Hon Hai Technology Group (Foxconn) Announces Third Quarter 2025 Financial Results
·
3Q25 gross, operating, net
profits all at record highs for period
·
4Q25 to see significant growth
QoQ and YoY
·
Cloud & networking is
growth driver; smart consumer electronics improves outlook
·
Maintains significant growth
view for FY 2025; outlook for 2026 is optimistic12 November 2025, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its
third quarter 2025 financial results.
Revenue and profit – on a gross, operating and net
basis – for the third quarter and the first three quarters of this year all
reached record highs for their same periods. Earnings per share of NT$4.15 and
NT$10.38, respectively, both showed significant growth compared to the same
respective periods last year. Looking ahead to the final quarter of 2025,
significant growth is seen on-quarter and on-year. The company maintained its
significant growth target for the full year, while offering for the first time,
optimism about performance in 2026.
In the July-September period, revenue reached NT$2.06
trillion, a year-on-year increase of 11%. Gross profit reached NT$130.8
billion, up 14% for the same period; operating profit at NT$70.5 billion, rose
29%; while net profit (attributable to the parent company's owners) was NT$57.7
billion, climbing 17% at the same time. Compared to the second quarter,
across-the-board on-quarter gains were a respective 15%, 15%, 25%, and 30% for
revenue, gross profit, operating profit and net profit. Quarterly EPS of NT$4.15,
was up NT$0.6 from NT$3.55 in the same period last year, and an increase of
NT$0.96 from the second quarter. Gross margin, operating profit margin, net
profit margin reached a respective 6.35%, 3.43%, 2.80%, also improving
across-the-board compared to the same period last year.
In the January-September period, cumulative revenue
reached NT$5.5 trillion, a year-on-year increase of 16%. Gross profit at
NT$344.8 billion, rose 16% for the same period; operating profit at NT$173.6
billion, jumped a higher 28%; and net profit was NT$144.1 billion, up 35% for
the same period. Gross profit margin, operating profit margin, net profit
margin reached 6.27%, 3.16%, 2.62%, respectively, indicating improved
profitability in the core business. EPS for the first three quarters of this
year reached NT$10.38, an increase of NT$2.71 compared to NT$7.67 in the same
period last year.
Looking ahead to the fourth quarter, the company is
optimistic about the performance of AI and smart consumer electronics, which
are expected to show significant growth momentum both quarter-on-quarter and
year-on-year. Regarding the full-year outlook for 2025, Foxconn Chairman Young
Liu stated that he maintains his view of significant growth for the full year,
but revised upwards the full-year outlook for smart consumer electronics
products to flat from a previous view for a slight decline. Among the four major
product categories, cloud and networking products remain the main growth driver
this year.
Looking ahead to 2026, Chairman Liu offered a very optimistic
outlook. He pointed out the development of the AI industry, the political and
economic situation, and monetary policy will be the most important influencing
factors next year – the development of the AI industry being the most positive
and crucial. The company is optimistic about the AI field, expecting closer
collaboration with major customers, expansion into more diverse AI solutions,
and securing more orders. Regarding the traditional ICT industry, he is
cautiously optimistic, noting that in addition to stable business, there is
potential demand for upgrades and new product development.
Regarding how Foxconn can continue to achieve success
in the emerging AI industry, Chairman Liu stated that EMS is an industry that
combines technology, capital, labor, and management skills for competition. The
industry is ever-changing and customers’ new products are constantly evolving,
Foxconn consistently provides customers five core values – speed, quality,
engineering services, flexibility, and cost. Through these values, the company
assists customers to achieve rapid market entry, quickly meet cost targets, and
promptly grasp technological innovations to create competitive products during the
product development and mass production stages. As long as high-tech products
have these requirements, Foxconn can leverage its strengths.
Chairman Liu emphasized that Foxconn's past
competitive advantages in scale, automation, global footprint, vertical
integration, and R&D technology have led to its success in the ICT
industry. Now, it will extend these advantages to the AI and EV industries,
becoming an indispensable partner for its customers. In the future, for any new
products, whether in AI servers, electric vehicles, robotics, or even the
aerospace field, Foxconn will be the preferred partner for its customers.
Discussing the Group’s “three-pillar” operational
performance, Chairman Liu said from a product portfolio view, the move into
traditional peak season for ICT products has led to the proportion of Smart
Consumer Electronics rising from 35% to 37%, marking the largest degree of
increase when compared to the earlier quarter. Meanwhile, strong growth in AI
servers lifted the share of Cloud and Networking Products from 41% in the
previous quarter to 42%, keeping it as the largest contributor to overall
revenue.
Foxconn Spokesperson James Wu stated that the AI
industry continues to expand at a rapid pace, driven by strong computing power
demand and the mass production of next-generation AI server racks.
Third-quarter AI server rack shipments grew 300% quarter-on-quarter, enabling
cumulative AI server revenue to reach the “NT trillion-dollar scale” ahead of
schedule. Looking to the fourth quarter, shipments of next-generation AI server
racks are expected to sustain double-digit sequential growth. According to
market projections, the top five U.S. cloud service providers (CSPs) are
expected to invest nearly US$600 billion in capital expenditure in 2026,
underscoring the continued strength of AI server demand.
Currently, Foxconn maintains deep partnerships with
leading CSPs in North America, having expanded its AI server rack product line
from GPU-based to ASIC-based solutions. Beyond CSPs, the Group is also
participating in sovereign AI initiatives in the United States, Taiwan, and
Japan. Foxconn anticipates its AI server market share to rise above the current
40% level in 2026. The company, which is collaborating with NVIDIA to build a
supercomputing center, has become the first NVIDIA Cloud Partner (NCP) in Taiwan,
providing computing resources to industry, government and academia, solidifying
its leadership as a pioneer in sovereign AI.
Regarding the second pillar of Smart Consumer
Electronics, Chairman Liu said the business is entering fourth-quarter peak
shipment season, with strong growth expected on a sequential basis. Based on
current visibility, shipment momentum is projected to outpace last year’s
levels.
Regarding EVs, the third operational pillar, Chairman
Liu noted the global automotive industry is approaching an “outsourcing breaking
point,” similar to the evolution of PCs in the 1990s, when the industry shifted
to professional specialization.
Traditionally, automakers have relied on a vertically
integrated manufacturing model. However, rising cost pressures and intensifying
competition are prompting a gradual shift toward specialized manufacturing
services. Foxconn possesses advantages with its Contract Design and
Manufacturing Service (CDMS) model and expects a significant increase in
opportunities for outsourced manufacturing and design services.
Among recent developments, Foxconn has brought in
Mitsubishi Fuso as its second Japanese automaker customer. The two companies
will jointly develop zero-emission buses based on the MODEL T and MODEL U
platforms, expanding into international markets. Meanwhile, Foxconn is
collaborating with Stellantis, NVIDIA, and Uber on Level 4 autonomous driving
technologies, for which Foxconn is responsible for hardware-software
integration.
In addition, subsidiary FIT's joint venture with
Saudi Arabia, Smart Mobility, is expected to start construction on an EV
charging station manufacturing base in the Middle East before the end of the
year, with production starting as early as 2026.
Lastly, Hon Hai Tech Day (HHTD25), Foxconn’s flagship
annual technology conference, will be held November 21-22 at Taipei Nangang
Exhibition Center with the second day open and free to the public. This year’s
theme, “Comprehensive AI integration
across Hon Hai (Foxconn)'s three smart platforms,” will highlight nine areas
– including AI factory, robotics, and semiconductors – demonstrating the
Group’s vertical integration and “3+3+3” transformation strategy.
For the first time, the event will feature a
dedicated mobile app integrating registration, navigation, and interactive
functions. China Airlines has created a unique VIP Lounge, providing guests
with a digital and immersive experience.
About Foxconn
Established
in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (TWSE:2317) is the
world’s largest electronics manufacturer and leading technological solutions
provider, ranking 28th among the Fortune Global 500. In 2024, revenue totaled
TWD6.86 trillion (approx. USD208 billion). The Group’s market share in
electronics manufacturing services (EMS) exceeds 40%. The Group operates over
230 campuses across 24 countries and is one of the world’s largest employers
with approx. 900,000 employees during peak manufacturing season. The Group has
expanded its capabilities into the development of electric vehicles, digital
health, and robotics, and three key technologies – artificial intelligence,
semiconductors and next-generation communications technology. Pulling it
together with its three intelligent platforms – Smart Manufacturing, Smart EV,
Smart City – the “3+3+3” strategy is key to driving the Group’s long-term
growth. Foxconn is dedicated to championing environmental sustainability in the
manufacturing process and serving as a best-practice model for global
enterprises. To learn more, visit www.honhai.com
2025/11/12