TAIPEI, Nov. 12 — Hon Hai Technology Group's cloud and networking business supplied more than half of third-quarter revenue as AI server demand helped push the Taiwanese manufacturer's quarterly profit to a record.
For the three months ended Sept. 30, profit attributable to parent-company owners totaled NT$77.5 billion, up 34% from a year earlier and 29% from the second quarter. Hon Hai said it was the highest quarterly result in its history. Revenue grew 46% to NT$3.02 trillion. Gross profit rose 39% to NT$181.5 billion, operating profit increased 64% to NT$115.4 billion, and earnings per share were NT$5.51.
Cloud and networking accounted for 54% of sales. Smart electronics made up 29%, computing 12%, and components and other products 5%. Hon Hai said AI server demand supported expansion in its largest segment.
Profit margins moved in different directions. Gross margin came to 6.02%, 0.33 percentage points below the year-earlier level, while operating margin advanced 0.40 points to 3.83%. Chief Financial Officer David Huang linked the gross-margin decline to product mix and rising costs for key components. He said operating margin benefited from scale economies and a lower expense ratio.
Hon Hai expects revenue to increase strongly in the fourth quarter compared with both the prior quarter and a year earlier. It also improved its expectations across all four main product groups. The company expects its next-generation AI server racks to help lift AI server revenue sequentially. Tight memory availability may result in a slight sequential drop in computing revenue.
For the first nine months of 2026, profit attributable to parent-company owners reached NT$187.4 billion, up 30% from a year earlier. Earnings per share for the period were NT$13.35, compared with NT$10.38 in the same period of 2025.
EconoTimes previously reported on Hon Hai's record quarterly profit and AI server demand. The company's event calendar schedules its unaudited consolidated November revenue release for Dec. 5.