Foxconn bets on bumper AI demand as revenues surge

16th Mar 2026 13:23

(Sharecast News) - Electronics giant Foxconn flagged further strong growth on Monday on the back of booming demand for artificial intelligence, despite an unexpected dip in quarterly profits.

The Taiwanese firm, which is Apple's main iPhone assembler and makes AI servers for Nvidia, saw net profits fall 2% in the final three months of 2025 to NT$45.2bn (£1.1bn), largely due to a higher tax rate. Consensus had been for net profits closer to $63.86bn.

Revenues, however, jumped 22% to NT$2.61trn at the company - formally called Hon Hai Technology Group - while operating profits soared 33% at NT$85.6bn.

Over the full year, revenues rose 18% to reach a record NT$8.1trn, while net profits increased 24% to NT$189.4bn.

Looking to the current year, Foxconn - which does not provide numeric guidance - said: "Despite significant changes in tariff policies, geopolitics and global monetary policies, the AI server sector is expected to see strong growth in 2026."

It also flagged its latest five-year plan, which focuses heavily on AI.

"With the unprecedented expansion of capital expenditures by large global CSPs, Foxconn, as the world's largest AI server provider, will definitely seize this opportunity," it said. "As production capacity gradually comes online, AI servers will maintain strong growth."

Chair Young Liu added: "Our goal is clear: to transform Foxconn from the world's most important technology manufacturing partner into the most trusted industrial platform in the AI era.

"This will be the core direction of Foxconn's next stage of growth and the key to continuously creating long-term value for our shareholders."