Hon Hai Precision Industry (2317) investor relations material

Executive summary

• Q2 2026 revenue reached NTD 2,525,894 million (NT$2,525.9 billion), up 41% YoY, with H1 2026 revenue at NTD 4,645,428 million (NT$4,645.4 billion), a 35% YoY increase.

• Net profit attributable to owners for Q2 2026 was NTD 59,974 million (NT$59.97 billion), up 35% YoY; H1 2026 net income was NT$109.89 billion, up from NT$86.47 billion.

• Improved product mix, operational scale, and expansion from system solutions to components, liquid cooling, MDCs, and data centers drove strong core earnings growth.

• Gross margin for Q2 2026 was 6.1%, slightly up from 6.3% in Q2 2025; operating margin improved to 3.8% from 3.2% YoY.

Financial highlights

• Operating income for Q2 2026 was NT$94.8 billion, up 25% QoQ and 68% YoY; H1 2026 operating income was NT$170.5 billion, up 65% YoY.

• Basic EPS for Q2 2026 was NT$4.27, up from NT$3.19; H1 2026 EPS was NT$7.84, up from NT$6.23.

• Cash and cash equivalents at June 30, 2026 were NT$963.0 billion, up from NT$870.5 billion at June 30, 2025.

• Total assets at June 30, 2026 were NT$5,622.6 billion; total equity increased to NT$2,119.6 billion.

• 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.

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.

• Ongoing investments in AI servers, electric vehicles, and automation; net gearing targeted below 70%.