TSMC Forecasts Q1 Revenue of $34.6–35.8 Billion, 25.5% Annual Growth
TSMC projects Q1 2026 revenue of $34.6–$35.8 billion, marking a 25.5% year-over-year and 1.9% quarter-over-quarter increase. It expects gross margins to expand to 63–65% and forecasts earnings growth of 53.8% for the quarter and 32.8% for the full year.
1. Q1 2026 Revenue Forecast
TSMC forecasts first-quarter 2026 revenue between $34.6 billion and $35.8 billion, exceeding Q4 2025’s $33.73 billion and reflecting a 25.5% year-over-year and 1.9% quarter-over-quarter rise.
2. Margin Expansion Expectations
The company expects gross margins to strengthen to between 63% and 65% in Q1 2026, up from 62.3% in Q4 2025, driven by higher utilization of advanced process nodes.
3. AI Data Center Demand Surge
Ramping investments by AI hyperscalers in new data centers are fueling strong orders for TSMC’s leading-edge chip technologies, underpinning its revenue and margin guidance.
4. Earnings Growth Outlook
TSMC projects earnings growth of 53.8% in Q1 2026 and 32.8% for the full fiscal year, reflecting robust demand and operational leverage on higher sales volumes.