Earnings
Home›Earnings›Results›Foxconn Q2 profit rises 35% as AI demand lifts results
Foxconn Q2 profit rises 35% as AI demand lifts results
Foxconn said cloud and networking products, including AI servers, made up 51% of second-quarter revenue, and it expects shipments of Vera Rubin server racks to start in the fourth quarter.
Taiwan contract electronics maker Foxconn, formally Hon Hai Precision Industry, reported a 35% rise in second-quarter profit, topping analyst expectations on continued strength in AI-related demand, according to Reuters. Net profit for the April to June period was T$59.97 billion, or about $1.86 billion, compared with T$58.8 billion expected by LSEG consensus and T$44.4 billion a year earlier. The company reiterated its view of “strong” revenue growth for the year, though it did not provide numeric forecasts. Foxconn said its cloud and networking products segment, which includes AI servers, accounted for 51% of second-quarter revenue, exceeding 50% for the first time. Smart consumer electronics products, including iPhones, accounted for 29% of revenue. Looking ahead, Foxconn’s rotating CEO Michael Chiang said AI-related business performance should keep growing in the third quarter, supported by seasonal gains in ICT products in the second half. He added that Vera Rubin server racks are expected to move into mass-production preparation in the third quarter, with shipments beginning in the fourth quarter, while noting CoWoS capacity constraints at chipmakers could shape AI server rack volumes next year.