Foxconn Industrial Internet (601138.SS): 2Q26 Results In-line with Guidance

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11 Aug 2026 07:41:42 ET │ 12 pages

Foxconn Industrial Internet (601138.SS)

2Q26 Results In-line with Guidance

CITI'S TAKE

FII released 2Q26 results today. 2Q26 revenue is up 22% QoQ to

Rmb307bn, beating CitiE by 6% while in-line with BBGe. GPM at 7.0% (0.4pts QoQ, +0.5pts YoY), below CitiE/BBGe by 0.5/0.4pts. OP came in at

Rmb17.2bn (+21% QoQ, +101% YoY), ahead of CitiE/BBGe by 5%/8%.

NP/adjusted NP printed Rmb13.1bn/12.7bn, at the mid-pt of Julyguidance. By segments, (1) cloud computing rev rose by 76% YoY in 1H26

(vs. CitiE 89%, likely on higher consignment mix). FII indicates that CSP AI

server revenue grew by 2.3x+ YoY in 1H26, GPU AI rack shipment up by

3.2x, ASIC AI rack shipment up by 3x and ASIC CPU server shipment up

2.5x. (2) FII’s datacenter high-speed networking rev rose by 1x YoY in

1H26, 800G+ switch shipment up by 1.4x, SuperNIC shipment up by 1.4x.

We keep our 2026/27 NP estimate of Rmb62/89bn, and the stock is

trading at ~15x 2027 CitiE EPS.

Buy

Price (11 Aug 26 15:00)

Rmb66.010

Target price

Rmb99.000

Expected share price

50.0%

return

Expected dividend yield

1.7%

Expected total return

51.7%

Market Cap

Rmb1,309,909M

US$194,187M

Karen HuangAC

Figure 1. FII result comparison

Kyna Wong

Kevin Chen

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Source: Citi Research, Bloomberg, Company Reports