Foxconn Surpasses Estimates with Record Third-Quarter Revenue Driven by AI Demand

TAIPEI (Reuters) – Foxconn, the largest contract electronics manufacturer globally and a major assembler of iPhones for Apple, reported record revenue for the third quarter, driven by robust demand for artificial intelligence (AI) servers.

The company’s revenue surged 20.2% year-on-year to T$1.85 trillion ($57.3 billion). Foxconn noted in a statement that this performance surpassed its initial growth expectations.

The revenue figures also exceeded the anticipated T$1.79 trillion, a forecast that weighs analyst predictions based on their historical accuracy. Strong demand for AI servers significantly boosted revenue in Foxconn’s cloud and networking products division, which counts companies like Nvidia among its clients.

In the consumer electronics sector, including iPhones, the company experienced quarter-on-quarter growth attributed to new product launches, though the year-on-year performance remained stable.

The third quarter typically marks the time when Taiwanese tech companies ramp up production of smartphones, tablets, and other electronics in preparation for the year-end holiday season in Western markets.

Revenue for September alone reached T$733 billion, representing a 10.9% increase from the same period last year, marking the second highest monthly revenue ever recorded for September.

"With the peak season approaching in the latter half of the year, we expect our operations to gradually gain momentum," Foxconn remarked regarding its outlook for the current quarter. The company anticipates that the fourth quarter will align with existing market expectations but did not provide specific numerical forecasts.

Foxconn’s stock has soared 86% this year, significantly outperforming a 24% increase in the broader Taiwan market. Shares rose 3.7% on Friday prior to the revenue announcement, contrasting with a 0.4% decline in the benchmark index.

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 typically featuring announcements of new products or partnerships.