Strong demand for AI servers! Hon Hai's Q3 net profit increased by 17% year-on-year, exceeding expectations, with revenue growth of 11% | Financial Report Insights

Hon Hai's latest financial report shows that its strategic shift towards the artificial intelligence sector is yielding significant returns. Driven by strong demand for AI servers, the company's net profit in Q3 reached NT$57.67 billion (approximately US$1.89 billion), a year-on-year increase of 17%; revenue grew by 11% year-on-year, in line with analysts' expectations. This marks a successful expansion into new high-growth business areas for the giant known for being an iPhone manufacturer. Chairman Liu Yangwei expressed strong confidence in the AI business during the corporate briefing, predicting "significant growth" in revenue for the fourth quarter both year-on-year and quarter-on-quarter, with this growth momentum expected to continue into next year. However, he also pointed out that tariff policies and exchange rate fluctuations will be key variables affecting future market prospects. On the 12th, Hon Hai announced its Q3 2025 performance: Revenue NT$2.06 trillion, a year-on-year increase of 11%, market estimate NT$2.06 trillion. Net profit NT$57.67 billion, a year-on-year increase of 17%, market estimate NT$50.95 billion. Operating profit NT$70.54 billion, market estimate NT$63.01 billion. Earnings per share NT$4.15, market estimate NT$3.69. Hon Hai Chairman: Very Optimistic About AI Development Prospects in 2026 Chairman Liu Yangwei expressed strong confidence in the AI business during the latest corporate briefing, while also noting that tariff policies and exchange rate fluctuations will be key variables affecting future market prospects. Liu Yangwei provided an optimistic forecast for the company's short-term and medium-term outlook. He stated that revenue in the fourth quarter is expected to achieve "significant growth" both year-on-year and quarter-on-quarter, with this growth momentum likely to continue into next year, and the company holds significant growth expectations for next year's annual performance. Liu Yangwei particularly emphasized that the trend of AI will be the "most important factor" influencing the market next year, and Hon Hai will "secure more AI orders." “Very optimistic about the development prospects of artificial intelligence in 2026, and very confident about the business in 2026. Artificial intelligence will be the most important growth driver for the company in 2026.” Among all business segments, cloud network products represented by AI servers are seen as Hon Hai's most core growth engine for the future. Liu Yangwei stated that this business segment will see "significant quarter-on-quarter growth" in the fourth quarter, with year-on-year growth expected to be even more substantial, reaching a level of "strong growth." Strong Profit Growth, Revenue Meets Expectations, AI Servers Become Key Growth Driver In the first nine months of 2025, Hon Hai's operating profit was NT$173.63 billion, and net profit was NT$144.14 billion. Revenue for the first nine months was NT$5.50 trillion, with earnings per share of NT$10.38. The company expects that fourth-quarter revenue from AI servers will grow quarter-on-quarter. Hon Hai has long been known as the world's largest manufacturer of Apple's iPhone, but in recent years the company has been transitioning into other business areas, including AI. This strategic shift has now become a key driver of its performance growth The company is currently manufacturing server racks for AI workloads and has become an important partner of NVIDIA. With the surge in global demand for computing power, Foxconn's AI server manufacturing business is experiencing strong growth. Ivan Lam, a senior analyst at Counterpoint Research, stated that solid demand supports the rapid development of this business. Currently, Hon Hai is conducting a full-chain layout in the AI industry chain. The company has built complete capabilities from chip design to complete machine assembly while accelerating the localization of the supply chain. By collaborating with domestic storage manufacturers to promote the large-scale application of high-bandwidth memory, it reduces costs and improves delivery efficiency. Recently, Hon Hai reached a strategic cooperation with Delta Electronics to integrate both parties' advantages in AI servers and electromechanical engineering, creating a one-stop data center solution to further consolidate its market position. In addition to the AI server business, as the top assembler of Apple's iPhone, the company benefits from Apple's recent revenue growth trend, combined with the seasonal effect of the ICT product peak in the second half of the year, resulting in a significant rebound in its consumer electronics business, complementing the AI server business. "Profit-seeking" strategy shows significant results, outlook remains optimistic Analysts believe that Hon Hai is leveraging its absolute dominance in the contract manufacturing field to secure current and future orders, which is a clear "profit-seeking" strategy, even if it means sacrificing some orders for consumer electronics products. Ivan Lam pointed out that Hon Hai's transition to the high-growth server manufacturing industry is "clearly paying off," although this requires the company to trade some share of its consumer electronics business for longer-term growth momentum. Looking ahead, although fluctuations in component prices, exchange rate changes, and logistics challenges may put pressure on profit margins, Ivan Lam expects Foxconn's performance in the fourth quarter to "maintain a favorable trend." More news will be updated continuously