AI demand boosts iPhone maker Foxconn’s second-quarter revenue by 27%, beating forecasts

Taiwan’s Foxconn, the world’s largest contract electronics maker, reported Thursday that its second-quarter working revenue rose 27% yr over yr, on the energy of its rising synthetic intelligence server enterprise.

This is how Foxconn did within the second quarter of 2025 in contrast with LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra constantly correct:

• Income: 1.79 trillion New Taiwan {dollars} ($59.73 billion) vs. NT$1.79 trillion
• Working revenue: NT$56.596 billion vs. NT$49.767 billion

Second quarter income grew 16% from final yr, coming according to LSEG’s SmartEstimates. The corporate’s web revenue for the second quarter got here in at NT$44.36 billion, beating expectations of NT$38.81 billion.

Foxconn, formally known as Hon Hai Precision Business, is the world’s largest producer of Apple’s iPhones, and has been seeking to replicate its success in client electronics on the earth of AI.

The agency manufactures server racks designed for AI workloads and has turn out to be a key companion to American AI chip darling Nvidia.

Gross sales of Foxconn’s server merchandise made up the lion’s share of revenues within the second quarter at 41%, surpassing its good client digital merchandise for the primary time, which accounted for 35%.

In an earnings report, the corporate forecasted that its AI server enterprise would proceed to drive development into the present quarter, with income anticipated to extend by over 170% yr over yr.

Foxconn stated earlier this month that it anticipated total income to develop additional within the third quarter, however famous that the affect of “evolving international political and financial situations” could be intently monitored.

On the finish of July, Foxconn introduced that it was taking a stake in industrial motor maker TECO Electrical & Equipment in a strategic partnership to construct extra AI knowledge facilities.

The corporate has additionally proven its willingness to broaden into new areas, together with the meeting of electrical automobiles and the manufacturing of semiconductors.

Nonetheless, U.S. President Donald Trump’s international tariffs may affect Foxconn’s outlook this yr. In response to Trump’s tariff threats, the corporate has already moved most of its remaining manufacturing of made-for-the-U.S. iPhones to India.

Taiwan has been hit with a 20% “non permanent tariff” from the U.S., with commerce negotiations stated to be ongoing.

Final week, Trump additionally stated he would impose a 100% tariff on imports of semiconductors and chips, however not on corporations which are “constructing in the US.”

Whereas the main points of those tariffs stay unclear, Foxconn Expertise Co, a steel casing provider owned by Hon Hai Precision Business, introduced plans to take a position $1 billion within the U.S. over the following ten years as a part of its North American enlargement technique, in response to native media studies.