Benefiting from the surge in AI spending! Hon Hai's Q2 revenue increased by 16% year-on-year, and net profit grew by 27% year-on-year, exceeding expectations | Financial Report Insights

The growth in AI demand offsets the sluggish consumer electronics market, with Hon Hai Precision's net profit in the second quarter soaring by 27%, exceeding market expectations.

On Thursday, Hon Hai Precision announced its financial report for the second quarter and the first half of 2025. Key points are as follows:

Second Quarter Performance

• Net profit was NT$44.36 billion, a year-on-year increase of 27%, with market expectations at NT$36.14 billion (Bloomberg consensus)

• Operating profit was NT$56.60 billion, a year-on-year increase of 27%, with market expectations at NT$50.49 billion

• Earnings per share (EPS) were NT$3.19, compared to NT$2.53 in the same period last year, with market expectations at NT$2.79

• Revenue was NT$1.79 trillion, a year-on-year increase of 16%, with market expectations at NT$1.79 trillion

First Half Performance

• Net profit was NT$86.47 billion

• Revenue was NT$3.44 trillion

• Operating profit was NT$103.1 billion

• Earnings per share (EPS) were NT$6.23

Hon Hai is dealing with sudden and unpredictable geopolitical crises while striving to diversify its manufacturing layout. In May of this year, the company lowered its full-year revenue guidance, citing potential impacts from the trade war. Trump has announced plans to impose a 100% tariff on semiconductor imports but promised exemptions for companies that move production to the United States.

Hon Hai produces most of Apple's iPhones, but the current global economic slowdown has left consumer demand weak.

Hon Hai derives a significant portion of its revenue from Apple; however, AI servers have quickly become its main growth driver. The company stated that while overall revenue will still grow in 2025, the growth rate will be lower than previously expected.

The appreciation of the New Taiwan Dollar is also dragging down Hon Hai's financial performance. Company executives estimate that for every 1 NT$ appreciation against the US dollar in the annual average exchange rate, Hon Hai's revenue will decrease by about 3%.

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