The massive beat and raised dividend signal strong underlying demand, especially from AI/HPC and advanced nodes. Traders should expect a positive initial reaction but watch for profit-taking given TSMC's huge market cap. The next catalyst will be management's forward guidance in the earnings call and any updates on capex plans for 2027.
Price Chart
Executive Summary
TSMC reported extraordinary Q2 2026 results: revenue surged 36% YoY to NT$1.27 trillion, net income jumped 78% to NT$707 billion, and EPS rose to NT$27.25 from NT$15.36. Gross margin expanded to 68% from 59%, driven by strong HPC and AI demand, initial 2nm revenue, and favorable product mix. The company also increased its quarterly cash dividend to NT$7.00 per share and resolved a patent litigation favorably. These results confirm TSMC's dominant position in advanced semiconductor manufacturing.
Key Facts
- Q2 2026 revenue NT$1,270,380,250 thousand, up 36% YoY
- Net income NT$706,780,923 thousand, up 78% YoY
- EPS NT$27.25 vs NT$15.36 in Q2 2025 (basic)
- Gross margin 68% vs 59% a year ago; operating margin 60% vs 50%
- 2-nanometer technology contributed NT$31.9 billion in first-time revenue
- Quarterly cash dividend increased to NT$7.00 per share from NT$5.00
- Gain on disposal of Vanguard International Semiconductor (VIS) of NT$63.2 billion
- Patent infringement complaint with Marlin terminated favorably on August 6, 2026
- Cash and cash equivalents at NT$3.13 trillion; total equity NT$6.47 trillion
Financial Impact
Revenue growth of 36% YoY to NT$1.27 trillion, net income growth of 78% to NT$707 billion, EPS of NT$27.25, gross margin expansion of 900 bps to 68%
Risk Factors
- Geopolitical tensions between Taiwan and China
- Cyclical downturns in semiconductor demand
- High capital expenditure and potential overcapacity in mature nodes
- Customer concentration (top 10 customers account for 84% of receivables)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001046179-26-000541 |
| Document: tsm-fsx20260814x6k.htm | 0001046179-26-000541 |
| Document: 0001046179-26-000541-index-headers.html | 0001046179-26-000541 |
| Document: 0001046179-26-000541-index.html | 0001046179-26-000541 |
| Document: 0001046179-26-000541.txt | 0001046179-26-000541 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Institutional Cluster | $418.51 | awaiting T+20 | — | $424.37 (+1.40%) |
Oct 22, 2026 5d ago | 6-K | $412.35 | awaiting T+20 | — | $424.37 (+2.91%) |
Oct 15, 2026 12d ago | 6-K | $422.25 | awaiting T+20 | — | $424.37 (+0.50%) |
Oct 12, 2026 14d ago | Institutional Cluster | $444.35 | awaiting T+20 | — | $424.37 (−4.50%) |
Oct 8, 2026 19d ago | 6-K | $457.99 | awaiting T+20 | — | $424.37 (−7.34%) |
Sep 24, 2026 4w ago | 6-K | $451.15 $412.35 | ▼ −8.60% | ▼ −8.18% | $424.37 (−5.94%) |
Sep 10, 2026 6w ago | 6-K | $428.03 $457.99 | ▲ +7.00% | ▲ +4.88% | $424.37 (−0.86%) |
Sep 9, 2026 6w ago | Insider Cluster | $435.36 $472.20 | ▲ +8.46% | ▲ +6.52% | $424.37 (−2.52%) |
Sep 4, 2026 7w ago | Insider Cluster | $428.91 $485.80 | ▲ +13.26% | ▲ +12.66% | $424.37 (−1.06%) |
Sep 1, 2026 8w ago | 6-K | $414.00 $456.19 | ▲ +10.19% | ▲ +9.87% | $424.37 (+2.50%) |
US Market Status
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