Taiwan Semiconductor Projects Q1 Revenues $34.6–$35.8 B With 63–65% Margins
Taiwan Semiconductor forecasts Q1 2026 revenues of $34.6 billion to $35.8 billion, up 25.5% year-over-year and 1.9% sequentially, and projects gross margins of 63%–65%, exceeding Q4’s 62.3%. The company anticipates Q1 earnings growth of 53.8% and full-year growth of 32.8% on sustained AI-driven data center demand.
1. Q1 2026 Financial Guidance
Taiwan Semiconductor advises first-quarter revenues between $34.6 billion and $35.8 billion, representing a 25.5% increase from Q1 2025 and a 1.9% rise from Q4 2025. The company expects gross margins of 63%–65%, up from 62.3% in the prior quarter.
2. AI and Data Center Demand
Continued investment by AI hyperscalers in data center infrastructure underpins strong demand for TSMC’s leading-edge process nodes. The company’s advanced 5nm and 3nm technologies remain in high demand for next-generation AI chips and servers.
3. Earnings Growth Outlook
TSMC forecasts first-quarter earnings growth of 53.8% year-over-year and full-year growth of 32.8%, driven by higher wafer shipments and improved pricing power. Enhanced profitability is expected to support sustained free cash flow generation and shareholder returns.