Key facts
- Foxconn's second-quarter revenue increased by 39.8% year-over-year to T$2.513 trillion ($78.71 billion).
- Strong demand for AI-related products, particularly AI servers, fueled the revenue growth.
- AI servers accounted for 41% of Foxconn's revenue in the second quarter.
- Operating profit increased 27% year-over-year to NT$56.6 billion.
- Net profit rose 27% year-over-year to NT$44.4 billion.
- The company anticipates significant growth in the third quarter.
Taiwan's Foxconn, the world's largest contract electronics maker and a key supplier for Nvidia's AI servers, reported a significant jump in second-quarter revenue. The company announced a 39.8% year-over-year increase, reaching T$2.513 trillion ($78.71 billion), surpassing analyst expectations. This growth was primarily fueled by strong demand for AI-related products, with the AI server segment contributing 41% of the company's revenue, eclipsing its traditional smart consumer electronics segment for the first time.
For the second quarter of 2025, Foxconn's revenue reached NT$1.79 trillion, a 16% increase from the previous year. Both operating profit and net profit set record highs for the period, with operating profit rising 27% to NT$56.6 billion and net profit also increasing by 27% to NT$44.4 billion. The company's gross profit margin was 6.33%, operating profit margin was 3.16%, and net profit margin was 2.47%.
Looking at the first half of the year, Foxconn's revenue reached NT$3.44 trillion, up 20% from a year earlier. Net profit for the January-June period jumped 52% to NT$86.5 billion. The company's Group Chief Financial Officer, David Huang, noted that while the high unit price of AI server products diluted the gross profit margin, the overall growth momentum from AI server shipments and improved operational efficiency boosted profitability.
Foxconn anticipates continued strong performance in the third quarter, expecting significant growth both quarter-on-quarter and year-on-year, aligning with the traditional peak operating season. The company maintains its full-year forecast for significant growth, driven by AI servers and stable mass production, though it remains vigilant about geopolitical factors, tariffs, and exchange rates. The company has also been expanding its AI footprint through strategic investments, including a stake in TECO Electric & Machinery for data center collaboration, and is making inroads into electric vehicles and semiconductor manufacturing.
However, the company faces potential challenges from escalating trade tensions, including U.S. tariffs and threats of further tariffs on semiconductors. In response, Foxconn has increased iPhone production in India for U.S.-bound devices and announced a $1 billion North American investment plan.