TSMC Earnings Summary — Q2 FY2026

• Revenue surged 36% year-over-year to TWD 1.27 trillion, reflecting massive demand for high-performance computing (HPC) and AI accelerators.
• Net income climbed nearly 78% YoY to TWD 706.6 billion, significantly outpacing revenue growth due to strong operating leverage.
• Operating margin reached a multi-year high of 60.3%, highlighting the pricing power TSMC wields in advanced semiconductor nodes.
• The quarter marks the fourth consecutive period of sequential revenue and net income growth, signaling a sustained industry upcycle.
• Gross profit margins remain elite at 67.7%, well above historical medians, despite the high costs associated with N3 and N2 node development.
• TSMC continues to dominate the advanced node market, capturing nearly 90% share in the transition to the most sophisticated process technologies.

Management maintains a focus on its 'Grand Alliance' strategy and long-term 2nm (N2) roadmap. While specific dollar guidance for Q3 was not provided in the table, the company remains committed to massive capital reinvestment to support AI infrastructure and maintain process technology leadership.

Improving

Financial performance has accelerated significantly over the last four quarters, with net profit growth nearly doubling the pace of revenue growth, indicating extremely high-quality earnings and execution.

The outlook remains exceptionally strong as TSMC is the primary beneficiary of the global AI build-out. Key risks remain geographic concentration in Taiwan and rising costs of international fab expansions in Arizona and Germany, but these are currently offset by record-high margins.