TSMC posts record Q2 profit — NT$706.56 billion, up 77.4%, with full-year outlook raised
TL;DR
TSMC posted record Q2 profit of NT$706.56 billion and raised its 2026 revenue outlook.
TSMC posted its highest quarterly profit on record: second-quarter 2026 revenue reached NT$1.27038 trillion and net income reached NT$706.56 billion, up 77.4% year over year, with diluted earnings per share of NT$27.25. Revenue was US$40.20 billion, up 33.7% in US-dollar terms. New Taiwan dollar revenue rose 36.0% from a year earlier and 12.0% from the first quarter.
Gross margin reached 67.7%, above the top of TSMC's prior 65.5% to 67.5% guidance range. Operating margin was 60.3%, and net profit margin was 55.6%. The 2nm process accounted for 3% of wafer revenue, 3nm for 30%, 5nm for 33%, and 7nm for 11%. Technologies at 7nm and below represented 77% in total.
TSMC forecast third-quarter revenue of US$44.6 billion to US$45.8 billion, gross margin of 65.0% to 67.0%, and operating margin of 56.0% to 58.0%. The company also raised its 2026 capital-spending forecast to US$60 billion to US$64 billion, from the high end of its previous US$52 billion to US$56 billion range.
CEO C.C. Wei told the earnings conference that cloud-service customers continued to provide strong demand signals. TSMC raised its forecast for 2026 US-dollar revenue growth from more than 30% to slightly above 40%. Reuters reported that the market had expected NT$632.6 billion in second-quarter profit, NT$73.96 billion below the result. The midpoint of TSMC's third-quarter revenue guidance is US$45.2 billion.
via TrendForce / TSMC / Reuters
Gross margin reached 67.7%, above the top of TSMC's prior 65.5% to 67.5% guidance range. Operating margin was 60.3%, and net profit margin was 55.6%. The 2nm process accounted for 3% of wafer revenue, 3nm for 30%, 5nm for 33%, and 7nm for 11%. Technologies at 7nm and below represented 77% in total.
TSMC forecast third-quarter revenue of US$44.6 billion to US$45.8 billion, gross margin of 65.0% to 67.0%, and operating margin of 56.0% to 58.0%. The company also raised its 2026 capital-spending forecast to US$60 billion to US$64 billion, from the high end of its previous US$52 billion to US$56 billion range.
CEO C.C. Wei told the earnings conference that cloud-service customers continued to provide strong demand signals. TSMC raised its forecast for 2026 US-dollar revenue growth from more than 30% to slightly above 40%. Reuters reported that the market had expected NT$632.6 billion in second-quarter profit, NT$73.96 billion below the result. The midpoint of TSMC's third-quarter revenue guidance is US$45.2 billion.
via TrendForce / TSMC / Reuters
