TSMC announced revenue of $46.7 billion for the July-September quarter of fiscal 2026, up 16.2% from the previous quarter, exceeding the upper end of its forecast. With double-digit revenue growth also expected in the October-December quarter, the company said there were no signs of a slowdown in AI demand.
TSMC's revenue for the July-September quarter was $46.7 billion, up 16.2% from the previous quarter. Revenue in Taiwan dollars increased 17.6%, while operating margin was 58.7%. At the earnings briefing, CFO Wendel Huang said that increased demand for advanced processes supported revenue growth.
By application, HPC revenue rose 22% from the previous quarter and accounted for 68% of total revenue. Smartphone-related revenue increased 10%, while automotive-related revenue rose 23%. By technology, advanced processes at 7nm and below accounted for 79% of wafer revenue, comprising 2nm at 8%, 3nm at 33%, 5nm at 28% and 7nm at 10%. Gross margin was 66.4%, reportedly affected by initial ramp-up costs for 2nm.
Revenue for the October-December quarter is forecast at $52.3 billion-$54.3 billion, with the midpoint expected to be up 14% from the previous quarter and 58% year on year. Gross margin is expected to be 65%-67%, with a downward revision of 0.4 percentage points anticipated due to the 2nm ramp-up and overseas factory costs.