• 1Q26 net profit up 19% on-year, operating profit surges 63% on-year• 1Q26 gross margin and operating profit margin both improve on-year• AI demand driving significant QoQ, strong YoY growth for 2Q26• FY 2026 outlook for strong growth unchanged14 May 2026, Taipei, Taiwan – Hon Hai Technology Group (Foxconn) (TWSE:2317) today announced its first quarter 2026 financial results:Revenue reached a record high of NT$2.12 trillion in the January-March period, while net profit attributable to the parent company totaled NT$49.9 billion, increasing NT$7.8 billion or 19% from the same period a year ago. Earnings per share in the first quarter hit NT$3.56. Looking ahead to the second quarter, although it is traditionally a slow season for the ICT industry, the Group expects to maintain an uptrend due to strong AI demand, with significant quarter-on-quarter growth and strong year-on-year growth. The full-year outlook remains unchanged, maintaining strong growth and providing greater visibility.In the first quarter of 2026, revenue reached NT$2.12 trillion, a year-on-year increase of 29%; gross profit was NT$131 billion, up 30%; operating profit was NT$75.6 billion, surging 63%; and net profit (attributable to the parent company's owners) was NT$49.9 billion, rising 19%. The gross profit margin, operating profit margin, and net profit margin were 6.18%, 3.57%, and 2.36%, respectively, compared with 6.11%, 2.83%, and 2.56% in the same period last year, showing an increase in both gross profit margin and operating profit margin. EPS reached NT$3.56, an increase of NT$0.53 compared with NT$3.03 in the same period last year.Faced with sustained, strong demand for the Group’s AI business, Foxconn Rotating CEO Michael Chiang said that with the ICT industry entering the traditional off-season in the first quarter, coupled with rapid growth in AI server demand, the Cloud and Networking product segment now accounts for nearly 50% of revenue. This demonstrates that the Group’s AI strategy has already brought about a structural transformation, helping to mitigate the seasonality of the ICT industry. At the same time, with a more diversified AI customer base, the Group’s product portfolio has become more balanced.Looking ahead to the Group’s second quarter performance, although the quarter is traditionally a slow season for the ICT industry, expectations are for maintaining an uptrend, with significant growth quarter-on-quarter and strong growth year-on-year, thanks to strong AI demand. The full-year outlook for strong growth remains unchanged. Visibility is higher.The Group's main product segments are Cloud and Networking, and Smart Consumer Electronics. In terms of the former, strong growth is expected both on a quarterly and yearly basis. In terms of the latter, with overall demand better than last year, significant growth is expected.During the investor call, the Group shared how it is building a moat through a sound financial constitution, while at the same time expanding investment and spending. Last year, capital expenditures increased about 27% on-year to NT$174 billion, and should rise more than 30% this year. The investments are primarily focused on regional manufacturing deployment, automation implementation, and upgrade of core capacity.Taking the first quarter as an example, the Group’s EBITDA rose to NT$102.4 billion. This indicates that as the Group actively invests in future growth, its overall financial health is staying robust. Capex is gradually translating into revenue and profit growth ahead.In addition, in terms of enhancing corporate value, the Group’s ROE for the first quarter reached 2.88%, representing a clear improvement compared to the same period over the past two years. This reflects ongoing progress in optimizing the Group’s profitability structure and operational efficiency. As AI-related business grows, as well as benefits materialize from a global footprint and vertical integration, there is further upside potential for ROE.Regarding recent market focus on co-packaged optics (CPO), rotating CEO Chiang said that CPO switches are scheduled to enter mass production in the third quarter, with annual shipments expected to reach tens of thousands of units. Based on current visibility, shipments are projected to grow multi-fold next year.CPO and 1.6T high-end switch products are currently being developed and prepared for mass production in cooperation with major cloud and AI data center customers, with shipments expected to begin in the third quarter. In addition to switch design and assembly, the Group continues to strengthen its capabilities in key components such as optical modules, optoelectronic integration, cables, connectors, high-speed transmission, and power management. By increasing the proportion of in-house production and integration, the Group aims to further enhance system performance, delivery efficiency, and supply chain control.For AI rack shipments, the Group expects to keep high double-digit growth in the second quarter. For the full year, AI rack shipments are projected to more than double, with quarterly volumes increasing sequentially as customer projects progress. In the area of high-speed switches above 800G, driven by growing demand for high-speed networking architectures in AI data centers, related product shipments and revenue this year also have the potential to double.In robotics, one of the key areas in the Group’s “3+3+3” strategy, humanoid robots and collaborative robots have already been introduced in US manufacturing sites in the second quarter. Operational data will be collected to support subsequent model optimization and large-scale deployment. In Smart City, the Group continues to deepen collaboration with local governments and partners, while promoting the export of integrated solutions, aiming to replicate successful experiences across more countries and cities.Lastly, in next-generation communications, the second-generation “PEARL” – Foxconn’s low Earth orbit (LEO) satellites – successfully launched on May 3 aboard a SpaceX Falcon 9 rocket, entering their designated orbit.While the first-generation satellites focused on satellite-to-ground communication experiments and system validation, the latest in orbit are equipped with Ka-band inter-satellite link (ISL) payloads. The two satellites will not only enable broadband communication between satellites and ground stations, but also validate inter-satellite communication between each other.Following the successful launch of the second-generation satellites, the Group will continue to accelerate its expansion in the space sector, focusing on diverse application scenarios such as mobile communication supplements, direct-to-device satellite connectivity, and connectivity in remote areas, further expanding opportunities in LEO satellite technology and smart communications integration.

·       Revenuefor4Qandfull year2025 atrecord highs ·       CashdividendofNT$7.2arecord highsincelisting,payoutratio 52.9% ·       AIserversectortoseestronggrowthin 2026 ·       AIiscoredrivingforceinnew5-yeartransformationstrategy 16 March 2026, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its full year and fourth quarter 2025 financial results. Full-year net profit (attributable to the parent company) totaled NT$189.3 billion and EPS of NT$13.61 reached a record high since its listing in 1991. ROE hit 11.25%, further improving overall profitability. The company also announced a cash dividend of NT$7.2 per share this year, a record high since its listing in 1991, representing a payout ratio of 52.9%, marking the seventh consecutive year that the payout ratio has exceeded 50%. Despite significant changes in tariff policies, geopolitics, and global monetary policies, the AI server sector is expected to see strong growth in 2026. At the same time, the Group also unveiled its five-year plan, focusing on AI as the core driver and three major transformation strategies: Foxconn 1.0 – Operational Excellence; Foxconn 2.0 – Intelligence-Driven Growth; and Foxconn 3.0 – Platform Value Creation. Foxconn’s 2025 full-year revenue reached NT$8.1 trillion, a year-on-year increase of 18%; gross profit reached NT$498.2 billion, up 16% for the same period; operating profit at NT$259.2 billion, rose 29% on year; and net profit (attributable to the parent company) reached NT$189.4 billion, increasing 24%. The profit growth rate exceeded the revenue growth rate, representing best practice for maximizing the Group's profitability. Gross profit margin, operating profit margin, and net profit margin were 6.15%, 3.20%, and 2.34% respectively, compared to 6.25%, 2.92%, and 2.23% in the previous year. This shows that although high-priced AI products diluted the gross profit margin, the operating profit margin steadily grew to over 3%, and profitability of the core business benefited significantly from AI products, resulting in EPS reaching NT$13.61, an increase of NT$2.60 from the previous year. In the October-December quarter, revenue totaled NT$2.61 trillion, a 22% increase from the same period a year ago; gross profit at NT$153.3 billion, was up 17% at the same time; operating profit at NT$85.6 billion, rose 33% on-year; while net profit (attributable to the parent company) at NT$45.2 billion, fell 2% from a year ago. Gross profit margin, operating profit margin, and net profit margin were 5.88%, 3.28%, and 1.73%, respectively, compared to 6.15%, 3.03%, and 2.17% for the same period a year ago. The improved operating profit margin indicates enhanced profitability in the core business. EPS reached NT$3.23, down NT$0.11 from the previous year. Looking at the fourth quarter's operating performance, Foxconn Chairman Young Liu stated that both the fourth quarter and the full year saw record-breaking revenue, exceeding expectations and achieving strong growth. The Group's full year revenue reached NT$8.1 trillion, a record high. Notably, revenue from cloud and networking products surpassed that of smart consumer electronics products for the first time even during the traditional peak season for ICT products, becoming the largest product category in the quarter. Based on the Group's target of an average cash dividend payout ratio of no less than 40%, Chairman Liu announced this year's cash dividend per share will be NT$7.2, a significant increase from NT$5.8 per share last year, with a payout ratio of 52.9%, a new high since the company's listing in 1991, and exceeding 50% for seven consecutive years. The market is paying close attention to the Group's performance in cloud and networking products and smart consumer electronics products in 2026. Chairman Liu pointed out that with the unprecedented expansion of capital expenditures by large global CSPs, Foxconn, as the world’s largest AI server provider, will definitely seize this opportunity. As production capacity gradually comes online, AI servers will maintain strong growth. Regarding smart consumer electronics products, addressing market concerns about memory shortages and price increases, Chairman Liu stated that the Group's product portfolio is mainly composed of high-priced models, and the impact is currently observed to be relatively limited. Demand, as originally seen, remains unchanged, and visibility is gradually improving, with significant growth expected this year. Regarding the financial indicators that investors are highly concerned about, Chairman Liu stated that the "Enterprise Value Enhancement Plan" approved by the board of directors Monday incorporates targets such as operating profit margin and ROE into its core commitments in order to actively respond to investors' expectations for improved long-term profitability. ROE has been around 9% in 2023 and 2024. With deeper vertical integration of components, emerging economies of scale, and growing contribution of the AI business, overall profitability further improved in 2025, with ROE reaching 11.25% to steadily move towards a near-term target of 12%. As the global industry stands at the starting point of the new AI era, Foxconn, based on its three-stage transformation plan proposed five years ago – F1.0 Existing Business Optimization, F2.0 Digital Transformation, and F3.0 Transformation To New Industries – is using AI as the core driving force to promote the Group's upgrade through three major transformation strategies: Foxconn 1.0 Operational Excellence; Foxconn 2.0 Intelligence- Driven Growth; and Foxconn 3.0 Platform Value Creation Chairman Liu stated, "Our goal is clear: to transform Foxconn from the world's most important technology manufacturing partner into the most trusted industrial platform in the AI era. This will be the core direction of Foxconn's next stage of growth and the key to continuously creating long-term value for our shareholders."