Record Q3 Revenue Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, posted Record Q3 Revenue fueled by strong global demand for artificial intelligence (AI) products. Despite the robust performance, the figure fell short of market forecasts, highlighting the challenges posed by exchange rate fluctuations and ongoing global economic uncertainty. The company, known formally as Hon Hai Precision Industry, reported that revenue rose 11% year-on-year to T$2.057 trillion ($67.71 billion) in the third quarter of 2025. However, this was slightly below the T$2.134 trillion SmartEstimate from LSEG, which places more weight on analysts with proven accuracy. On a U.S. dollar basis, Foxconn’s third-quarter revenue grew 16.1% year-on-year, though the Taiwan dollar’s 8% appreciation against the greenback weighed on results.Foxconn attributed much of its growth to surging demand for AI servers and networking products. Its cloud and enterprise division delivered significant momentum, offsetting weaker performance in the smart consumer electronics unit, which includes Apple’s iPhones. The iPhone business posted a slight decline in revenue due to unfavorable exchange rate conditions.
Revenue in September alone surged 14.2% year-on-year to T$837.1 billion, marking a new monthly record. Looking ahead, Foxconn expects operations to continue growing sequentially, driven by rising shipments of AI servers in the fourth quarter and the traditional holiday season demand in Western markets. The company cautioned, however, that political and economic volatility, along with exchange rate fluctuations, will require close monitoring.
Record Q3 Revenue and Q2 2025 Financial Performance Highlights
The company also released its Q2 2025 consolidated financial statements, offering insights into profitability and growth momentum:
- Revenues: T$1.793 trillion, up 9% quarter-on-quarter and 16% year-on-year
- Gross Profit: T$113.5 billion, an increase of 13% QoQ and 14% YoY
- Operating Income: T$56.6 billion, rising 22% QoQ and 27% YoY
- Net Profit: T$44.4 billion, up 5% QoQ and 27% YoY
- Earnings Per Share: T$3.19 versus T$3.03 in Q1
Margin performance showed steady improvement as well:
- Gross Profit Margin: 6.33% (up 22 bps QoQ)
- Operating Profit Margin: 3.16% (up 33 bps QoQ)
- Net Profit Margin: 2.47% (slightly down 9 bps QoQ, but up 21 bps YoY)
Foxconn shares have risen 23% so far in 2025, outperforming the broader Taiwan stock market’s 16% gain. Ahead of the revenue announcement, Foxconn’s stock closed 0.44% higher on Friday, while the benchmark index advanced 1.45%. The company will publish its third-quarter earnings on November 12, when investors will gain further clarity on profitability, margins, and the outlook for its AI-driven growth strategy.With its Record Q3 Revenue, Foxconn demonstrated its strength in adapting to shifting global technology demands. Yet, challenges tied to currency volatility and geopolitical risk remain central factors shaping its path in the months ahead.
