TAIPEI – Taiwan’s Foxconn, the world’s largest contract electronics maker, reported record third-quarter revenue driven by booming demand for artificial intelligence (AI) products. However, the reported figures fell short of analyst forecasts, prompting the company to issue a cautionary note regarding exchange rate fluctuations.
Foxconn, formally known as Hon Hai Precision Industry Co., announced on Sunday that its revenue for the third quarter jumped 11% from the same period last year to T$2.057 trillion ($67.71 billion).
Despite achieving a record result, the revenue missed the market consensus. The figure came in below the T$2.134 trillion LSEG SmartEstimate, which aggregates forecasts from leading analysts. The company acknowledged the miss but stated the results were still “better than expected.”
AI Demand Powers Growth
The record revenue was primarily attributed to the strong demand for AI servers, which drove robust growth in the company’s cloud and networking products division. Foxconn is a critical player in this space, serving as the largest server maker for chip giant Nvidia. The continuous ramp-up of AI server shipments is expected to sustain the company’s momentum into the final quarter of the year.
Exchange Rates and Consumer Electronics
While AI provided a powerful tailwind, the company’s traditional cash cow faced headwinds. Foxconn, which is also Apple’s top iPhone assembler, reported a slight revenue decline in its Smart Consumer Electronics division. This contraction was largely attributed to the adverse impact of exchange rates.
The impact of currency was visible in the year-over-year comparisons: while revenue rose 11% in Taiwan dollars, it surged by a more substantial 16.1% when calculated in U.S. dollar terms, reflecting the significant strengthening of the Taiwan dollar (approximately 8% year-to-date) against the greenback.
Q4 Outlook
Looking ahead, Foxconn expects operations to maintain sequential quarterly growth in the fourth quarter, supported by the ongoing increase in AI server shipments and the traditional peak season ahead of year-end holidays in major Western markets.
The company, which will report its third-quarter earnings on November 12, concluded its statement with a warning: it will need to closely monitor “the impact of the global political and economic situation and exchange rate fluctuations.”
