Hon Hai Technology Group (Foxconn) Announces Third Quarter 2026 Financial Results
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4Q26 demand strong, raising
FY26 outlook for all 4 major product segments
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Optimistic for 2027; net profit
in 3Q26 sets new quarterly record
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AI business yielding better
profitability and capital efficiency
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Key components demand surpassing
supply is shared challenge for AI, ICT supply chains 12 November 2026, Taipei, Taiwan – Hon Hai Technology Group (Foxconn) (TWSE:2317) today announced its third
quarter 2026 financial results.
Revenue, gross profit, operating profit, and net
profit for the third quarter and the first nine months of the year all reached
record highs for the respective periods. Earnings per share (EPS) reached
NT$5.51 for the July-September quarter and NT$13.35 for the January-September
period – both representing sharply higher growth compared to same periods last
year. Looking ahead to the fourth quarter, the company anticipates strong
growth on both a quarterly and on-year basis. While the target for strong full-year
growth remains unchanged, the outlook for all four major product segments has
been revised upward. The company maintains a positive outlook for AI and smart
consumer electronics products for the coming year and, for the first time,
expressed an optimistic view regarding performance in 2027.
In the third quarter, Foxconn recorded revenue of
NT$3.02 trillion, up 46% on-year; gross profit of NT$181.5 billion jumped 39%
at the same time; operating profit at NT$115.4 billion surged 64%; and net
profit (attributable to owners of the parent company) of NT$77.5 billion,
climbed 34% from a year ago. These figures also represent quarterly growth of
19%, 17%, 22%, and 29%, respectively, over the second quarter. EPS for the
July-September period reached NT$5.51 – an increase of NT$1.36 from NT$4.15 in
the same period a year ago, and up by NT$1.24 from the second quarter. Gross
margin, operating margin, and net margin stood at 6.02%, 3.83%, and 2.57%,
respectively. Net profit after tax also hit a new record for any quarter.
For the January-September period, cumulative revenue
reached NT$7.66 trillion, 39% higher on-year; with gross profit at NT$467
billion, up 35%; operating profit at NT$285.8 billion, rising 65%; and net
profit (attributable to owners of the parent company) increasing 30% to NT$187.4
at the same time. Gross margin, operating margin, and net margin were 6.10%,
3.73%, and 2.45%, respectively, reflecting ongoing optimization of the
company’s core operational profitability. EPS for the first three quarters of
this year reached NT$13.35, an increase of NT$2.97 from the NT$10.38 recorded
in the same period last year.
The conference marked Foxconn’s return to an
in-person quarterly investor meeting since the pandemic, with the option for
online participation. Chairman Young Liu stated that in-person interaction
provides investors with a deeper understanding of the company’s recent
developments and future outlook. Going forward, Foxconn plans to hold hybrid
(in-person + online) investor conferences annually around this time of year.
Reflecting on the third quarter, the cloud and
networking products segment – bolstered by robust demand for AI servers –
exceeded even the most optimistic initial forecasts, serving as the primary
driver behind the Group’s record-high revenue. Chairman Liu noted that AI
servers have become Foxconn’s most significant growth engine and will continue
to facilitate the optimization of both the company’s product mix and its client
base.
FY26 outlook raised for all 4 major product
segments
Looking ahead to the fourth quarter, Chairman Liu
stated that the AI business is set to continue its growth. Combined with the
arrival of the traditional peak season for ICT products, overall revenue is
expected to show strong growth both sequentially and from year-ago levels.
Specifically, with the shipment of a new generation of AI server racks, revenue
from AI servers is projected to continue growing on a quarterly basis, while
general-purpose servers are expected to see moderate growth. Together, these factors
will drive significant on-quarter and strong on-year growth for the company’s
cloud and networking products.
The smart consumer electronics products segment is in
its peak shipment period for the fourth quarter. With robust product demand and
higher average selling prices, strong growth is anticipated both on a
sequential and on-year basis. The computing products segment continues to be
affected by tight memory supply, leading a likely slight decline
quarter-over-quarter; however, rising prices for certain components have driven
up average selling prices, pointing to significant year-over-year growth.
Meanwhile, components and other products segment is expected to see significant
quarter-over-quarter growth, supported by an increase in shipments related to
core business operations.
Regarding the
full-year outlook, Chairman Liu indicated the target for strong growth remains
unchanged. However, as operational visibility has improved since the investor
conference in August, the company has raised its outlook across all four major
product segments. Operational performance for the year has consistently
exceeded initial expectations, a trend that is expected to continue into next
year.
Optimistic for 2027, focus on key component supply
and external shifts
Looking ahead to 2027, Chairman Liu stated that,
based on current customer demand, he is confident in continued operational
growth for the coming year. However, he noted that developments within the
supply chain and the broader external environment warrant close attention. At
present, tight supplies of chips, memory, and certain key components pose a
shared challenge for the AI and consumer electronics supply chains. While the
rollout of new production capacity will gradually alleviate these bottlenecks,
overall demand is expected to continue exceeding supply next year, and tight
market conditions may persist for some time.
Furthermore, uncertainties in the global political
and economic landscape – along with inflation, interest rates, and exchange
rate fluctuations – can all impact operating costs, investment decisions, and
supply chain configurations. Chairman Liu emphasized that in the face of such
external shifts, robust corporate management capabilities become even more
critical. He noted that the talent, capital, and supply chain management
expertise that Foxconn has cultivated over the long term serve as a vital foundation
for the Group’s positive outlook on future market prospects.
AI growth is translating into returns
As its AI business grows rapidly, Foxconn continues
to use metrics such as Return on Equity (ROE), operating margin, and EBITDA to
demonstrate the profitability and capital efficiency gains resulting from its
operational expansion. Chairman Liu noted that during the period when product
segments of smart consumer electronics and computing were the primary revenue
drivers, the Group’s ROE generally remained below 10%; however, since cloud and
networking products became the largest source of revenue last year, ROE has
surpassed 11%.
In the first three quarters of this year, the return
on equity (ROE) reached 10.44% – a significant improvement over the same period
last year – bringing the figure closer to the annual target of 12%. Chairman
Liu noted that investments in the AI business are not only driving revenue
growth, but are also yielding increasingly better profitability and capital
efficiency. The Group has already begun discussions regarding a higher ROE
target for the next phase, with the aim of consistently generating superior returns
for shareholders.
Regarding core business profitability, the growth in
operating profit for the first three quarters of both 2024 and 2025 has
consistently outpaced the growth in revenue and gross profit, with the gap
continuing to widen. In the first three quarters of this year, operating profit
increased by 65% year-on-year – a reflection of the Group’s ongoing
improvements in vertical integration, automation, and operational efficiency.
Coupled with the gradual realization of economies of scale, these factors have
driven a strengthening of core profitability.
Chairman Liu noted that, although the increase in
unit selling prices has impacted profit margins, the operating profit margin
for the first three quarters of this year still rose to 3.73% – a significant
improvement over the 3.2% recorded for the full year last year, and a figure
that also exceeds the 3% threshold set by the Group.
Core business cash generation strengthening
As investments in AI infrastructure continue to
expand, Foxconn remains focused on the cash-generating capacity of its core
business. The Group’s EBITDA for 2025 reached nearly NT$357 billion – more than
double the figure recorded in 2020. In the first three quarters of this year,
EBITDA has already surpassed the total for the entire previous year, reaching NT$369.2
billion – an increase of NT$123.6 billion, or 50.3% year-on-year – which
outpaces the 43% growth in capital expenditures over the same period.
Chairman Liu pointed out that the widening gap
between EBITDA and the sum of capital expenditures and cash dividends,
demonstrates that the cash-generating capacity driven by the growth of the AI
business not only supports future capital expenditure requirements and higher
cash dividends, but also further strengthens the company’s financial position,
preserving the flexibility needed for future development.
Regarding capital management, Foxconn adheres to the
principle of "matching long-term funding with long-term investments, and
short-term funding with short-term operational needs" – the latter being
managed flexibly through borrowing and the optimization of the cash conversion
cycle. With a debt-to-equity ratio of approximately 64%, the Group retains
capacity to meet future capital requirements by issuing corporate bonds.
Furthermore, it will employ flexible financing strategies – primarily through
convertible bonds – to ensure a diverse mix of funding currencies while
effectively managing the cost of capital.
About Foxconn
Hon Hai Technology Group (Foxconn) (TWSE:2317) is the
world’s largest electronics manufacturer and leading technology solutions
provider, ranking 23rd in Fortune Global 500. In 2025, revenue totaled TWD8.1
trillion (approx. USD260 billion). The Group’s market share in electronics
manufacturing services (EMS) exceeds 40% and covers four major product
segments: smart consumer electronics; cloud and networking; computing; and
components and other. Operating over 240 campuses across 24 countries, Foxconn
is one of the world’s largest employers with approx. 1 million employees during
peak manufacturing season. We are committed to sustainability in the
manufacturing process and serving as a best-practice model for global
enterprises. The Group is guided by its 3+3+3 strategy, actively investing in
industries of electric vehicles, digital health, and robotics; in technologies
of artificial intelligence, semiconductors and next-generation communications;
in intelligent platforms of Smart Manufacturing, Smart EV and Smart City.
Foxconn is dedicated to becoming a comprehensive, world-class enterprise, with
AI as its core driving force. Learn more at www.foxconn.com/en-us
2026/11/12