Hon Hai Precision: Strong Q4 Results And Positive Outlook

I maintain a 'Buy' rating for Hon Hai, considering its solid performance and favorable prospects. Its operating income jumped 32.7% YoY in 4Q2025, thanks to the outperformance of its AI server business. I expect the positive momentum to be continued. Management is guiding for a 15+% revenue growth in 1Q2026. I am projecting a 20 bps gross margin expansion for the full year.