Double-Digit Revenue Growth Beats Forecasts
In a statement released Saturday, Foxconn—formally known as Hon Hai Precision Industry—said revenue rose 15.82% year-on-year to T$1.797 trillion ($55.5 billion). That figure topped the T$1.7896 trillion consensus from the LSEG SmartEstimate, which weights the predictions of consistently accurate analysts more heavily.
The strong performance was driven by robust demand in its cloud and networking products division, which benefited from booming AI-related orders. Foxconn’s customers include leading AI chipmaker Nvidia, which has seen its own growth surge amid global investment in AI infrastructure.
AI Demand Outshines Flat iPhone Sales
While AI-related business delivered impressive gains, Foxconn described its smart consumer electronics segment—including its key iPhone assembly business for Apple—as recording “flattish” revenue growth year-on-year. The company cited exchange rate effects as a dampening factor on sales.
Revenue for June alone rose 10.09% compared to the same month last year, hitting T$540.237 billion—a record high for June.
Outlook Positive but Risks Remain
Looking ahead, Foxconn said it expects growth in the current quarter both on a sequential basis and compared to the same period last year. However, the company cautioned about multiple risk factors.
“The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” the company said, without offering specific details.
These risks include ongoing U.S.-China trade tensions, which remain in focus after former U.S. President Donald Trump recently revealed plans to send tariff proposals to 12 countries, with “take it or leave it” terms.
Foxconn’s largest iPhone production site is in the Chinese city of Zhengzhou, underscoring the company’s exposure to trade policy uncertainties.
Market Reaction and Share Performance
Foxconn does not issue formal numerical forecasts but will report full second-quarter earnings on August 14.
The company’s shares delivered a strong performance in 2024, surging 76% and outpacing the Taiwan market’s 28.5% rise. However, the stock is down 12.5% so far this year, reflecting broader weakness in global technology stocks amid worries over trade policies and geopolitical friction.
On Friday, Foxconn shares closed 1.83% lower ahead of its revenue announcement, while Taiwan’s benchmark index fell 0.73%.