Foxconn Q2 profit surges 35% on AI server demand

Foxconn, formally known as Hon Hai Precision Industry and headquartered in Taiwan, announced its second-quarter earnings on Wednesday, August 12, revealing a profit of T$59.97 billion ($1.86 billion) for the April–to-June period. The result represented a 35% increase from the prior year's T$44.4 billion and exceeded the LSEG consensus estimate of T$58.8 billion, demonstrating the company's ability to beat analyst expectations. In a brief earnings release, Foxconn attributed its strong performance to continued demand for artificial intelligence infrastructure and reiterated its forecast of "strong" revenue growth for the full year, though it declined to provide specific numeric targets.

As the world's largest contract electronics manufacturer, Foxconn serves two of the world's most valuable technology companies: it is Nvidia's biggest supplier of servers and Apple's top assembler of iPhones. In July, the company had already reported a 40% year-on-year jump in second-quarter revenue, signaling the breadth of demand across its portfolio. To capture continued AI server growth, Foxconn is investing in new manufacturing capacity: the company is constructing factories in Mexico and Texas dedicated to producing AI servers for Nvidia. Meanwhile, its iPhone production footprint is shifting, with the bulk of devices sold in the United States now assembled in India rather than China, while most iPhone assembly for the broader market remains in China. The company has also been exploring expansion into electric vehicles, diversifying beyond its core electronics assembly business.

Foxconn shares closed 2.7% higher on Wednesday ahead of the earnings release, and the stock has gained 17% year-to-date. However, this performance trails the broader Taiwan stock index by a substantial margin—the index has posted a 57% gain over the same period, suggesting that Foxconn's AI and consumer hardware strength may already be reflected in valuations or that investors harbor concerns about competitive or demand-related headwinds. The company will hold its full earnings call later Wednesday in Taipei, where management may provide additional color on the outlook and capital allocation plans.