Foxconn's AI Hardware Sales Drive Profit Beat

By Sherry Qin

Foxconn Technology Group reported another strong quarter as it boosted production of servers and other tech hardware for the global artificial-intelligence buildout.

The earnings beat shows how far Foxconn has come in becoming a critical supplier supporting the sector's rapid growth, as hyperscalers continue to invest heavily in AI infrastructure.

Once mainly known as an assembler of Apple's devices, the world's largest contract electronics maker now derives a meaningful share of revenue from building AI servers for industry leaders such as Nvidia.

The Taiwanese company, formally known as Hon Hai Precision Industry, said net profit rose 35% from a year earlier to 59.97 billion New Taiwan dollars, equivalent to US$1.86 billion, for the three months ended June. Analysts had expected NT$58.22 billion, according to a FactSet consensus estimate.

Revenue jumped 41% to NT$2.526 trillion, more than earlier indicated, thanks to cloud and networking products, including AI servers, making up over half of total revenue for the first time. The smart consumer electronics segment encompassing smartphones contributed about one-third of the top line.

Chairman Young Liu said last month that the continuing infrastructure buildout was being driven by a broad range of customers, from AI model developers and cloud service providers to governments and enterprises. Demand from cloud service providers is set to underpin Foxconn's outlook further, while adoption by governments and corporates remains in its infancy. Liu has said he expects this infrastructure buildout to run for at least three to five years more without any signs of slowing.

Foxconn on Wednesday said it expects its AI server rack shipments to grow by a high double-digit percentage sequentially in the third quarter and more than double this year amid continued robust AI demand.

Shares of Foxconn have rebounded from a first-quarter slump as investors shrugged off geopolitical uncertainties and focused on soaring demand for AI hardware, driven by hyperscalers' massive investments in recent months. The Taipei-listed stock hit an all-time high in June before losing some ground, taking gains this year to about 17%.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

August 12, 2026 02:59 ET (06:59 GMT)