Foxconn Q2 sales jump on AI demand

Foxconn reported a 39.8% year-on-year increase in second-quarter revenue, with April–June sales reaching T$2.513 trillion, or about $78.71 billion. The performance underscores a sharp rebound in the period, supported by robust demand across key business segments.

June was a particularly strong month, with revenue rising 52.1% year-on-year to T$821.8 billion. This marked a record level for June, highlighting sustained momentum into the end of the quarter.

The company cited strong demand for AI products as a major driver of the quarter’s results. AI-related orders supported solid revenue growth in Foxconn’s cloud and networking products division, which has become an important beneficiary of increased investment in data center infrastructure.

In addition to cloud and networking, Foxconn’s smart consumer electronics segment delivered significant growth. This division includes iPhones and other consumer devices, indicating healthy end-market demand for premium electronics alongside the expansion in AI-focused hardware.

Looking ahead, Foxconn said it expects its operations to grow both quarter-on-quarter and year-on-year in the third quarter. The company indicated that AI racks are likely to maintain their growth trend, suggesting continued strength in AI-related infrastructure demand.

Despite the positive operational outlook, Foxconn did not provide numerical forecasts. Management reiterated that the company does not issue formal numeric guidance, keeping its forward-looking comments qualitative in nature.

Alongside the upbeat revenue figures and outlook, Foxconn highlighted the need to closely watch the broader environment. The company stated that it remains necessary to monitor the impact of the volatile global political and economic situation, without giving further details.

This caution sets a more measured tone around the growth narrative, acknowledging that external conditions could influence operations, supply chains, or customer demand even as underlying business drivers remain strong.

In equity markets, Foxconn’s shares have gained 4.3% year-to-date. While positive in absolute terms, this performance has lagged the broader Taiwan market, which has risen 61.5% over the same period.

Ahead of the revenue announcement, Foxconn’s stock closed up 0.6% on the Friday before the release. The divergence between the company’s earnings momentum and its relative share performance provides context for how investors have so far responded to the improving fundamentals.