Foxconn, the largest contract electronics manufacturer in the world, has released its Q2 revenue report and boasts of a 15.82% YoY increase.
As major technology companies ramp up spending on data centers, AI chips, and other backend equipment that support AI and cloud computing products, it has resulted in a surge in demand for Foxconn’s manufacturing capabilities and revenue.
Foxconn reports record Q2 revenue
Taiwanese electronics giant Foxconn, formally known as Hon Hai Precision Industry Co. Ltd, announced record-breaking second-quarter revenue on Saturday. The increase in revenue was driven by increased demand for artificial intelligence (AI) and cloud computing products.
Foxconn is the world’s largest contract electronics manufacturer and the biggest assembler of Apple Inc.’s iPhones. The company reported second-quarter revenue of T$1.797 trillion (approximately $55.2 billion), a figure that represents a 15.82% year-on-year increase.
The figure surpassed market expectations, beating the T$1.7896 trillion forecast from LSEG SmartEstimate.
Foxconn’s cloud and networking division, which serves major AI players like Nvidia Corp, saw significant growth. Sales from smart consumer electronics, which include Apple’s iPhone, showed a “flattish” year-on-year performance.
Nevertheless, Foxconn reported a strong finish to the quarter, with its June revenue rising 10.09% on the year to T$540.237 billion, a record high for that month.
The company did not provide a numerical forecast but said it expects growth in the third quarter compared to Q1 2025 and Q2 2024.
Global concerns factor heavily in future quarterly forecasts
Despite the impressive performance, Foxconn stressed the need for vigilance amid growing global uncertainties.
“The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” the company stated, without offering specific details.
Foxconn stated that these external risks could undermine its performance going forward.
The company’s call for caution follows renewed trade tension threats from the U.S. President, Donald Trump, who announced that he has signed letters to 12 countries detailing proposed tariffs on their exports to the U.S.
These “take it or leave it” offers are reportedly set to be sent out on Monday. While no countries have been specifically named so far, the president’s actions could escalate global trade tensions and affect companies like Foxconn, which rely on complex cross-border supply chains.
China-U.S. trade relations have historically been strained, even with the recent agreement between the world’s two largest economies regarding export restrictions. There is still the existential threat of relationship breakdowns and trade policy shifts that could have ripple effects on the firm’s business model.
Currency fluctuations are also on the company’s radar. Exchange rate shifts have already affected Foxconn’s smart electronics division, and continued volatility could erode margins or complicate cost management across its international operations.
Foxconn’s stock surged dramatically by 76% in 2023, significantly outperforming Taiwan’s broader market index, which rose 28.5%, but the stock has declined 12.5% so far in 2025.
On Friday, the firm’s shares closed down 1.83% ahead of the revenue release, compared to a 0.73% drop in the Taiwan Weighted Index (TWII).
The company is scheduled to release its full second-quarter earnings report on August 14.
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