W.022Hon Hai sold NT$1.31T in October, 46% more than a year ago. Its cloud business dipped from September
Hon Hai’s October sales were about NT$1.31T, up 45.7% from a year earlier and 12.7% from September, its second month above NT$1 trillion. Its cloud and networking segment, which holds its AI servers, slipped from September, which the company put partly down to customers moving to a consignment model. If the about 30% quarterly growth analysts expect, per Bloomberg, is on a year earlier, November and December would average about NT$1.04 trillion, 20% below October.
What Hon Hai reported
October was Hon Hai’s largest month on record. Sales were NT$1.3053 trillion, China Times reported from the company’s filing, up 45.7% from NT$896B in October 2025 and 12.7% from September’s NT$1,159B. September was the first month above NT$1 trillion. In US dollar terms, which Hon Hai also reports, October sales rose 39.7% on a year earlier and 11.4% on the month; the gap with the Taiwan-dollar figures is the exchange rate. Sales for January through October were NT$8.98T, up 40.4%, and are already 10.8% more than the company sold in all of 2025.
The month-on-month growth came from outside its AI segment. Hon Hai said smart consumer electronics grew strongly from September and computing and components grew significantly, while cloud and networking products, the segment that includes AI servers, slightly declined. It gave three reasons: some customers moving to a consignment model, tight supply of materials, and new models entering mass production. Hon Hai did not say which customers or parts. Under consignment, the customer buys some components itself, so the assembler books less revenue for the same product. Against October 2025, all four segments grew strongly, the company said, with cloud and networking growing most.
Two months above NT$1 trillion
Hon Hai consolidated monthly sales, NT$ trillions, October 2025 to October 2026 (unaudited, as filed; October 2026 as reported by China Times). The dotted line, at NT$1,039B, is the average November and December would need for fourth-quarter sales to be 30% above the fourth quarter of 2025, our calculation from Bloomberg’s report of analysts’ expectations.
Data
| Month | NT$ thousands | On prior month | On a year earlier |
|---|---|---|---|
| Oct 2025 | 895,708,525 | – | 11.3% |
| Nov 2025 | 844,275,843 | -5.7% | – |
| Dec 2025 | 862,861,362 | 2.2% | – |
| Jan 2026 | 730,039,420 | -15.4% | – |
| Feb 2026 | 595,813,348 | -18.4% | – |
| Mar 2026 | 803,737,716 | 34.9% | – |
| Apr 2026 | 832,097,956 | 3.5% | – |
| May 2026 | 859,409,333 | 3.3% | – |
| Jun 2026 | 821,762,936 | -4.4% | – |
| Jul 2026 | 946,512,543 | 15.2% | – |
| Aug 2026 | 921,766,023 | -2.6% | – |
| Sep 2026 | 1,158,633,235 | 25.7% | – |
| Oct 2026 | 1,305,319,000 (≈) | 12.7% | 45.7% |
What the fourth quarter needs
Analysts’ expectations leave room for a slower November and December. Bloomberg reported that analysts on average expect about 30% sales growth for the three months ending December; it did not say against which period, and we take it as on a year earlier. The fourth quarter of 2025, as the sum of its monthly sales, was NT$2.60T. Thirty percent more is NT$3.38T. October supplies 39% of that, which leaves NT$2.08T for November and December, or NT$1,039B a month: 20% less than October, though still 22% more than the same two months of 2025. If the 30% were on the third quarter instead, November and December would need about NT$1,315B a month, about level with October.
Hon Hai’s own outlook got no stronger. The company said AI-related operations are expected to keep growing in the fourth quarter and that, with the traditional second-half peak season for ICT products, its overall performance should be in line with current market expectations. It used the same words a month ago. For the third quarter, in August, it had promised significant growth on the quarter and strong growth on the year; the third quarter came in 20.4% above the second, and 47.1% above a year earlier. Hon Hai reports third-quarter results on November 12.
October alone is 39% of a quarter 30% above a year earlier
Hon Hai quarterly sales, NT$ trillions, as sums of monthly sales, with growth on the same quarter a year earlier. The last bar is our calculation of fourth-quarter 2026 sales at 30% above the fourth quarter of 2025: October’s actual sales (solid) and the November and December sales that would be needed (outlined). Reported quarterly revenue differs slightly from the sum of months.
A smaller base at its rivals
Hon Hai is the largest of Taiwan’s server makers and, in September, among the slowest growing. Its September sales rose 38.42% on a year earlier. Wiwynn’s nearly doubled, and Wistron’s and Pegatron’s rose about 87%, though from far smaller bases: Hon Hai’s September sales were about three times Wistron’s. Hon Hai also makes iPhones and other consumer devices, which grow more slowly. Its cloud and networking segment was 42% of revenue in the fourth quarter of 2025, against 26% a year earlier, and passed half, at 51%, in the second quarter of 2026. The other makers report October sales by November 10.
The shares fell before the figures came out. Hon Hai published October sales after the Taipei market closed on November 5. Its shares had fallen 2.1% that day, and the TAIEX fell 1,374.19 points, or 3.2%, to 41,574.72, in a sell-off led by electronics stocks on worries about AI infrastructure spending, two days after the US midterm elections.
Taiwan’s server makers, September
September 2026 sales growth on September 2025, %, for Taiwan’s listed server and electronics makers, from their monthly filings as reported by China Times (Wiwynn from its filing via Yahoo Taiwan). The tooltip on each bar gives September sales in NT$ billions. Hon Hai’s October growth was 45.7%; the others have not reported October.
What this changes on 06.ai
- Pack lead (How much compute does AI demand need by 2027?): Hon Hai’s monthly sales are the earliest hard read on server shipments each month; October’s dip in cloud and networking, and the consignment shift behind part of it, mean assembler revenue can fall even when shipments hold up.
- Series lead: monthly sales of Hon Hai, Quanta, Wistron and Wiwynn, released by the 10th of each month, as a leading series for the compute packs.
- Watch: November 12, Hon Hai’s third-quarter results and the cloud and networking share; the share passed half in the second quarter.
Sources and method
| Item | Figure | Source |
|---|---|---|
| October | October 2026 consolidated revenue NT$1兆3053.19億 (NT$1.3053T), a record; January–October NT$8兆9750.92億 | China Times, Nov 5 |
| Growth, segments | Up 45.7% on a year earlier and 12.7% on September; in US dollar terms up 11.4% on the month, 39.7% on the year and 38.4% year to date; year-to-date growth 40.4%; cloud and networking products slightly down on September, citing some customers moving to a consignment model, tight material supply and new models entering mass production | EMSNow, Nov 5; Economic Daily News |
| Outlook | AI-related operations expected to continue growing in the fourth quarter; with the traditional 2H peak season for ICT products, overall performance expected to be in line with current market expectations; the same wording as the September report (Hon Hai monthly report, Oct 5) | ANI, via webindia123, Nov 5 |
| Consensus | Analysts on average expect sales growth of about 30% for the three months ending December; NT$1.31T is about US$39.7B | Bloomberg, via The Edge Malaysia, Nov 5 |
| Monthly sales | October 2025 NT$895,708,525K and October 2024 NT$804,847,646K; January–October 2025 NT$6,392,673,413K | Hon Hai RNS, Nov 5, 2025 |
| Monthly sales | November 2025 to August 2026 by month; FY2025 NT$8,099,810,618K | Hon Hai RNS (Investegate), Dec 2025–Aug 2026; Yahoo Taiwan |
| September, Q3 | September 2026 NT$1,158,633,235K, first month above NT$1T; Q3 NT$3,026.9B, up 20.44% on Q2 and 47.12% on a year earlier | Hon Hai monthly report, Oct 5 |
| Mix | Cloud and networking 40% of 2025 revenue; 42% in Q4 2025 against 26% a year earlier | Taipei Times, Mar 17 |
| Mix | Cloud and networking 51% of Q2 2026 revenue, the first time above half | The Next Web, Aug 12 |
| Peers | September 2026 sales: Quanta NT$325.3B (+76.7%), Wistron NT$380.806B (+87.19%), Pegatron NT$214.753B (+86.88%), Inventec NT$98.636B (+62.87%), Compal NT$94.434B (+35.4%) | China Times, Oct 8 |
| Peers | Wiwynn September 2026 sales NT$172.62B, up 99.99% | Yahoo Taiwan, Oct |
| Market | TAIEX closed at 41,574.72, down 1,374.19 points; Hon Hai down 2.1% | Trading Economics, Nov 5 |
| Q3 outlook | The July–September quarter expected to see significant quarter-on-quarter growth and strong year-on-year growth (Aug 12) | Hon Hai Q2 2026 results, via I-Connect007 |
Growth: 1,305,319,000 ÷ 895,708,525 − 1 = 45.73%; ÷ 1,158,633,235 − 1 = 12.66% (NT$ thousands; October 2026 is China Times’ NT$1兆3053.19億, so the last digits are rounded). Year to date 8,975,092,000 ÷ 6,392,673,413 − 1 = 40.40%; against FY2025 8,099,810,618, 10.8% more.
Quarters are sums of monthly sales; the third quarter of 2025 is the third quarter of 2026 divided by 1.4712, from Hon Hai’s reported growth of 47.12%: Q4 2025 NT$2,603B (against NT$2,132B a year earlier, 22.1%); Q1 2026 NT$2,130B (against NT$1,642B a year earlier, 29.7%); Q2 2026 NT$2,513B (against NT$1,797B a year earlier, 39.8%); Q3 2026 NT$3,027B (against NT$2,057B a year earlier, 47.1%). Fourth quarter at 30%: NT$2,603B × 1.30 = NT$3,384B; less October NT$1,305B = NT$2,078B for November and December, or NT$1,039B a month, 20.4% below October; against November and December 2025, NT$1,707B, that is 21.7% more. Bloomberg did not give the base of its 30%; if it were the third quarter instead, the quarter would need NT$3,935B.
Peers: Hon Hai’s September NT$1,159B ÷ Wistron’s NT$380.8B = 3.0×.
Wire reports are written within hours of the news, on a six-hour schedule. Each lists its sources and shows the arithmetic behind its figures. Not investment advice.