Taiwan Semiconductor Manufacturing Company Limited

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Very Bullish +85

TSMC Reports First Quarter EPS of NT$22.08|Taiwan Semiconductor Manufacturing Company Limited - Taiwan Semiconductor

AI-generated analysis

📈 TSMC reported first-quarter revenue of NT$1,134.10 billion ($35.90 billion), representing a 35.1% year-over-year increase.

💰 Net income reached NT$572.48 billion, with diluted earnings per share rising to NT$22.08 (US$3.49 per ADR).

📊 Gross margin for the quarter stood at 66.2%, while net profit margin was 50.5% and operating margin was 58.1%.

⚡ Advanced process technologies accounted for the majority of wafer revenue, with 7-nanometer and more advanced nodes comprising 74% of total shipments.

🔄 Specifically, 3-nanometer wafers made up 25% of revenue, while 5-nanometer and 7-nanometer accounted for 36% and 13% respectively.

🗓️ Management projects second-quarter 2026 revenue to range between US$39.0 billion and US$40.2 billion based on current business outlook.

💹 CFO Wendell Huang cited strong demand for leading-edge process technologies as a key driver of first-quarter performance.

⚠️ Q2 forecasts assume an exchange rate of 1 US dollar to 31.7 NT dollars, with gross profit margin expected between 65.5% and 67.5%.

📉 Operating profit margin is anticipated to remain between 56.5% and 58.5% for the upcoming second quarter.

🚀 Year-over-year earnings metrics improved significantly, with net income growing 58.3% and EPS climbing by the same percentage.

Bullish Signals
  • Revenue increased 35.1% year-over-year to NT$1,134.10 billion, demonstrating robust market demand.
  • Diluted earnings per share rose 58.3% year-over-year to NT$22.08 (US$3.49 per ADR unit).
  • Gross margin for the quarter reached 66.2%, while operating and net profit margins hit 58.1% and 50.5% respectively.
  • Advanced technologies, including 7-nanometer and more advanced nodes, accounted for 74% of total wafer revenue.
  • Management expects second quarter 2026 revenue between US$39.0 billion and US$40.2 billion, indicating continued growth.
  • CFO Wendell Huang highlighted strong demand for leading-edge process technologies supporting the first quarter performance.
  • Revenue in US dollars increased 40.6% year-over-year to $35.90 billion, showing significant expansion in the global market.
Risk Factors
  • The article lacks any negative aspects or risks, focusing entirely on strong financial performance and positive outlooks.
  • Revenue guidance for Q2 2026 ($39.0 billion - $40.2 billion) does not include downside catalysts or potential headwinds, which could be seen as a risk if actual results fall short.
Full Analysis
TSMC announced its first quarter financial results for the period ended March 31, 2026, reporting a consolidated revenue of NT$1,134.10 billion (approximately US$35.90 billion) and net income of NT$572.48 billion. Diluted earnings per share reached NT$22.08, which translates to US$3.49 per ADR unit. Comparing these figures year-over-year, first quarter revenue rose 35.1%, while both net income and diluted EPS climbed significantly by 58.3%. Quarter-over-quarter results showed an 8.4% increase in revenue and a 13.2% surge in net income relative to the fourth quarter of 2025. Profitability metrics for the quarter were robust, with gross margin at 66.2%, operating margin at 58.1%, and net profit margin at 50.5%. In terms of advanced node shipments, 3-nanometer technology accounted for 25% of total wafer revenue, while 5-nanometer made up 36% and 7-nanometer 13%. Combined, advanced technologies—defined as 7-nanometer and more advanced processes—contributed 74% of total wafer revenue, indicating sustained demand for the company's most sophisticated manufacturing capabilities. Commenting on the results, Wendell Huang, Senior VP and Chief Financial Officer of TSMC, stated that first quarter business was driven by strong demand for leading-edge process technologies and expressed confidence in similar trends continuing into the second quarter. Looking ahead to Q2 2026, management expects revenue between US$39.0 billion and US$40.2 billion based on a current exchange rate assumption of 1 US dollar to 31.7 NT dollars. Under this scenario, the company forecasts gross profit margins between 65.5% and 67.5%, with operating profit margins anticipated to range between 56.5% and 58.5%.