TSMC Reports Robust Q1 Earnings, Strong Guidance Driven by Advanced Technologies
TSM has more than doubled off its 52-week low of $145.84.
Summary
TSMC announced significantly increased Q1 2026 revenue and EPS, driven by strong demand for its leading-edge 3nm and 5nm process technologies, and provided an optimistic outlook for Q2 and full-year 2026.
Key Events · Earnings and Guidance · TSM
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Strong Q1 2026 Financial Performance
Reported Q1 revenue of US$35.90 billion, a 40.6% increase year-over-year, and diluted EPS of NT$22.08 (US$3.49 per ADR unit), up 58.3% year-over-year.
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Robust Q2 2026 Revenue Guidance
Management expects Q2 revenue to be between US$39.0 billion and US$40.2 billion, indicating continued sequential growth.
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Optimistic Full-Year 2026 Outlook
Projected full-year 2026 revenue to increase by above 30% in US dollar terms.
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Advanced Technology Dominance
3-nanometer and 5-nanometer technologies accounted for 25% and 36% of total wafer revenue, respectively, with advanced technologies (7nm and below) comprising 74%.
Analysis · TSM · Manufacturing
TSMC's first-quarter results demonstrate exceptional growth, with revenue increasing over 40% year-over-year and EPS up nearly 60%. This performance is largely attributed to robust demand for its advanced 3-nanometer and 5-nanometer technologies, which now constitute a significant majority of its wafer revenue. The company's strong Q2 guidance and full-year outlook, projecting over 30% revenue growth, reinforce its dominant position in the semiconductor foundry market and suggest continued strong demand for high-performance computing and smartphone components. This positive financial report, coming while the stock trades near its 52-week high, is likely to further bolster investor confidence.
At the time of this filing, TSM was trading at $371.39 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $145.84 to $390.21. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.