Foxconn posts 35 per cent profit rise as AI infrastructure spending accelerates
The world’s largest contract electronics maker maintains its forecast for strong revenue growth in 2026, even as its shares underperform the broader Taiwan market.
Foxconn, formally known as Hon Hai Precision Industry, has reported a 35 per cent increase in second-quarter net profit, driven by escalating demand for artificial intelligence servers required for data centre infrastructure. The company announced on Wednesday that net income for the April to June period rose to 59.97 billion New Taiwan dollars, equivalent to approximately $1.86 billion.
The financial result surpassed analyst estimates compiled by Bloomberg, which had projected net income of 58.38 billion New Taiwan dollars. In its earnings announcement, the manufacturer attributed the growth directly to the expansion of AI infrastructure, stating that the sector is currently the primary driver of its business performance.
Foxconn, which serves as Nvidia’s largest server maker and Apple’s top iPhone assembler, confirmed it would maintain its previous forecast for “strong” revenue growth throughout 2026. This guidance comes as governments and technology corporations continue to invest heavily in data centre construction to support the training and operation of AI tools, including chatbots and autonomous agents.
The company’s strategic manufacturing footprint continues to shift in response to these demands. Foxconn is currently constructing facilities in Mexico and Texas specifically to manufacture AI servers for Nvidia. Additionally, while the majority of iPhones are still assembled in China, the company now produces the bulk of units sold in the United States from its operations in India.
Beyond consumer electronics and server hardware, Foxconn is actively exploring expansion into the electric vehicle sector. Despite a 17 per cent rise in its share price year-to-date, the stock has underperformed the broader Taiwan index, which has gained 57 per cent over the same period. Shares closed 2.7 per cent higher on Wednesday following the release of the earnings data.
