Taiwan Semiconductor Manufacturing Company Ltd.
TSM · NYSE
TSM · NYSE
Expected to report Oct 15, 2026 — estimated from last year’s reporting date.
Consensus is $4.45 EPS for Sep 2026 across 5 estimates, ranging $4.24 to $4.70.
TSMC delivered a materially stronger-than-expected second quarter, with diluted EPS of NT$27.25, or US$4.31 per ADR, versus the NT$3.87 consensus. Revenue of NT$1,270.38 billion rose 36.0% from a year earlier and 12.0% sequentially, while net income increased 77.4% year over year and 23.4% from the first quarter. The result therefore combined strong growth with further operating leverage: operating income rose 65.4% year over year and net income grew faster still.
The defining feature of the print was demand for leading-edge manufacturing. Technologies at 7 nanometers and below generated 77% of wafer revenue, with 2-nanometer contributing 3% in its early ramp, alongside 30% from 3-nanometer and 33% from 5-nanometer. Margins remained unusually high at 67.7% gross and 60.3% operating, although the third-quarter guide of 65%-67% gross and 56%-58% operating implies some near-term moderation. Management expects revenue of US$44.6 billion to US$45.8 billion in the third quarter, above the US$40.20 billion reported for the second quarter, supported by continued leading-edge demand and the accelerating 2-nanometer ramp.
TSMC attributed the quarter’s performance to strong demand for its leading-edge process technologies. Advanced technologies, defined as 7-nanometer and more advanced nodes, accounted for 77% of total wafer revenue. The mix included 3% from 2-nanometer, 30% from 3-nanometer and 33% from 5-nanometer, while 7-nanometer contributed 11%. Management expects demand for these technologies to remain strong in the third quarter, with a steep ramp-up of 2-nanometer.
Management expects third-quarter revenue of US$44.6 billion to US$45.8 billion, versus US$40.20 billion in the second quarter. The outlook is anchored by continued demand for leading-edge process technologies and the 2-nanometer ramp. At the assumed exchange rate of NT$32 per US dollar, gross margin is expected at 65%-67% and operating margin at 56%-58%, both below the second-quarter reported levels.
