Hon Hai Precision Industry (stock code 2317), also known as Foxconn, reported October revenue of 1.31 trillion TWD on November 13, representing a 45.7% year-over-year increase and 12.7% month-over-month growth, marking the highest single-month revenue this year. The company simultaneously upgraded its full-year outlook for all four product categories during its investor conference, driven by strong AI server cabinet shipments and robust demand across cloud/network products. Cumulative revenue for the first ten months reached 8.98 trillion TWD, up 40.4% year-over-year, reflecting Taiwan's leading position in global technology manufacturing and the ongoing shift toward AI infrastructure investments.
Hon Hai Projects Three Product Categories to Grow in Q4 2026
Hon Hai expects three of its four product categories to grow quarter-over-quarter in Q4, with only computer terminals projected to decline. Cloud/network products, which accounted for 54% of Q3 revenue, will see significant quarter-over-quarter growth driven by continued high double-digit growth in AI server cabinet shipments. The company stated that new-generation AI server cabinets began shipping, with production yields reaching high levels as automation increased, and market share for the new generation exceeding the previous generation.
Consumer smart products will enter peak Q4 shipment season with strong demand and higher shipment prices, leading to strong quarter-over-quarter and year-over-year growth. Components and other products will see significant quarter-over-quarter growth due to increased shipments of related components for major businesses.
Computer terminals will experience slight quarter-over-quarter decline as memory and other supply constraints suppress shipment volumes, though rising component prices will drive up shipment prices. Despite reduced volumes, this category still expects significant year-over-year growth. Research firm TrendForce estimated in late September that Q4 general DRAM contract prices will rise 10% to 15% quarter-over-quarter, with potential further supply reduction in 2027 as capacity shifts toward servers.
Company Reports Improved Full-Year Visibility Compared to August
Hon Hai stated that "current visibility is better than at the August investor conference," with full-year operations almost entirely exceeding prior expectations. The company expects this trend to continue into 2027. Q3 cloud/network products reached 54% of revenue, the highest proportion among the four categories.
Q3 AI cabinet shipments already achieved high double-digit quarter-over-quarter growth, with Q4 guidance indicating this growth rate will continue. October's single-month revenue of 1.31 trillion TWD exceeded Q3's monthly average of approximately 1.01 trillion TWD (calculated from Q3 total revenue of 3.02 trillion TWD). For Q4 to surpass Q3, combined November-December revenue must exceed 1.71 trillion TWD.
AI Server Cabinet Shipments Maintain High Double-Digit Growth
Hon Hai confirmed that AI server cabinet shipments maintained high double-digit quarter-over-quarter growth in Q3, with this momentum expected to continue in Q4. The company stated that as automation levels increased, production yields for new-generation AI cabinets reached high standards. Market share for the new-generation AI cabinets also increased compared to the previous generation.
The company projects that Q4 AI cabinet shipment volumes will maintain high double-digit quarter-over-quarter growth, driving continued quarter-over-quarter growth in AI server revenue. General server revenue will see moderate growth, contributing to overall significant quarter-over-quarter and strong year-over-year growth for cloud/network products.
FAQ
What was Hon Hai's October revenue and how did it compare to previous periods?
Hon Hai reported October revenue of 1.31 trillion TWD, up 45.7% year-over-year and 12.7% month-over-month, marking the highest single-month revenue this year. Cumulative revenue for the first ten months reached 8.98 trillion TWD, up 40.4% year-over-year.
Why did Hon Hai upgrade its full-year outlook for all product categories?
Hon Hai upgraded its full-year outlook due to strong AI server cabinet shipments with high double-digit quarter-over-quarter growth, robust demand for cloud/network products which account for 54% of Q3 revenue, and better-than-expected operational performance across all four product categories. The company stated current visibility is better than at the August investor conference.
How are memory supply constraints affecting Hon Hai's computer terminals business?
Memory and other supply constraints are suppressing computer terminal shipment volumes, making it the only product category expected to decline quarter-over-quarter in Q4. However, rising component prices are driving up shipment prices, and the category still expects significant year-over-year growth despite reduced volumes. TrendForce estimated Q4 general DRAM contract prices will rise 10% to 15% quarter-over-quarter.
