Newshot IT Home, November 12 news: Hon Hai today released its report for the first three quarters of fiscal year 2026 (January 2026 to December 2026) (January 2026 to September 2026):
- Total operating revenue: NT$7.66 trillion, up 39.3% year on year
- Gross profit: NT$467.027 billion, up 35.6% year on year
- Gross margin: 6.10%, down 0.17 percentage points year on year
- Net profit attributable to parent company: NT$187.417 billion, up 30.0% year on year
- Basic earnings per share: NT$13.35, up 28.6% year on year
- Debt-to-asset ratio: 64.44%, up 2.14 percentage points quarter on quarter
AI interpretation: Hon Hai Precision's financial performance in the first three quarters of 2026 was strong, with both revenue and net profit attributable to the parent company hitting record highs for the same period in previous years and exceeding market institutional expectations. Main business and financial report highlights: Hon Hai Precision (TWSE: 2317) is one of the world's largest electronics manufacturing services (EMS) providers, with main business covering manufacturing and services in information, communications, consumer electronics, optoelectronics, precision machinery, automotive and AI servers. Cumulative operating revenue for the first three quarters reached NT$7.66 trillion, continuing to benefit from the explosive demand for AI servers and the traditional peak season for consumer smart products. Cumulative net profit attributable to owners of the parent company for the first three quarters reached NT$187.417 billion, with profitability significantly improved. Cumulative gross operating profit for the first three quarters was NT$467.027 billion, corresponding to a gross margin of about 6.1%, reflecting optimized core profitability. Basic earnings per share (cumulative for the first three quarters) were NT$13.35, a substantial increase from NT$10.38 in the same period last year. Total assets at the end of the period reached NT$6.19 trillion, total liabilities reached NT$3.99 trillion, and the debt-to-asset ratio was about 64.44%, up from the end of the second quarter, mainly due to increased capital demand driven by AI business expansion and order intake. Future outlook: Benefiting from continued volume growth of AI racks, the ramp-up of shipments of the new-generation Vera Rubin servers and the traditional peak season for consumer smart products in the second half of the year, the company maintains its unchanged outlook of strong growth for the fourth quarter and the full year 2026. Cloud and networking products (including AI servers) remain the main growth driver, with switches of 800G and above and CPO all-optical switches shipping in mass production as planned. Investment value: With its three-tier core operating model of global layout, vertical integration and high automation, Hon Hai continues to expand its market share in the AI server field, with economies of scale and key components with a high in-house production rate supporting good operating efficiency. Current financial performance resonates with the high prosperity of the AI industry, and the medium- to long-term growth logic is clear, but attention should be paid to the sustainability of AI capital expenditure and the risk of volatility in tech stocks.
AI interpretation
Hon Hai Precision's financial performance in the first three quarters of 2026 was strong, with both revenue and net profit attributable to the parent company hitting record highs for the same period in previous years and exceeding market institutional expectations.
Main business and financial report highlights
Hon Hai Precision (TWSE: 2317) is one of the world's largest electronics manufacturing services (EMS) providers, with main business covering manufacturing and services in information, communications, consumer electronics, optoelectronics, precision machinery, automotive and AI servers.
- Cumulative operating revenue for the first three quarters reached NT$7.66 trillion, continuing to benefit from the explosive demand for AI servers and the traditional peak season for consumer smart products.
- Cumulative net profit attributable to owners of the parent company for the first three quarters reached NT$187.417 billion, with profitability significantly improved.
- Cumulative gross operating profit for the first three quarters was NT$467.027 billion, corresponding to a gross margin of about 6.1%, reflecting optimized core profitability.
- Basic earnings per share (cumulative for the first three quarters) were NT$13.35, a substantial increase from NT$10.38 in the same period last year.
- Total assets at the end of the period reached NT$6.19 trillion, total liabilities reached NT$3.99 trillion, and the debt-to-asset ratio was about 64.44%, up from the end of the second quarter, mainly due to increased capital demand driven by AI business expansion and order intake.
Future outlook
Benefiting from continued volume growth of AI racks, the ramp-up of shipments of the new-generation Vera Rubin servers and the traditional peak season for consumer smart products in the second half of the year, the company maintains its unchanged outlook of strong growth for the fourth quarter and the full year 2026. Cloud and networking products (including AI servers) remain the main growth driver, with switches of 800G and above and CPO all-optical switches shipping in mass production as planned.
Investment value
With its three-tier core operating model of global layout, vertical integration and high automation, Hon Hai continues to expand its market share in the AI server field, with economies of scale and key components with a high in-house production rate supporting good operating efficiency. Current financial performance resonates with the high prosperity of the AI industry, and the medium- to long-term growth logic is clear, but attention should be paid to the sustainability of AI capital expenditure and the risk of volatility in tech stocks.
Related reading:
- "Fujifilm's net profit attributable to parent company in the first half of fiscal year 2027 was 105.226 billion yen, down 12.5% year on year"
- "Hon Hai's net profit attributable to parent company in the first half of fiscal year 2026 was NT$109.893 billion, up 27.09% year on year"
- "Hon Hai's operating revenue in the first fiscal quarter of fiscal year 2026 was NT$2.12 trillion, up 29% year on year"
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