Hon Hai Precision Industry (2317) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue reached NT$2,119.5 billion, up 29% year-over-year but down 19% sequentially from Q4 FY25.

• Net profit attributable to owners was NT$49.9 billion, a 19% increase year-over-year and 10% sequentially.

• Earnings per share rose to NT$3.56, up 17% year-over-year and 10% sequentially.

• Operating profit rose 63% year-over-year to NT$75.6 billion, driven by higher sales and improved cost control.

• Total comprehensive income reached NT$113.0 billion, reflecting strong foreign currency translation gains.

Financial highlights

• Gross profit margin improved to 6.18%, up 30 bps year-over-year and 6 bps sequentially.

• Operating profit margin increased to 3.57%, up 74 bps year-over-year and 29 bps sequentially.

• ROE for Q1 FY26 was 2.88%, up 39 bps year-over-year.

• Free cash flow for Q1 FY26 was negative NT$35,774 million, compared to negative NT$43,835 million in Q1 FY25.

• Cash and cash equivalents at period end: NT$986.3 billion.

Outlook and guidance

• 2Q26 expects growth in cloud and networking, smart consumer electronics, and computing products both sequentially and year-over-year.

• FY26 guidance indicates continued year-over-year growth across all major product segments.

• The Board proposed a cash dividend of NT$7.2 per share for 2025 earnings, pending shareholder approval.

• The company aims to maintain a gearing ratio at or below 70% and continue optimizing capital structure.

• New bond issuances and convertible bonds planned for 2026 to support growth and liquidity.