FILE: Foxconn factory in Pardubice, Czech Republic. Archival photograph uploaded in 2010. Photo: Nadkachna / Wikimedia Commons, CC BY 3.0; cropped and resized. The cropped photograph is licensed under CC BY 3.0; the article text is not covered by that license.
Foxconn reported a 34% rise in third-quarter net profit to NT$77.5 billion Thursday, as demand for AI servers helped drive revenue to a quarterly record of NT$3.02 trillion, up 46% from a year earlier.
The electronics manufacturer, formally known as Hon Hai Technology Group, reported earnings per share of NT$5.51 for the July-September quarter. Operating profit rose 64% to NT$115.4 billion, the company said in its November 12 results announcement.
Foxconn said its cloud and networking business, supported by AI-server demand, was the primary driver of record revenue. Chairman Young Liu described AI servers as the group’s most significant growth engine and said the business was also improving profitability and capital efficiency.
Segment Outlooks Raised, Overall Growth Target Unchanged
The company raised its full-year outlook for all four major product segments: smart consumer electronics, cloud and networking, computing, and components and other products. Its overall target for strong full-year growth remained unchanged.
Foxconn expects strong fourth-quarter revenue growth both from the third quarter and from a year earlier. New-generation AI-server rack shipments are expected to support further quarterly growth in AI-server revenue, while smart consumer electronics is entering its peak shipment season.
The computing business faces a different near-term constraint. Tight memory supply is expected to contribute to a slight quarterly decline, although higher prices for some components are lifting average selling prices and supporting expected year-over-year growth.
Component Supply Remains a Risk for 2027
Liu said current customer demand supports confidence in continued growth in 2027, but warned that chips, memory and other key components remain tight across AI and consumer-electronics supply chains.
Foxconn expects new production capacity to ease bottlenecks gradually, while overall demand could continue to exceed supply next year. The company also cited political and economic uncertainty, inflation, interest rates and currency movements as risks to costs, investment and supply-chain decisions.
Source: Foxconn’s official press-release index, carrying its November 12 third-quarter results announcement.
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