TSMC's Q1 2026 results show accelerating growth and margin expansion, driven by AI/HPC demand and advanced node ramp. The 58% EPS growth and 700 bps gross margin expansion are significantly above trend. Monitor the upcoming June 4, 2026 shareholder meeting for any guidance updates and the ITC patent investigation outcome.
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Executive Summary
TSMC reported Q1 2026 results with net revenue of NT$1,134.1 billion (up 35.1% YoY), gross margin expanding to 66% from 59%, and EPS of NT$22.08 (up 58.3% YoY). The company also declared a Q1 2026 cash dividend of NT$7.00 per share, up from NT$5.00 in Q1 2025. Revenue growth was driven by strong demand across all platforms, particularly High Performance Computing (up 41% YoY) and 3-nanometer technology (up 54% YoY).
Key Facts
- Q1 2026 net revenue of NT$1,134.1 billion, up 35.1% from NT$839.3 billion in Q1 2025
- Gross profit margin expanded to 66% from 59% YoY
- Net income attributable to shareholders of NT$572.5 billion, up 58.3% YoY
- Basic EPS of NT$22.08, up from NT$13.95 in Q1 2025
- Q1 2026 cash dividend declared at NT$7.00 per share, up from NT$5.00 in Q1 2025
- High Performance Computing revenue grew 40.9% YoY to NT$694.7 billion
- 3-nanometer revenue grew 53.6% YoY to NT$246.0 billion
- Operating cash flow of NT$699.0 billion, up 11.7% YoY
- Capital expenditures of NT$350.8 billion in Q1 2026
Financial Impact
Revenue up 35.1% YoY, EPS up 58.3% YoY, gross margin up 700 bps to 66%
Risk Factors
- Pending ITC patent investigation (Longitude/Marlin) could disrupt operations or impose royalties
- Geopolitical risks from Taiwan-China tensions and US export controls
- Elevated capex (NT$350.8B in Q1) may pressure free cash flow if demand softens
- Customer concentration risk (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) | 0001046179-26-000278 |
| Document: tsm-fsx20260515x6k.htm | 0001046179-26-000278 |
| Document: 0001046179-26-000278-index-headers.html | 0001046179-26-000278 |
| Document: 0001046179-26-000278-index.html | 0001046179-26-000278 |
| Document: 0001046179-26-000278.txt | 0001046179-26-000278 |
Filters
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Jun 10, 2026 19w ago | 6-K | $11.24 $17.24 | ▲ +53.38% | ▲ +51.24% | — |
Jun 4, 2026 20w ago | 6-K | $17.24 | awaiting T+5 | — | — |
May 15, 2026 23w ago | 6-K | $17.24 $17.24 | · 0.00% | ▼ −0.96% | — |
May 15, 2026 23w ago | 6-K | $17.24 $17.24 | · 0.00% | ▼ −0.96% | — |
May 12, 2026 24w ago | 6-K | $17.24 $17.24 | ▲ +0.00% | ▼ −0.08% | — |
May 12, 2026 24w ago | 6-K | $17.24 $17.24 | ▲ +0.00% | ▼ −0.08% | — |
May 8, 2026 24w ago | 6-K | $17.24 $17.24 | ▲ +0.00% | ▼ −1.46% | — |
May 8, 2026 24w ago | 6-K | $17.24 $17.24 | ▲ +0.00% | ▼ −1.46% | — |
Apr 24, 2026 26w ago | 6-K | $17.24 $17.24 | ▼ −0.00% | ▼ −0.91% | — |
Apr 17, 2026 27w ago | 6-K | $17.24 $17.24 | ▼ −0.00% | ▼ −0.55% | — |
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