Taipei:Hon Hai Precision Industry Co., the Taiwan-based manufacturing giant, has announced a record net profit for the third quarter, reflecting an increase of more than 30 percent compared to the same period last year. This surge is attributed to significant growth in artificial intelligence (AI) server and rack shipments, driven by substantial investment in AI infrastructure.
According to Focus Taiwan, Hon Hai, known globally as Foxconn, reported a net profit of NT$77.52 billion (US$2.35 billion) for the July-September period. This marks a 34 percent increase from a year earlier and a 29 percent rise from the previous quarter. The company's earnings per share (EPS) were NT$5.51, up from NT$4.15 a year ago and NT$4.27 in the second quarter.
In its statement, Hon Hai highlighted its diversification into integrating hardware and software, which contributed to a consolidated revenue of NT$3.02 trillion in the third quarter. This represents a 46 percent increase from the previous year and a 19 percent increase from the prior quarter. The cloud and networking division accounted for 54 percent of the total revenue, up from 51 percent in the previous quarter.
The company's smart electronics, computing, and electronics components divisions contributed 29 percent, 12 percent, and 5 percent of the revenue, respectively, in the third quarter. Despite a slight decline in gross margin to 6.02 percent, the operating margin improved to 3.83 percent, and the net profit margin was 2.57 percent.
Hon Hai's core business, including AI servers and racks, exceeded expectations amid strong global demand for AI applications. Additionally, the smart electronics division experienced significant growth due to peak season effects, coinciding with Apple Inc.'s unveiling of the iPhone 18 series and iPhone Duo in September.
For the first nine months of 2026, Hon Hai's net profit reached NT$187.42 billion, a 30 percent increase from the previous year, with EPS rising to NT$13.35 from NT$10.38 in 2025.
