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TSMC Q1 earnings crush estimates, with chipmaker lifting full-year sales guidance thanks to “extremely robust” AI demand

Management now expects sales growth of above 30% in 2026.

Luke Kawa

TSMC booked profits far better than expected in Q1, with management projecting strong sales for Q2 and the rest of the year.

The world’s largest foundry company reported earnings per share of NT$22.08 (~$0.70) in Q1, well above Wall Street’s call for $20.88.

Profitability was buoyed by gross margin of 66.2% exceeding the consensus call for 64.5%.

TSMC released its monthly sales for March last week, which showed that cumulative Q1 sales came in marginally above estimates.

But going forward, TSMC’s top line is poised to impress more meaningfully. Management anticipates that sales will range between $39 billion and $40.2 billion in Q2, while analysts were looking for $38.1 billion.

“AI related demand continues to be extremely robust,” Chairman and CEO CC Wei said on the conference call. “The shift from generative AI and the query mode to agentic AI and command and action mode is leading to another step up in the amount of tokens being consumed.”

Wei added that he now expects TSMC’s sales to grow by above 30% in US dollar terms this year. Three months ago, management said 2026 sales growth would be “close to 30%.”

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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