At a glance. The year cloud and networking became Foxconn's largest segment. For the 800V question the call still never named the voltage. What it did name is the rack factory: about 40% share of AI servers, 2,000 racks a week of capacity in 2026, and a doubling of both NVIDIA-class cabinets and ASIC cabinets — with analysts asking about TPU and getting ASIC back.
What changed this quarter
Cloud and networking passed consumer electronics, at 40% versus 38%. That is the structural break the earlier notes were waiting for.
AI racks were guided to double in 2026, and ASIC servers were guided to double as well. Management sized the GPU-versus-ASIC market at roughly 8:2 and said its own mix would trend toward the same split.
The site count jumped to 241, from 133 five years earlier, with the United States framed as the future largest AI-server production base.
The numbers
| FY 2025 | Value | Change |
|---|---|---|
| Revenue | NT$8.1tn (~US$257bn) | +18% YoY |
| Operating profit | NT$259.2bn (~US$8.2bn) | +29% YoY |
| Net income | NT$189.4bn (~US$6.0bn) | +24% YoY |
| EPS | NT$13.61 (~US$0.43) | record |
| Gross margin | 6.15% | −11bps |
| Operating margin | 3.20% | +27bps |
| Net margin | 2.34% | +11bps |
| ROE | 11.25% | +1.55pp |
Q4 2025: revenue NT$2.61tn (~US$83bn), +22% YoY and +27% QoQ; EPS NT$3.23; gross margin 5.88% on a heavier mix of semi-finished server product; operating margin 3.28%; net margin 1.73% after a higher tax charge on subsidiary profit repatriation.
Segment mix: cloud and networking 40%, consumer electronics 38%, computing 15%, components 7%.
Cash dividend NT$7.2 per share, a 52.9% payout — a seventh consecutive year above 50%. Capex was NT$173.8bn (~US$5.5bn), +27%. Operating cash inflow NT$226.9bn; free cash flow NT$53.1bn.
NVIDIA 800V read-through
No 800 V, no HVDC, no Kyber. The generation on the table is the current NVIDIA rack and the CSP ASIC rack, not the 2027 800 VDC cabinet.
The 800V-relevant facts are still the ones Foxconn has been repeating since 2024, now with 2026 numbers attached:
- Self-made content keeps rising on the high-value rack subsystems — GPU modules, high-speed switches, liquid cooling — even though much of that internal CMM never shows up in reported components revenue.
- Capacity is 2,000 racks a week in 2026, with actual shipments gated by materials, not by Foxconn's floor space.
- SiC remains an EV-first story in this call: automotive power semiconductors and next-generation packaging for AI servers, not a named 800 VDC module.
Analysts asked how deeply Foxconn is in TPU projects. Management would not name a customer. It said it has worked ASIC servers with the major North American CSPs for years, and that ASIC revenue would double again in 2026.
Segments that moved
Cloud and networking at 40% is now the largest piece, on CSP AI-infrastructure spend, with 2026 guided to strong growth and AI-rack shipments to more than double.
Consumer electronics at 38% was steady. 2026 is guided to significant growth on stable high-end demand and a new-product cycle that should smooth seasonality.
Computing at 15% shrank in 2025 and is guided roughly flat in 2026 on tight memory and modest PC demand.
Components and others at 7% grew. 2026 is still guided to growth, with the caveat that a large share is internal supply and does not lift consolidated revenue one-for-one.
Guidance
- Q1 2026: seasonality better than the prior five years; strong growth year on year. Cloud sequential decline because some buy-and-sell business is moving to consignment, still strong year on year.
- Full year 2026: strong growth. Cloud strong; consumer significant; computing roughly flat; components growing.
- Capex: more than 30% above 2025, for regional manufacturing and core capacity.
- Tax rate: 24–26%, up from about 20%, on CFC rules, Pillar 2, and repatriation.
- Operating margin: hold 3% even as high-ASP AI racks dilute the percentage under buy-and-sell. ROE still aimed at 12%.
Management Q&A
Q: How durable is the AI-server upcycle, and what is the share target?
A: AI-rack shipments are expected to double this year and to rise every quarter through year-end, with visibility stretching several years on North American CSP relationships, higher CSP capex and sovereign projects. Major customers see the AI industry possibly reaching US$1tn in two to three years. AI-server share is already 40% through long-standing work with the main GPU and ASIC chip vendors, and each new generation is meant to add CSP accounts and lift that share further.
Q: 2026 is described as a good year — what are the operating challenges and how is Foxconn preparing?
A: The largest external risk cited is global geopolitics, especially war in the Middle East, and the answer is the global footprint built over five years, from 133 sites to 241, which gives regional and local capacity when shocks hit. Internally, the test is whether group capability can keep up with generative AI and robotics — both are five-year-plan priorities, with heavy resource committed so Foxconn stays a leader in AI applications.
Q: What is the 2026 capex outlook, how will capital be used, and how does buy-and-sell affect returns?
A: 2026 capex is still described as a peak year and may rise more than 30% versus 2025, focused on regional manufacturing, automation and core capacity, matched to the growth of CSP demand. Buy-and-sell does raise working capital and can weigh on returns when prices lift inventory and receivables, but it also scales sales and profit; Foxconn will mix buy-and-sell with consignment by customer, keep short funding against short assets, and still aims for ROE to rise if net income outruns equity growth.
Q: Does AI-rack standardisation help or hurt Foxconn, and how should GPU versus ASIC growth be read?
A: Standardisation is described as inevitable once complexity rises: it shortens the chip-to-system cycle, lifts factory efficiency and, for a scaled global manufacturer, improves turnover and capital returns, while competition concentrates toward the leaders. Even as racks standardise, higher compute and power density is making liquid cooling mainstream and lifting the ASP of high-value parts. On chips, as North American CSPs expand inference, ASIC mix should rise; allowing for chip-price differences, the GPU/ASIC market is put at about 8:2, and Foxconn's own mix is expected to converge on that.
Q: Why is 2026 components guidance only flattish, and how far has AI-server vertical integration gone?
A: Reported components sales look flat because a large share of critical CMM is supplied internally and never fully hits consolidated revenue, even as unit volume rises. Foxconn is a core NVIDIA manufacturing and system-integration partner on GPU modules, compute boards, SuperNICs/DPUs, switch trays and compute trays, and has already put CDU, busbar, midplane, manifold, cold plate and UQD solutions into volume at major accounts; self-made content, including liquid-cooling parts, is meant to keep rising, with some external buy kept for supply-chain resilience. Asked when Vera Rubin components start to ship, the chairman declined a month and pointed to Jensen and the GTC floor.
Q: When can weekly AI-server capacity reach 2,000 racks, and how involved is Foxconn in TPU?
A: Reaching 2,000 racks a week of capacity in 2026 is described as not a problem, especially as the United States is being built into the largest AI-server plant; actual shipments still depend on materials, and the pace can wobble with each generation's design. Foxconn would not comment on a single TPU customer, but said it has built ASIC servers with the major North American CSPs for years across components, boards and whole racks, liquid-cooled ASIC programmes start in 2026, and ASIC-server revenue is still guided to double in 2026 after more than doubling in 2025.
Q: Why was year-end 2025 inventory up more than 30%, what tax rate should be used for 2026, and is consumer-electronics growth volume or price?
A: Inventory dollars were up more than 30%, but days were little changed because sales also jumped; most stock sits under customer contracts with end-of-life buyback, so risk is described as controllable, and consignment can be used to cut the book when needed. The going-forward tax rate is 24–26%, up from about 20%, on Taiwan CFC rules, Pillar 2 and overseas-earnings repatriation. Consumer-electronics growth is mainly units, with some ASP help, and new-product launches are smoothing seasonality.
Q: What is the 2025 dividend plan?
A: The cash-payout policy stated in 2019 was no less than 40%; actual payouts have exceeded 50% for six years. On EPS of NT$13.61, a record, the board set cash of NT$7.2 a share, above last year's NT$5.8, for a 52.9% payout — a seventh year above 50%.
Disclaimer
English notes on Hon Hai Precision Industry's investor conference of 16 March 2026, covering FY 2025 and Q4 2025. Figures are as presented by management and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.