Foxconn Q2 revenue jumps 40% on record AI server demand

Taiwan's Foxconn Hon Hai Precision Industry Co., Ltd. reported second-quarter revenue of T$2.513 trillion ($78.71 billion) on Saturday, a roughly 40% year-on-year increase driven by demand for artificial intelligence servers and cloud infrastructure products. The figure beat market forecasts and marked a record for the April-to-June period.foxconn+1

AI Powers Record Quarter

June revenue alone rose 52.1% year-on-year to T$821.8 billion, a record for the month. The results cap a quarter in which the world's largest contract electronics manufacturer saw accelerating growth — May revenue had already surged 39.6% annually to a record NT$859.4 billion, prompting the company in early June to raise its second-quarter guidance above prior forecasts.iconnect007+3

Foxconn, officially known as Hon Hai Precision Industry, is Nvidia's ↗ 0.90% largest server manufacturing partner. Cloud and networking products — the segment that includes AI servers — have grown from 30% of the company's revenue in 2024 to around 40% in 2025, and analysts expect that share to continue climbing. In the first quarter of 2026, revenue hit NT$2.12 trillion with 29% year-on-year growth, meaning the pace picked up further in the second quarter.foxconn+2

Geopolitical Caution

Despite the strong results, Foxconn cautioned that geopolitical tensions and currency fluctuations could disrupt operations going forward. The company has repeatedly flagged such risks in recent quarters, warning about uncertainties from U.S. tariff policies and broader trade friction.money.usnews+3

Foxconn said it expects AI rack shipments to maintain momentum into the third quarter. The company will report full second-quarter earnings, including profit figures, on August 12.foxconn

Broader Context

The results underscore the extent to which AI infrastructure spending is reshaping Foxconn's business mix. Full-year 2025 revenue reached NT$8.1 trillion, up 18% annually, with net profit climbing 24% to NT$189.35 billion. In the first quarter of 2026, operating profit surged 63% even as overall revenue grew 29%, suggesting improving margins on higher-value AI hardware.taipeitimes+2

Shares of Foxconn, listed on the Taiwan Stock Exchange, will next trade on Monday. The company's stock rose roughly 25% through 2025 as investors priced in the AI server buildout.cnbc