Foxconn posts record Q3 revenue on AI demand

Taiwan-based electronics giant Foxconn, the world’s largest contract manufacturer, posted record third-quarter revenue driven by robust demand for artificial intelligence (AI) products, although the results fell short of analysts’ market expectations.

Revenue climbed 11% year-on-year to T$2.057 trillion ($67.71 billion), slightly below the T$2.134 trillion consensus from LSEG SmartEstimate, which weighs consistently accurate analyst forecasts more heavily. On a U.S. dollar basis, revenue rose 16.1%, helped partly by a stronger Taiwan dollar, which has appreciated roughly 8% against the greenback this year.

Foxconn’s cloud and networking products division, fueled by AI-related server demand, was a key driver of growth. Conversely, the company’s consumer electronics segment, which includes iPhones, saw a modest revenue decline, primarily due to currency fluctuations. September alone marked a record T$837.1 billion in monthly revenue, reflecting strong seasonal performance.

Looking ahead, Foxconn expects sequential quarterly growth in Q4, supported by continued AI server shipments and the traditional year-end holiday demand in major Western markets. However, the company cautioned that global political and economic uncertainties, along with exchange rate volatility, will require close monitoring.

Foxconn, formally known as Hon Hai Precision Industry, will release detailed third-quarter earnings on November 12. Its shares have risen 23% this year, outperforming the 16% gain of the broader Taiwan market, signaling investor confidence in its AI-driven growth strategy despite short-term market disappointment.

As AI adoption accelerates globally, Foxconn’s performance highlights how contract manufacturers are increasingly benefiting from the technology sector’s rapid transformation, even amid currency and macroeconomic challenges.