TSMC: Fiscal 2Q26 Financial Results

TSMC announced consolidated revenue of NT$1,270.38 billion, net income of NT$706.56 billion, and diluted earnings per share of NT$27.25 (US$4.31 per ADR unit) for the second quarter ended June 30, 2026.Year-over-year, second quarter revenue increased 36.0%, while net income and diluted EPS both increased 77.4%. Compared to first quarter 2026, second quarter results represented a 12.0% increase in revenue and a 23.4% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, second quarter revenue was $40.20 billion, which increased 33.7% YoY and increased 12.0% from the previous quarter.

Gross margin for the quarter was 67.7%, operating margin was 60.3%, and net profit margin was 55.6%.

In the second quarter, shipments of 2-nanometer accounted for 3% of total wafer revenue; 3-nanometer accounted for 30%; 5-nanometer accounted for 33%; and 7-nanometer accounted for 11%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 77% of total wafer revenue.

“Our business in the second quarter was supported by strong demand for our leading-edge process technologies,” said Wendell Huang, SVP and CFO of TSMC. “Moving into third quarter 2026, we expect our business to be supported by continued strong demand for our leading-edge process technologies, including the steep ramp-up of our 2-nanometer technology.”

Based on the company’s current business outlook, management expects the overall performance for third quarter 2026 to be as follows:

• Revenue is expected to be between US$44.6 billion and US$45.8 billion

And, based on the exchange rate assumption of 1 US dollar to 32 NT dollars,

• Gross profit margin is expected to be between 65% and 67%
• Operating profit margin is expected to be between 56% and 58%