TSMC reported record Q2 2026 revenue of US$40.20 billion, up 33.7% year-on-year in dollar terms, at the high end of its own guidance. The company raised full-year 2026 capital expenditure to US$60–64 billion and now expects annual dollar revenue growth of slightly above 40%. It also added US$100 billion to its Arizona investment, bringing the total there to US$265 billion.
How did TSMC's Q2 2026 revenue perform?
TSMC posted consolidated Q2 2026 revenue of NT$1,270.38 billion (US$40.20 billion), landing at the high end of its own US$39.0–40.2 billion guidance rangeCITE:E1. Revenue grew 33.7% year-on-year in US dollar terms and 36.0% in New Taiwan dollar terms, while quarter-on-quarter growth reached 12.0%CITE:E1.
How did profitability and profit growth perform in Q2 2026?
TSMC's Q2 2026 gross margin reached 67.7%, with operating margin at 60.3% and net margin at 55.6%CITE:E2. Net income for the quarter totaled NT$706.56 billion, translating to earnings per share of NT$27.25, or US$4.31 per ADR unit, up 77.4% year-on-yearCITE:E3.
| Q2 2026 Metric | Value |
|---|
| Revenue | US$40.20B (NT$1,270.38B) |
| YoY growth (USD) | +33.7% |
| YoY growth (NTD) | +36.0% |
| QoQ growth | +12.0% |
| Gross margin | 67.7% |
| Operating margin | 60.3% |
| Net margin | 55.6% |
| Net income | NT$706.56B |
| EPS | NT$27.25 (+77.4% YoY) |
| ADR EPS | US$4.31 |
Where is the strong revenue growth coming from?
Advanced process technologies — 7-nanometer and below — accounted for approximately 77% of TSMC's Q2 2026 wafer revenue, concentrating the company's growth in AI and high-performance computing demandCITE:E9.
Why did TSMC raise its 2026 full-year guidance and capital expenditure?
TSMC raised its 2026 capital expenditure guidance from US$52–56 billion to US$60–64 billion at its July 16, 2026 earnings call, with 70–80% of that spending earmarked for advanced processesCITE:E5. The company also lifted its full-year 2026 US dollar revenue growth forecast to slightly above 40%, up from a previous estimate of just over 30%, citing sustained AI chip demandCITE:E6.
| 2026 Full-Year Guidance | Previous | Revised |
|---|
| Capital expenditure | US$52–56B | US$60–64B |
| Advanced-process share of capex | — | 70–80% |
| Full-year USD revenue growth | ~30%-plus | Slightly above 40% |
What do the Q3 outlook and first-half cumulative results show?
TSMC guided Q3 2026 revenue to US$44.6–45.8 billion, which would mark another quarterly record, with gross margin of 65–67% and operating margin of 56–58%CITE:E7. July 2026 monthly revenue reached NT$467.58 billion, up 44.7% year-on-year and 5.6% month-on-month, bringing January–July 2026 cumulative revenue to NT$2,872.06 billion, a 37.0% year-on-year increaseCITE:E4.
What is the scale of TSMC's expanded Arizona investment?
TSMC announced on July 16, 2026 an additional US$100 billion investment in Arizona, bringing its total commitment there to US$265 billionCITE:E8. The expanded plan covers 10 wafer fabs, 2 advanced packaging facilities, and 1 R&D centerCITE:E8.
What does this mean?
Taken together, the Q2 results and the subsequent guidance revisions point in a consistent direction: a 67.7% gross margin and a 77% advanced-process revenue share show output already concentrated in AI-driven, high-value nodesCITE:E2CITE:E9, while the new US$60–64 billion capex plan directs 70–80% of spending into that same advanced-process categoryCITE:E5. The Q3 guidance of US$44.6–45.8 billion extends the sequential growth pattern seen in Q2's 12.0% quarter-on-quarter increase and July's 5.6% month-on-month riseCITE:E1CITE:E4CITE:E7. The US$100 billion addition to Arizona, lifting total investment there to US$265 billion, was announced on the same July 16, 2026 call as the capex increase and guidance revisionCITE:E8CITE:E5.