Foxconn Profit Surges 27% as AI Servers Eclipse iPhone Business

Taiwan’s Hon Hai Precision Industry, better known as Foxconn, posted stronger-than-expected second-quarter results as surging demand for artificial-intelligence servers helped the contract electronics maker counter softer smartphone sales. Net income for the April–June period rose 27% from a year earlier to NT$44.36 billion, beating analyst estimates of about NT$38.8 billion. Revenue grew 16% to NT$1.79 trillion, broadly matching projections, while operating profit reached NT$56.6 billion. Sales from cloud and networking hardware—including AI servers built for partners such as Nvidia—outpaced the long-dominant smart consumer-electronics division, which assembles Apple iPhones, for the first time. Management said the AI-server unit was the key driver of the earnings beat. Foxconn forecast “significant” year-on-year revenue growth in the third quarter and expects AI-server sales to jump more than 170%. While the company maintained a bullish full-year outlook, it anticipates a slight decline in consumer-electronics revenue. To support the shift toward data-center hardware, the group plans to boost capital spending by over 20% in 2025 and will continue expanding AI-server production at its plants in Texas and Wisconsin.