Hon Hai Technology Group (Foxconn) Announces Second Quarter 2026 Financial Results
·
2Q26 revenue, operating profit,
net profit all at record highs for same period
·
3Q26 to see strong YoY growth,
significant QoQ growth
·
Solid gains in 3Q26 for cloud
and networking & smart consumer electronics
·
2027 demand for AI production
capacity to stay very strong
·
Capex to grow in US, including Texas,
Wisconsin, Ohio, California
·
Electromobility new business
gaining ground in New Zealand, Poland, Saudi Arabia--12 August 2026, Taipei, Taiwan – Hon Hai Technology Group (Foxconn) (TWSE:2317) today announced its second
quarter 2026 financial results.
Revenue in the April-June quarter reached NT$2.53
trillion, that alongside operating profit and net profit, all set new second-quarter
records. Net profit for the quarter was NT$60 billion, and earnings per share
reached NT$4.27. Looking ahead to the third quarter, the traditional peak
season, operations are expected to gradually pick up. Overall, the
July-September quarter is expected to see significant quarter-on-quarter growth
and strong year-on-year growth. For the full year 2026, thanks to strong demand
for AI servers and growth in smart consumer electronics, the outlook for strong
growth remains unchanged.
In the second quarter, revenue reached NT$2.53
trillion, up 41% on year; at the same time, gross profit was NT$154.5 billion,
rising 36%; operating profit at NT$94.8 billion, increased 68%; and net profit
(attributable to the parent company's owners) was NT$60 billion, gaining 35% on
year. Gross profit margin, operating profit margin, and net profit margin were
6.12%, 3.75%, and 2.37%, respectively. EPS reached NT$4.27, an increase of
NT$1.08 compared to NT$3.19 in the same period last year. Revenue, operating
profit, and net profit all reached record highs for the same quarterly period.
In the first half of 2026, revenue reached NT$4.65
trillion, increasing 35% from a year ago; at the same time, gross profit was
NT$285.5 billion, up 33%; operating profit was NT$170.5 billion, jumping 65%;
and net profit was NT$109.9 billion, rising 27%. Gross profit margin, operating
profit margin, and net profit margin were 6.15%, 3.67%, and 2.37%,
respectively. EPS reached NT$7.84, an increase of NT$1.61 compared to NT$6.23
in the same period last year. Revenue, operating profit, and net profit all
reached record highs for the first half of the year.
Amid significant market interest regarding the mass
production progress of AI and smart consumer electronics products for key
clients, Foxconn Rotating CEO Michael Chiang stated the Group is seeing
sustained volume growth in AI server racks driven by continued capital
expenditure expansion among cloud service providers (CSP). Cloud and networking
products are projected for strong growth in the third quarter, with high
double-digit increases both on-quarter and on-year. For the same period,
revenue for smart consumer electronics, given traditional peak season in the
second half of the year, is expected to show significant growth
sequentially in the July-September quarter and compared to a year ago.
As Foxconn continues to expand its
market share in AI server racks, Chiang said Foxconn's advantage in AI lies in
providing complete, end-to-end system solutions, rather than just single
products. With Vera Rubin (VR) racks entering mass production in the third
quarter, overall AI server rack revenue is expected to increase
quarter-on-quarter, and shipments are projected to achieve high double-digit
growth. For the full year this year, AI rack shipments are also expected to
more than double. Shipments of high-performance networking products are moving
ahead and full-year revenue from 800G and higher switches is expected to
double, while co-packaged optics (CPO) all-optical switches are on track for
mass production and shipment in the third quarter.
Foxconn’s sustained strength in operational performance comes down
to its global footprint and economies of scale, said Chiang. With more than 240
sites in 24 countries, and longstanding, deep development
of vertically integrated and highly automated operations, alongside a high
in-house production ratio of key components, the Group is able to maintain
sound operating efficiency and yields in the face of high unit price and highly
complex AI products. Taking an example, he said, currently the Group’s automation
rates of processes in computer numerical control (CNC) and surface mount
technology (SMT) are close to 100%. Ultimately, it is the collaboration with top-tier customers to develop
products, focusing on forward-looking and proprietary technologies, increasing
the proportion of high-value-added products, that drives Foxconn's
transformation into a technology manufacturing platform service provider.
On the subject of the Group’s cash flow supporting its huge
operations and mass production work, Chiang said AI has brought significant benefits to Foxconn's financial
performance. Investment expansion and order intake in the
first half of this year has led to capital expenditure growing 5% on year to
NT$80.9 billion, and net interest expense increasing by NT$6.6 billion
annually. However, he pointed out that well-outpacing the spending and interest
expense was a bigger 52% year-on-year
jump in adjusted EBITDA in the first half, making clear a healthier cash flow. In
the January-June period this year, adjusted EBITDA reached NT$227.7 billion, up
by NT$77.6 billion.
Regarding the ROE and operating profit
margin indicators, Chiang stated the ROE for the first half of this year
reached 6.21%, an increase of 0.73 percentage point compared to the same period
last year, reaching half of the Group's 12% target, with further room for
improvement. Operating profit margin – at 3.67% in the January-June period,
improving 0.67 percentage point year-on-year – not only met the Group's 3%
target, but should also exceed last year's full-year level of 3.2%.
Looking ahead to next year, Chiang said customer demand for AI
production capacity will still be very strong. Foxconn’s capex will continue to
increase in locations including Taiwan, the United States, Mexico and Vietnam;
among sites, in response to American localization needs, Texas, Wisconsin, Ohio
and California will see build up in R&D and
manufacturing capabilities. The Group currently has no plans for direct equity
financing and will maintain a sound capital structure to meet future
operational and expansion needs.
Among
positive developments in new business areas, Japan’s Mitsubishi Motors in New
Zealand recently officially confirmed EV models under partnership, with Chiang
noting vehicle deliveries starting in the second half of this year. In Europe,
work with state-backed ElectroMobility
Poland (EMP) is continuing to advance, while in MENA,
production is expected to officially start in the fourth quarter for the joint
venture in EV charging infrastructure in Saudi Arabia. Meanwhile, at home,
delivery began in July for new car model CAVIRA based on the MODEL C, and the
new Kaohsiung factory also started mass production of MODEL T and electric bus
batteries.
In a
call out for October, Hon Hai Tech Day 2026 this year will be held October
30-31. In its 7th year, Foxconn’s flagship show will take place at
an unprecedented scale, combining the first and fourth floors of Taipei Nangang
Exhibition Center, Hall 1, to demonstrate the Group’s latest technological
achievements from its three major smart platforms and deep integration of AI.
New product reveals are planned. The two-day annual conference will launch for
the first time a family-friendly pavilion for children to explore cool zones
and dream jobs related to technology. Free entry on the second day, hands-on
exploratory themes for the young include sustainability, mobility, smart
factory and smart city. Foxconn sincerely invites one and all to come!
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. 900,000 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
2026/08/12