Taiwanese company Foxconn exceeded analysts’ expectations by recording record revenue in the third quarter, Reuters reports. As the largest contract electronics manufacturer and major iPhone assembler, Foxconn posted revenue growth of 20.2% year-on-year to NT$1.85 trillion ($57.3 billion). However, success is largely due to the high demand for servers for artificial intelligence.
Image source: Foxconn
Actual revenue figures also exceeded the forecast of global financial analytics provider LSEG SmartEstimate, which put the figure at NT$1.79 trillion. It is noted that the main contribution to Foxconn’s revenue growth was made by increased demand for AI servers. This provided a significant increase in revenue in the cloud and networking segment, in which Nvidia is a key customer. In the consumer electronics segment, which includes the assembly and production of iPhones for Apple, quarterly revenue also showed growth due to the launch of new products. However, on an annualized basis, this figure remained at the level of last year.
The third quarter is traditionally an important period for Taiwanese companies, as active preparations begin to fulfill orders from large customers for the New Year sales. Foxconn’s September revenue was NT$733 billion, up 10.9% year-on-year. “As we enter the peak season in the second half of the year, we expect our operating performance to gradually gain momentum,” Foxconn said in commenting on its fourth-quarter outlook.
Despite strong year-end guidance, the company did not provide more precise data for the fourth quarter, saying only that it is preparing for results “within market expectations.” According to Reuters, since the beginning of 2024, Foxconn shares have risen by 86%, which significantly exceeds the growth of the Taiwan stock market as a whole, which amounted to 24%. Last Friday, the company’s shares rose 3.7% on the back of earnings data, despite the overall stock index falling 0.4%.
Foxconn will publish its full financial report for the third quarter on November 14. The company is also preparing to hold its annual Tech Day event on October 8-9, where new products will traditionally be announced and an updated list of partners will be announced.