SMIC earnings
SMIC's next results are expected on November 13, 2026. Watch whether SMIC's customers accept new capacity and keep demand from being pulled forward.
What has SMIC guided for 2026?
SMIC could reach HK$74.23 by October 2029 for a 37% return including dividends, if demand, margins, and capacity returns improve enough to produce durable shareholder cash returns. Management guided to revenue growth of 2.0%–4.0% for the quarter to September 2026. It guided to gross margin of 26.0%–28.0%. For 2026, it expects revenue growth above the industry average in its markets and capital expenditure roughly flat against the previous year.
| Period | Low | High | Given on | |
|---|---|---|---|---|
| Revenue | Quarter to Sep 2026 | 2.0% | 4.0% | Aug 13, 2026 |
| Gross margin | Quarter to Sep 2026 | 26.0% | 28.0% | Aug 13, 2026 |
| Revenue growth | Year to Dec 2026 | Feb 10, 2026 | ||
| Capital expenditure | Year to Dec 2026 | Feb 10, 2026 |
What this means. The revenue row shows expected sales growth from the previous quarter, not the total sales the company expects to make.
Did SMIC keep its spending promise?
Capital spending creates a second test. SMIC expected spending to be roughly flat in its February 2025 presentation, but it reached about US$8.1 billion. Depreciation then spreads the cost of factories and equipment across their useful lives, reducing reported profit even though it is not a new cash payment. SMIC warned in February 2026 that depreciation would rise 30 percent.
What is SMIC's revenue and profit trend?
Second-quarter revenue reached US$3,005.588 million. Gross margin rose from 20.4% to 25.3%, while operating income rose from US$150.677 million to US$534.179 million. Higher shipments and a higher blended selling price helped, although some customers brought deliveries forward, moving revenue between periods.
Shareholder profit rose to US$479.197 million, up 261.7% year on year. But first-half designated non-recurring items contributed US$243.262 million after tax and minority interests. Removing them leaves first-half profit of US$433.383 million. Underlying profit still grew, but less dramatically than the reported figure.
| Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3,005.588 | 2,505.487 | 2,488.71 | 2,381.822 | 2,209.066 | 2,247.201 | 2,207.281 | 2,171.188 |
| Gross margin | 25.3% | 20.1% | 19.2% | 22.0% | 20.4% | 22.5% | 22.6% | 20.5% |
| Operating income | 534.179 | 247.792 | 298.62 | 351.069 | 150.677 | 309.571 | 214.467 | 169.887 |
| Net income | 479.197 | 197.448 | 172.851 | 191.758 | 132.487 | 188.035 | 107.587 | 148.8 |
| EPS, diluted | 0.06 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | 0.02 |
What this means. Free cash flow is lower than cash from operations because it also subtracts spending on equipment and software, lease payments, and interest paid.
What should I watch in SMIC's next results?
The first checkpoint is the September-quarter result, publicly scheduled for November 13, 2026, subject to final confirmation. Investors should look for higher prices, shipments from new capacity and continued customer acceptance. Those details will distinguish lasting demand from customers ordering early to secure supply.