Taiwan’s Foxconn expects strong AI demand to continue driving growth this year after the world’s largest contract electronics maker reported a 35% jump in second-quarter net profit that beat analyst forecasts.
Net profit for the April to June period rose to T$59.97 billion (US$1.86 billion) from T$44.4 billion a year earlier, exceeding the LSEG consensus estimate of T$58.8 billion.
Foxconn, formally known as Hon Hai Precision Industry, maintained its previous forecast for “strong” revenue growth this year, saying demand for AI-related products would remain a key growth driver throughout 2026. The company does not provide numerical guidance.
The upbeat outlook follows a 40% year-on-year increase in second-quarter revenue reported in July, reflecting continued demand for its AI server business.
Foxconn is Nvidia’s largest server maker and Apple’s top iPhone assembler. It is expanding its manufacturing footprint beyond China, with facilities in Mexico and Texas being developed to produce AI servers for Nvidia, while most iPhones it makes for Apple and sold in the US are now assembled in India.
The company is also exploring further expansion into electric vehicles.
Foxconn shares closed 2.7% higher on Wednesday ahead of the earnings release. They have gained 17% so far this year, although they have underperformed the broader Taiwan index, which has risen 57%.
Foxconn is scheduled to hold its earnings call later Wednesday in Taipei.
Reuters
