Hon Hai Technology Group (Foxconn) announced its full year and fourth quarter 2025 financial results.
Full-year net profit (attributable to the parent company) totaled NT$189.3 billion and EPS of NT$13.61 reached a record high since its listing in 1991. ROE hit 11.25%, further improving overall profitability. The company also announced a cash dividend of NT$7.2 per share this year, a record high since its listing in 1991, representing a payout ratio of 52.9%, marking the seventh consecutive year that the payout ratio has exceeded 50%.
Despite significant changes in tariff policies, geopolitics, and global monetary policies, the AI server sector is expected to see strong growth in 2026. At the same time, the Group also unveiled its five-year plan, focusing on AI as the core driver and three major transformation strategies: Foxconn 1.0 – Operational Excellence; Foxconn 2.0 – Intelligence-Driven Growth; and Foxconn 3.0 – Platform Value Creation.
Foxconn’s 2025 full-year revenue reached NT$8.1 trillion, a year-on-year increase of 18%; gross profit reached NT$498.2 billion, up 16% for the same period; operating profit at NT$259.2 billion, rose 29% on year; and net profit (attributable to the parent company) reached NT$189.4 billion, increasing 24%. The profit growth rate exceeded the revenue growth rate, representing best practice for maximizing the Group's profitability. Gross profit margin, operating profit margin, and net profit margin were 6.15%, 3.20%, and 2.34% respectively, compared to 6.25%, 2.92%, and 2.23% in the previous year. This shows that although high-priced AI products diluted the gross profit margin, the operating profit margin steadily grew to over 3%, and profitability of the core business benefited significantly from AI products, resulting in EPS reaching NT$13.61, an increase of NT$2.60 from the previous year.
In the October-December quarter, revenue totaled NT$2.61 trillion, a 22% increase from the same period a year ago; gross profit at NT$153.3 billion, was up 17% at the same time; operating profit at NT$85.6 billion, rose 33% on-year; while net profit (attributable to the parent company) at NT$45.2 billion, fell 2% from a year ago. Gross profit margin, operating profit margin, and net profit margin were 5.88%, 3.28%, and 1.73%, respectively, compared to 6.15%, 3.03%, and 2.17% for the same period a year ago. The improved operating profit margin indicates enhanced profitability in the core business. EPS reached NT$3.23, down NT$0.11 from the previous year.
Looking at the fourth quarter's operating performance, Foxconn Chairman Young Liu stated that both the fourth quarter and the full year saw record-breaking revenue, exceeding expectations and achieving strong growth. The Group's full year revenue reached NT$8.1 trillion, a record high.
Notably, revenue from cloud and networking products surpassed that of smart consumer electronics products for the first time even during the traditional peak season for ICT products, becoming the largest product category in the quarter.
Based on the Group's target of an average cash dividend payout ratio of no less than 40%, Chairman Liu announced this year's cash dividend per share will be NT$7.2, a significant increase from NT$5.8 per share last year, with a payout ratio of 52.9%, a new high since the company's listing in 1991, and exceeding 50% for seven consecutive years.
The market is paying close attention to the Group's performance in cloud and networking products and smart consumer electronics products in 2026. Chairman Liu pointed out that with the unprecedented expansion of capital expenditures by large global CSPs, Foxconn, as the world’s largest AI server provider, will definitely seize this opportunity. As production capacity gradually comes online, AI servers will maintain strong growth.
Regarding smart consumer electronics products, addressing market concerns about memory shortages and price increases, Chairman Liu stated that the Group's product portfolio is mainly composed of high-priced models, and the impact is currently observed to be relatively limited. Demand, as originally seen, remains unchanged, and visibility is gradually improving, with significant growth expected this year.
Regarding the financial indicators that investors are highly concerned about, Chairman Liu stated that the "Enterprise Value Enhancement Plan" approved by the board of directors Monday incorporates targets such as operating profit margin and ROE into its core commitments in order to actively respond to investors' expectations for improved long-term profitability. ROE has been around 9% in 2023 and 2024. With deeper vertical integration of components, emerging economies of scale, and growing contribution of the AI business, overall profitability further improved in 2025, with ROE reaching 11.25% to steadily move towards a near-term target of 12%.
As the global industry stands at the starting point of the new AI era, Foxconn, based on its three-stage transformation plan proposed five years ago – F1.0 Existing Business Optimization, F2.0 Digital Transformation, and F3.0 Transformation To New Industries – is using AI as the core driving force to promote the Group's upgrade through three major transformation strategies: Foxconn 1.0 Operational Excellence; Foxconn 2.0 Intelligence- Driven Growth; and Foxconn 3.0 Platform Value Creation
Chairman Liu stated, "Our goal is clear: to transform Foxconn from the world's most important technology manufacturing partner into the most trusted industrial platform in the AI era. This will be the core direction of Foxconn's next stage of growth and the key to continuously creating long-term value for our shareholders."
