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Research updated: Jul 11, 2026, 12:00 AM UTC

Taiwan Semiconductor Manufacturing (TSM) Q1 2026

TSMC reported first-quarter 2026 results and issued second-quarter revenue and margin guidance, with leading-edge demand remaining the central operating driver.

Reported outcomes

Net revenue
US$35.90 billion
Up 40.6% year over year
Gross margin
66.2%
Up 3.9 percentage points from Q4 2025
Operating margin
58.1%
Up 4.1 percentage points from Q4 2025

Management guidance

  • For Q2 2026, TSMC guided to US$39.0-US$40.2 billion of revenue, 65.5%-67.5% gross margin and 56.5%-58.5% operating margin.

Risks that still need monitoring

  • Geographic concentration

    A substantial portion of production remains concentrated in Taiwan, increasing exposure to geopolitical tension, natural disasters and infrastructure disruption.

  • Overseas-fab economics

    New overseas fabs may carry higher costs and dilute margins while utilization and local supply chains mature.

  • Customer and end-market exposure

    Dependence on major customers and AI and high-performance-computing demand creates downside if customer orders or semiconductor demand weaken.

Market reaction

-1.23%

2026-04-15 $375.10 → 2026-04-17 $370.50

Method: previous trading-day close to the first full trading-day close after the announcement.

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Primary sources

TSMC 2026 Q1 Quarterly ResultsTaiwan Semiconductor Manufacturing Company Limited · earningsVerified

Fetched: Jul 11, 2026, 12:00 AM UTC

Published: Apr 16, 2026, 12:00 AM

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TSMC Investor RelationsTaiwan Semiconductor Manufacturing Company Limited · companyVerified

Fetched: Jul 11, 2026, 12:00 AM UTC

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2025 Annual Report on Form 20-FTaiwan Semiconductor Manufacturing Company Limited · filingVerified

Fetched: Jul 11, 2026, 12:00 AM UTC

Published: Apr 17, 2026, 12:00 AM

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TSM editorial research profileAlphaVue Research · editorialVerified

Fetched: Jul 11, 2026, 12:00 AM UTC

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