Foxconn Third-Quarter Revenue Soars on AI Demand, Beats Market Forecast

Taiwan’s Foxconn, the ⁠world’s ⁠largest contract electronics maker, ⁠reported on Monday a 47% jump in third-quarter ​revenue year-on-year that beat market estimates, fuelled by strong AI-related demand.

• ‌Revenue for the July-September ‌quarter was T$3.03 trillion ($95.4 billion), well above an LSEG ⁠SmartEstimate of ⁠T$2.83 trillion that gives greater weight to forecasts from analysts ​who are more consistently accurate.

Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart ​consumer electronics, which include iPhones, posted significant growth, the company ⁠said.

• September ⁠revenue alone rose 38% ⁠year-on-year ​to T$1.16 trillion, a record for a single month and the ​first time it ⁠has surpassed T$1 trillion on a monthly basis.

• AI-related operations are expected to continue growing in the fourth quarter, the company said.

• Together with the traditional peak season for electronics products ⁠in the second half of the year, this should “support overall performance ⁠in line with current market expectations,” it said.

But it added that “it remains necessary to monitor the impact of a volatile global political and economic environment”.

• Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full third-quarter earnings on November 12.

• The company’s shares have gained 10% this year, ⁠underperforming a 72% rise for the Taiwan market. The stock closed up 1.2% on Monday ahead of the revenue data release. The benchmark index ended the day 2.6% ​higher.

($1 = 31.7640 Taiwan dollars)

Source: money.usnews