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Foxconn, the world's largest contract electronics maker, reported record-breaking third-quarter revenue of $57.3 billion, driven by strong demand for AI servers and cloud equipment. The company outperformed forecasts, posting a 20.2% year-over-year increase as its business momentum gains steam.
AI Servers Propel Foxconn's Record-Breaking Revenue
Due to robust demand for artificial intelligence (AI) servers, Foxconn, the biggest contract electronics producer in the world based in Taiwan, posted its highest-ever revenue for the third quarter, surpassing forecasts.
Sales for Apple's largest iPhone manufacturer reached T$1.85 trillion ($57.3 billion), an increase of 20.2% from the previous year, Reuters reports.
For Foxconn, "the result exceeded the company's original expectations of significant growth," as stated in Saturday's update.
Strong Demand for Cloud and Networking Drives Growth
Additionally, it surpassed a T$1.79 trillion LSEG SmartEstimate, which prioritizes predictions made by analysts with a higher track record of accuracy.
Foxconn, whose clients include Nvidia, an AI chip company, reported strong demand for its cloud and networking equipment sector, which resulted in solid revenue growth.
Smart Electronics Maintain Performance Despite Market Flatness
New product launches drove robust quarterly growth for smart consumer electronics, which includes iPhones, but the category as a whole performed flat year over year.
In preparation for the end-of-year holiday shopping season in Western markets, tech businesses in Taiwan typically begin rushing to supply big sellers like Apple with smartphones, tablets, and other devices in the third quarter.
September Sales Spike as Foxconn Eyes Q4 Momentum
In September alone, total income hit T$733 billion, marking a year-on-year increase of 10.9% and the second-highest monthly total ever.
"Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum," Foxconn stated regarding its outlook for the current quarter.
Q4 Projections Expected to Meet Market Expectations
The statement continued, "The fourth quarter is expected to be roughly in line with current market expectations," but did not provide any further details.
Per MSN, the organization does not make quantitative predictions available.
The wider Taiwan market has seen a 24% increase in value this year, while Foxconn's shares have soared 86%. In defiance of a 0.4% decline on the benchmark index, they ended Friday up 3.7% in anticipation of the revenue data release.
Anticipating Tech Day and Full Earnings in November
Full third-quarter earnings will be reported on November 14 by the corporation. Typically, Foxconn unveils new products or partnerships at its annual Tech Day, which is set for Oct. 8-9.
