[News] TSMC Q1 Revenue Guidance Hits $35.8B, Up 38% YoY; Unveils Record $56B Capex for 2026

After posting new high net profit in the fourth quarter, TSMC management projects 1Q26 revenue to land between $34.6 billion and $35.8 billion, representing a year-over-year increase of approximately 38% and a sequential gain of around 4%. On the profitability front, assuming an exchange rate of US$1 to NT$31.6, the company expects gross profit margins to range between 63% and 65%, while operating profit margins are anticipated to come in at 54% to 56%.

The strong margin, which further surpassed the previous quarter’s 59.9%, is expected to be driven by cost improvements, productivity gains and high utilization, although all three will still be affected to some extent by overseas fabs and exchange rates, CFO Wendell Huang said.

On the other hand, TSMC plans to further intensify its investment pace, with capital spending budgeted between $52 billion and $56 billion in 2026, Huang noted. In comparison, the company already deployed $40.9 billion in capital expenditures during 2025, marking a substantial increase from $29.8 billion in 2024.

Of the projected $52-56 billion capital budget, approximately 70-80% will be allocated to leading-edge process technologies. Around 10% will be dedicated to specialty technologies, addressing demand for automotive, industrial, and IoT applications. The remaining 10-20% will support advanced packaging and related capabilities, according to TSMC.

TSMC today announced consolidated revenue of NT$1,046.09 billion, net income of NT$505.74 billion, and diluted earnings per share of NT$19.50 (US$3.14 per ADR unit) for the fourth quarter ended December 31, 2025, which mark the company’s highest-ever quarterly earnings and an eighth straight quarter of profit growth.

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• [News] TSMC 2025 Q4 Net Profit Soars 35% YoY to Record NT$505.7B, EPS Hits NT$19.5

(Photo credit: TSMC)