Hon Hai Precision Industry (2317) investor relations material

Executive summary

• Improved product mix and operational scale drove strong core earnings growth in Q2 2026, with significant YoY and QoQ increases in revenue and profitability.

• Business is extending from system solutions to components, liquid cooling, MDCs, and data centers, with continued global capacity expansion to support AI demand.

Financial highlights

• Q2 2026 revenue reached NTD 2,525,894 million, up 41% YoY and 19% QoQ; gross profit up 18% QoQ and 36% YoY.

• Operating income rose 25% QoQ and 68% YoY; net profit attributable to owners was NTD 59,974 million, up 20% QoQ and 35% YoY.

• H1 2026 revenue grew 35% YoY to NTD 4,645,428 million; operating income up 65% YoY.

• ROE for H1 2026 reached 6.21%, up from 5.48% YoY; operating profit margin for H1 2026 was 3.67%, exceeding the 3% target.

• EBITDA for H1 2026 continued to grow, balancing CAPEX and dividend distribution.

Outlook and guidance

• 3Q26 expected to see significant QoQ and strong YoY growth, with a robust full-year outlook.

• Cloud and networking, smart consumer electronics, and computing products all forecasted to grow YoY and QoQ in 3Q26 and FY26.

• AI infrastructure and server demand expected to drive growth throughout the year, with AI rack shipments and revenue increasing sharply in 3Q26.