TSMC Q1 Sales Up 41%, Profit Soars 58% Ahead of 32% Q2 Revenue Jump
Taiwan Semiconductor Manufacturing Co. posted 41% year-over-year Q1 sales growth, a 58% surge in quarterly profit, and signaled capital expenditures will finish at the top of its guidance range. It raised full-year 2026 revenue outlook to above 30% growth and projected a 32% revenue increase in Q2.
1. Q1 Financial Performance
In the first quarter, TSMC delivered 41% year-over-year sales growth and achieved a 58% jump in net profit, reflecting robust end-market demand for advanced 5nm and 3nm process technologies.
2. 2026 Revenue Guidance Raised
Management raised full-year 2026 revenue growth guidance to above 30%, while forecasting a 32% increase in Q2 revenues, driven by escalating orders from AI, HPC and 5G semiconductor customers.
3. Capital Expenditure Outlook
TSMC indicated its annual capital expenditures will finish near the top of its previously disclosed range, underscoring ongoing investments to expand capacity for leading-edge chip production.
4. Industry Position and Outlook
Strong results and upgraded guidance position TSMC to capitalize on surging AI and high-performance computing demand, supporting potential further margin expansion and strategic capacity build-out.