC Property https://www.tsmc.com invest@tsmc.com
FAQ
How did TSM (TSMC) perform financially in the first quarter of 2026?
TSMC delivered very strong Q1 2026 results, with revenue of NT$1,134.10 billion and net income of NT$572.48 billion. Diluted EPS reached NT$22.08, reflecting 35.1% revenue growth and 58.3% net income growth year-over-year.
What profit margins did TSM (TSMC) report for Q1 2026?
TSMC reported very high profitability in Q1 2026, with a gross margin of 66.2%, operating margin of 58.1%, and net profit margin of 50.5%. These margins improved significantly compared with both the prior quarter and the prior year.
How important were advanced process technologies to TSM’s Q1 2026 results?
Advanced technologies were central to TSMC’s performance. Nodes at 7-nanometer and more advanced contributed 74% of total wafer revenue. Within this, 5-nanometer accounted for 36%, 3-nanometer for 25%, and 7-nanometer for 13% of wafer revenue.
What guidance did TSM (TSMC) give for the second quarter of 2026?
For Q2 2026, TSMC expects revenue between US$39.0 billion and US$40.2 billion. Based on an exchange rate of 1 US dollar to 31.7 NT dollars, management guides to gross margin of 65.5%–67.5% and operating margin of 56.5%–58.5%.
What is TSMC’s full-year 2026 revenue outlook in US dollar terms?
TSMC expects its 2026 revenue to increase by above 30% in US dollar terms. This outlook is based on management’s current business expectations and reflects anticipated continued strong demand for the company’s leading-edge semiconductor process technologies.
How strong was TSM (TSMC)’s cash generation and balance sheet in Q1 2026?
TSMC generated Q1 2026 free cash flow of NT$348.21 billion, calculated as cash from operating activities minus capital expenditures. Cash and marketable securities totaled NT$3,383.60 billion, representing 39.0% of total assets of NT$8,660.95 billion.