TAIPEI: Foxconn, the globe’s largest contract electronics manufacturer, announced record third-quarter revenue, driven by robust demand for artificial intelligence products. However, the figure fell short of market expectations, and the company issued a cautious statement regarding exchange rate impacts.
The company, which is a key server manufacturer for Nvidia and the primary assembler of Apple’s iPhone, reported a 11% year-on-year revenue increase to T$2.057 trillion ($67.71 billion) in a statement on Sunday.
This result was below the T$2.134 trillion LSEG SmartEstimate, a consensus that prioritizes forecasts from the most consistently accurate analysts. Despite this, Foxconn described its own performance as better than anticipated.
When measured in U.S. dollars, Foxconn’s third-quarter revenue saw a 16.1% annual increase. The Taiwan dollar has appreciated approximately 8% against the U.S. dollar this year.
The company attributed the strong growth to its cloud and networking products division, which benefited from vigorous AI demand. In contrast, its smart consumer electronics division, which includes iPhones, experienced a slight revenue decline, partly due to unfavorable currency exchange rates.
Revenue for September alone rose 14.2% from a year earlier to T$837.1 billion, setting a new record for that month.
Foxconn stated that it expects operations to “maintain sequential quarterly growth in the fourth quarter,” citing continued expansion in AI server shipments and the traditional peak season leading up to year-end holidays in key Western markets.
The company added a note of caution, however, saying, “the impact of the global political and economic situation and exchange rate fluctuations will need continued close monitoring.” It did not provide further details.
Foxconn, officially known as Hon Hai Precision Industry, does not issue specific numerical forecasts. The company is scheduled to report its full third-quarter earnings on November 12.
Foxconn’s stock has climbed 23% this year, outpacing the 16% gain of the broader Taiwan market. The shares closed 0.44% higher on Friday, just before the revenue announcement, while the benchmark index rose 1.45%.
