Foxconn, the world’s largest contract electronics manufacturer, has exceeded market expectations, posting record third-quarter revenue driven by robust demand for artificial intelligence (AI) servers. Revenue surged 20.2% year-on-year to T$1.85 trillion ($57.3 billion), surpassing the company’s initial projections and beating the T$1.79 trillion forecasted by LSEG SmartEstimate. Foxconn, Apple’s primary iPhone assembler, attributed the growth to strong performance in its cloud and networking products division, which supplies AI servers to customers such as Nvidia.
While the company experienced quarter-on-quarter growth in its smart consumer electronics segment, including iPhones, its year-on-year performance in this category remained flat. This period typically sees Taiwan’s tech companies ramping up production to meet Western holiday demand for smartphones, tablets, and other electronics. September alone saw a 10.9% year-on-year revenue increase, reaching T$733 billion, the second-highest ever for that month.
Looking ahead, Foxconn expects to gain momentum in the current quarter as it enters peak season but noted that fourth-quarter results will likely align with market expectations. Despite this outlook, the company refrained from offering numerical forecasts.
Foxconn shares have risen by 86% so far this year, significantly outperforming the broader Taiwan market’s 24% rise. Shares closed up 3.7% on Friday, ahead of the revenue announcement, while the broader market index fell by 0.4%. The company plans to release its full third-quarter earnings on November 14 and will host its annual Tech Day on October 8-9, an event where it traditionally reveals new products and partnerships.
Featured Image courtesy of The Register
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