Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, reported Thursday that its second-quarter operating profit surged 27% year on year, fueled by strong growth in its artificial intelligence server business.
Q2 2025 results vs. LSEG SmartEstimates (weighted toward historically accurate analysts):
- Revenue: NT$1.79 trillion ($59.73 billion) vs. NT$1.79 trillion expected
- Operating profit: NT$56.596 billion vs. NT$49.767 billion expected
- Net profit: NT$44.36 billion vs. NT$38.81 billion expected
Foxconn, formally known as Hon Hai Precision Industry, is Apple’s primary iPhone assembler and has been working to replicate its consumer electronics success in the AI sector. The company produces AI-optimized server racks and is a key manufacturing partner for U.S. chip leader Nvidia.
In its earnings report, Foxconn projected that revenue from its AI server segment would grow over 170% year on year in the current quarter. It also reiterated on Aug. 5 that it expects continued revenue growth in Q3, while keeping a close watch on “evolving global political and economic conditions.”
On July 30, Foxconn announced a strategic partnership with TECO Electric & Machinery, taking a stake in the industrial motor maker to jointly develop AI data centers. The company is also branching into new sectors, including electric vehicle assembly and semiconductor manufacturing.
However, U.S. President Donald Trump’s global tariff policy could weigh on the company’s 2025 outlook. In anticipation of potential tariffs, Foxconn has already shifted most final assembly of iPhones destined for the U.S. market to India.
Source: CNBC
