Foxconn posts record USD 1.86 bn profit in Apr-June quarter, up 35% YoY on AI server demand
Taipei, August 12
Foxconn reported its highest-ever net profit for the second quarter, rising 35 per cent year-on-year to NT$59.97 billion, as cloud and networking products accounted for more than half of its revenue amid strong demand linked to AI infrastructure investments, according to a news report by Focus Taiwan.
The report noted that the company's net profit for the April-June quarter rose 20 per cent from the previous quarter, while earnings per share increased to NT$4.27 (USD 0.133) from NT$3.19 (USD 0.099) a year earlier and NT$3.56 (USD 0.111) in the first quarter.
Foxconn's consolidated sales rose 41 per cent year-on-year to NT$2.53 trillion (USD 78.56 billion) in the second quarter, up 19 per cent from the previous quarter.
The cloud and networking division accounted for 51 per cent of total revenue in the quarter, up from 48 per cent in the first quarter. Smart consumer electronics contributed 29 per cent of sales, while computing and electronic components accounted for 15 per cent and 5 per cent, respectively.
The report said Foxconn's second-quarter operations improved significantly from both a year earlier and the previous quarter, supported by a stronger product portfolio that included AI servers and AI racks, driven by investment in AI infrastructure.
The company's operating margin rose to 3.75 per cent in the second quarter from 3.15 per cent a year earlier and 3.57 per cent in the first quarter.
However, gross margin declined to 6.12 per cent from 6.33 per cent a year earlier and 6.18 per cent in the previous quarter. Net margin stood at 2.37 per cent, down from 2.47 per cent a year earlier but marginally higher than 2.36 per cent in the first quarter.
According to the report, Foxconn's net profit for the first half of 2026 stood at NT$109.89 billion (USD 3.41 billion), up 27 per cent year-on-year, while earnings per share reached NT$7.84 (USD 0.244).
Consolidated sales for the January-June period rose 35 per cent from a year earlier to NT$4.65 trillion (USD 144.43 billion), the report added.
The results highlight the growing contribution of Foxconn's cloud and networking business to its overall revenue during the current AI boom.
— ANI
Reader Comments
Impressive growth, but I hope Foxconn also focuses on ethical manufacturing practices and fair wages for its employees, especially in their operations in India and elsewhere. Growth shouldn't come at the cost of workers' rights.
This shows the global supply chain is shifting towards AI infrastructure. As someone who follows tech stocks, Foxconn is clearly benefiting from the AI boom. But these margins are still thin—3.75% operating margin shows how competitive this business is.
It's good to see Taiwanese companies thriving in the AI era. India's own electronics manufacturing needs to step up its game—we can't just be a consumer market; we need to be part of this production story too. Make in India needs more such success stories!
The demand for AI servers is clearly not slowing down. Foxconn's cloud division now making over half their revenue is huge. Hopefully this also means more job creation in the regions where they operate, including India.
Great performance by Foxconn! But I wonder if the declining gross margin (6.12% vs 6.33% last year) is a concern. They're growing revenue but at slightly lower profitability per unit. The AI competition must be intense. Still, getting close to this scale is no small feat.
Waah! That's a massive jump! And to think, just a few years ago everyone was worried about electronics demand. Now AI is pumping up the market. India needs more AI-focused manufacturing investments—this is the future for sure! 😊
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.