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TSMC (Q2 Results): strong quarter, guidance raised

TSMC delivered a strong second quarter, beating expectations and raising guidance on the back of continued demand for advanced chip technology.
TSMC - technicians inspecting semiconductor components in a factory.jpg

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Second-quarter revenue rose 36% when ignoring currency moves, to $40.2bn ($39.0bn expected). Growth was supported by strong demand for leading-edge technologies, particularly in high-performance computing, which accounted for 66% of revenue.

Operating profit increased 65% to $24.3bn ($22.1bn expected), helped by operating expenses growing at a slower pace than revenue and improved gross margins.

Free cash flow rose 44% to $9.1bn, and net cash stood at $79.4bn at the end of the period.

Third-quarter revenue is forecast to land between $44.6-45.8bn ($42.8bn expected). The full year capital expenditure guide has been raised, now expected between $60-64bn.

Currency = US dollar.

The shares were down 2.2% in pre-market trading.

Our view

HL view to follow.

TSMC key facts

All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.

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Written by
Matt-Britzman
Matt Britzman
Senior Equity Analyst

Matt is a Senior Equity Analyst on the share research team, providing up-to-date research and analysis on individual companies and wider sectors. He is a CFA Charterholder and also holds the Investment Management Certificate.

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Article history
Published: 16th July 2026