·      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 optimistic

12 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