[News] TSMC 2Q26 Net Income Soars 77% YoY to NT$706.6B Record; Gross Margin Beats Forecast at 67.7%

TSMC today announced consolidated revenue of NT$1,270.38 billion, net income of NT$706.56 billion, and diluted earnings per share of NT$27.25 (US$4.31 per ADR unit) for the second quarter ended June 30, 2026.

If TSMC’s quarterly net income exceeds NT$572.5 billion, it would mark the company’s highest-ever quarterly profit and its 10th consecutive quarter of earnings growth, as noted by Reuters. The report, citing analysts, highlights strong demand for its advanced 3nm and 2nm processes, along with CoWoS advanced packaging, as key growth engines fueling the company’s AI-driven momentum.

Year-over-year, second quarter revenue increased 36.0%, while net income and diluted EPS both increased 77.4%. Compared to first quarter 2026, second quarter results represented a 12.0% increase in revenue and a 23.4% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, second quarter revenue was $40.20 billion, which increased 33.7% year-over-year and increased 12.0% from the previous quarter.

Gross margin for the quarter was 67.7%, operating margin was 60.3%, and net profit margin was 55.6%.

Notably, TSMC’s gross margin already surged to a record 66.2% in 1Q26, then climbed even higher in 2Q26 to set another all-time high, surpassing the company’s 65.5%–67.5% guidance range.

In the second quarter, shipments of 2-nanometer accounted for 3% of total wafer revenue; 3-nanometer accounted for 30%; 5-nanometer accounted for 33%; and 7-nanometer accounted for 11%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 77% of total wafer revenue.

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(Photo credit: TSMC)