Key insights
- TSMC's Q1 2026 results significantly exceeded guidance, with revenue up 40.6% YoY to $35.9 billion and net income up 65.3% YoY. Strong performance in High Performance Computing (HPC) offsets weakness in smartphones. Improved efficiency metrics (AR & Inventory Turnaround) signal healthy demand and cash flow. This bullish report from a semiconductor bellwether suggests continued strength in the sector, positively influencing US equity markets, particularly tech stocks.
TSMC Q1 2026 Quarterly Results
Revenue = US $35.9 billion (up 40.6% YoY) * Guidance was US $34.6 to US $35.8 billion
Gross Margin = 66.2% (up 12.6% YoY) * Guidance was 63% to 65%
Net Income = US $18.1 billion (up 65.3% YoY) * Net Profit Margin = 50.5% (up 17.5% YoY)
Earnings Per Share = US $3.49 (up 64.6% YoY)
Free Cash Flow = US $11 billion (up 23% YoY)
Efficiency Metrics * Accounts Receivable Turnaround Days = 26 (down 7.1% YoY) Bullish signal: customers paying on time; no cash flow or product quality red flags * Inventory Turnaround Days = 80 (down 3.6%YoY) Bullish signal: high demand and efficient production.
Revenue by Platform (Top 3) * High Performance Computing = 61% (YoY growth rate +4%) * Smartphone = 26% (YoY growth rate -7%) * Internet of Things = 6% (YoY growth rate +20%)
Average Exchange Rate NTD/USD = 31.59 (down 1% YoY)
Position: Long TSM. NFA