Taipei: Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, has reported a record-breaking third-quarter revenue driven by strong demand for artificial intelligence products. However, the revenue figures fell short of market forecasts, and the company has issued a cautious outlook regarding exchange rates.
According to Radio Television Brunei, Foxconn announced that its revenue for the third quarter climbed by 11% compared to the same period last year, reaching T$2.057 trillion ($67.71 billion). Despite this impressive growth, the figure was below the T$2.134 trillion LSEG SmartEstimate, which is based on forecasts from analysts known for their consistent accuracy. Nevertheless, Foxconn maintained that the outcome surpassed its expectations.
On a U.S. dollar basis, Foxconn reported a 16.1% year-on-year increase in third-quarter revenue. This growth comes amid an 8% appreciation of the Taiwan dollar against the U.S. dollar. The company’s cloud and networking products division experienced
robust growth thanks to strong AI demand, while the smart consumer electronics segment, which includes iPhones, saw a slight revenue decline attributed to exchange rate effects.
In September alone, Foxconn’s revenue increased by 14.2% year-on-year to T$837.1 billion, marking a record for the month. The company anticipates continued sequential quarterly growth as AI server shipments continue to rise in the fourth quarter, alongside the traditional peak season ahead of year-end holidays in major Western markets.
Foxconn cautioned about the need for ongoing monitoring of the global political and economic situation and exchange rate fluctuations, though it did not provide further details. While the company does not issue numerical forecasts, it plans to release its third-quarter earnings on November 12.
Foxconn’s stock has performed well this year, with a 23% increase compared to a 16% rise in the Taiwan market. The stock closed up 0.44% on Friday, ahead of the revenue data release, in contrast to a 1.45% gain
for the benchmark index.