Foxconn Q3 Profit Jumps 17%, Driven by Strong AI Server Demand
Taiwan’s Foxconn (Hon Hai Precision Industry), the world’s largest contract electronics manufacturer, reported a 17% rise in third-quarter profit, surpassing market forecasts. The strong performance was driven by robust demand for AI servers, a trend the company expects to continue fueling growth in 2025.
For the July–September quarter, Foxconn posted a net profit of T$57.67 billion ($1.89 billion), beating the T$50.4 billion consensus estimate compiled by LSEG. The company — Nvidia’s top server supplier and Apple’s main iPhone assembler — had already announced stronger-than-expected quarterly revenue last month, also supported by its expanding AI product line.
In its earnings statement, Foxconn said it anticipates significant year-on-year revenue growth in the fourth quarter, with AI server sales expected to rise further quarter-on-quarter. Notably, revenue from cloud and networking operations, which include AI servers, exceeded income from smart consumer electronics such as iPhones for the second consecutive quarter.
For the full year, Foxconn reaffirmed expectations of strong annual revenue growth, consistent with its earlier guidance from August. The company did not provide specific numerical targets for its quarterly or yearly outlook.
Foxconn continues to diversify production beyond China, with iPhones for the U.S. market now largely assembled in India, and new AI server factories being built in Mexico and Texas to supply Nvidia. The firm is also expanding into the electric vehicle (EV) sector, which it views as a major long-term growth opportunity. However, progress has been uneven — in August, Foxconn sold its former Lordstown, Ohio car factory for $375 million, including equipment originally purchased for EV manufacturing.
Shares of Foxconn have risen 36% so far this year, outperforming the Taiwan stock index’s 21% gain. On Wednesday, Foxconn shares closed 1.8% higher ahead of the earnings announcement.
