Foxconn Third-Quarter Revenue Hits Record but Misses Market Forecast

Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, reported record third-quarter revenue on strong demand for artificial intelligence products, though results fell short of market forecasts.

Strong AI demand drove robust revenue growth in Foxconn’s cloud and networking products division. (Photo: Foxconn)

The company also expressed caution over exchange rate fluctuations, Ben Blanchard reported for Reuters.

Revenue for Nvidia’s biggest server maker and Apple’s iPhone assembler jumped 11% from the same quarter last year to T$2.057 trillion ($67.71 billion), Foxconn said in a statement on Sunday.

While that was below the T$2.134 trillion LSEG SmartEstimate—which gives greater weight to forecasts from analysts with more consistent accuracy—Foxconn said the result exceeded internal expectations.

On a U.S. dollar basis, Foxconn said third-quarter revenue rose 16.1% year-on-year.

The Taiwan dollar has strengthened about 8% so far this year against the greenback.

Strong AI demand drove robust revenue growth in the company’s cloud and networking products division. Smart consumer electronics, which includes iPhones, saw a slight revenue decline due to exchange rate effects, the company said.

September revenue rose 14.2% year-on-year to T$837.1 billion, a record for that month.

Operations are expected to “maintain sequential quarterly growth as AI server shipments continue to ramp up in the fourth quarter” and as the traditional peak season for year-end holidays approaches in major Western markets, the company said.