Foxconn Reports 15.82% Revenue Surge Driven by AI Demand

Foxconn, the world's largest contract electronics manufacturer, reported a record-breaking second-quarter revenue of T$1.797 trillion, marking a 15.82% year-on-year increase. This performance surpassed market expectations, which had forecasted T$1.7896 trillion. The surge in revenue was driven by the increased demand for artificial intelligence (AI) and cloud computing products, particularly in Foxconn's cloud and networking division, which serves major AI players. However, sales from smart consumer electronics, including Apple’s iPhone, showed a “flattish” year-on-year performance.

Foxconn's June revenue alone reached T$540.237 billion, a 10.09% increase compared to the same month last year, setting a new record for that month. The company did not provide a numerical forecast but indicated that it expects growth in the third quarter compared to the first quarter of 2025 and the second quarter of 2024. Despite the strong performance, Foxconn emphasized the need for vigilance amid growing global uncertainties. The company stated that evolving global political and economic conditions, as well as exchange rate changes, will need continued close monitoring. These external risks could undermine the company's performance going forward.

Foxconn's call for caution follows renewed trade tension threats from the U.S. President, who announced proposed tariffs on exports to the U.S. These actions could escalate global trade tensions and affect companies like Foxconn, which rely on complex cross-border supply chains. Currency fluctuations are also on the company's radar, as exchange rate shifts have already affected Foxconn's smart electronics division. Continued volatility could erode margins or complicate cost management across its international operations.

Despite the impressive performance, Foxconn's stock has declined 12.5% so far in 2025. The company is scheduled to release its full second-quarter earnings report on August 14. The company's strong finish to the quarter, with its June revenue rising 10.09% on the year to T$540.237 billion, a record high for that month, highlights its resilience and adaptability in the face of global challenges. The company's ability to navigate these uncertainties will be crucial in maintaining its growth trajectory in the coming quarters.