2026 04 16 Earnings TSM Q1 2026

Summary

TSMC Q1 2026: $35.9B revenue +6.4% QoQ, beating guidance; gross margin 66.2% (+390bps QoQ); operating margin 58.1%. Full-year 2026 revenue growth guidance raised to >30% YoY. CapEx toward high end of $52-56B range. N2 ramping with "good yield" in high-volume manufacturing. A14 node development on track for 2028 volume production. N3 margin crosses corporate average in H2 2026. Q2 guidance: $39.0-$40.2B. Management flagged Middle East situation as risk for chemical/gas pricing — a direct callout relevant to helium supply.

Transcript

Jen-Chau Huang (CFO): Revenue increased 6.4% sequentially to USD 35.9 billion, slightly ahead of first quarter guidance. Gross margin expanded 390 basis points to 66.2%, with operating margin improving to 58.1%.

2026 CapEx guidance revised to "towards the high end of our range of between USD 52 billion and USD 56 billion."

C.C. Wei (CEO): AI-related demand continues to be extremely robust. Full year 2026 revenue to now grow by above 30% in U.S. dollar terms.

N2 capacity expansion across Taiwan, Arizona, and Japan through 2028. N2 technology ramping successfully in high-volume manufacturing with "good yield."

A14 advanced node development progressing on track for 2028 volume production.

[On margins:] N3 gross margin to "cross over to the corporate average in second half 2026."

[Risk factors noted:] Middle East situation may impact chemical and gas pricing. Rising component prices affecting consumer segments. Sustained supply-demand tightness expected through 2027.

Q2 guidance

Revenue: $39.0–$40.2B (approximately +9-12% QoQ)

Key financial metrics