TSMC Posts 58% Profit Surge on Advanced Node Demand in Q1 2026
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TSMC ( (TSM) ) has issued an update.
On April 16, 2026, TSMC reported first-quarter 2026 results showing consolidated revenue of NT$1,134.10 billion and net income of NT$572.48 billion, equal to earnings per share of NT$22.08 for the quarter ended March 31. Revenue rose 35.1% and net income and EPS jumped 58.3% year-on-year, while gross, operating, and net margins reached 66.2%, 58.1%, and 50.5%, respectively.
In U.S. dollar terms, first-quarter revenue was $35.90 billion, up 40.6% from a year earlier and 6.4% sequentially, driven by strong demand for leading-edge 3-nanometer and 5-nanometer technologies, which together accounted for 61% of wafer revenue. Advanced nodes of 7-nanometer and below contributed 74% of wafer sales, underscoring TSMC’s technology leadership and reinforcing its central role in high-performance computing and AI chip supply.
Management highlighted that business momentum in early 2026 was supported by robust demand for advanced process technologies and indicated expectations of continued strength into the second quarter. The company’s outlook points to further revenue growth and sustained high profitability, with guidance for second-quarter revenue and margins signaling ongoing operational leverage and solid positioning in the global semiconductor cycle.
The most recent analyst rating on (TSM) stock is a Buy with a $480.00 price target. To see the full list of analyst forecasts on TSMC stock, see the TSM Stock Forecast page.
Spark’s Take on TSM Stock
According to Spark, TipRanks’ AI Analyst, TSM is a Outperform.
The score is driven primarily by excellent financial performance (elite margins, improving growth momentum, strong balance sheet) and a constructive earnings outlook with strong AI-led guidance. These positives are moderated by an extended technical setup (overbought signals) and a relatively rich valuation (P/E ~32 with low dividend yield), plus execution and margin-dilution risks tied to elevated CapEx and global/advanced-node ramp-ups.
To see Spark’s full report on TSM stock, click here.
More about TSMC
Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s leading dedicated semiconductor foundry, operating a pure-play manufacturing model that serves a global base of chip designers. Headquartered in Hsinchu, Taiwan, it provides advanced, specialty, and advanced packaging process technologies and design enablement services across Asia, Europe, and North America.
Average Trading Volume: 13,269,892
Technical Sentiment Signal: Buy
Current Market Cap: $1711.1B
See more insights into TSM stock on TipRanks’ Stock Analysis page.
