Foxconn Q2 update: Taiwan-based Foxconn or Hon Hai Precision Industry Co earned record revenue in the second quarter, driven by high demand for artificial intelligence products, while also warning about potential challenges from geopolitical issues and exchange rate fluctuations, reported news agency Reuters.
The revenue of the world’s largest contract electronics maker has surged 15.82% on a year-on-year basis to T$1.79 trillion, according to a company statement, cited by the agency. The company beat the T$1.7896 trillion LSEG SmartEstimate.
Foxconn, Apple iPhones’ largest assembler in the world and leading clients such as chipmaker Nvidia, stated that rising demand for AI-driven products has contributed to strong revenue growth for its cloud and networking products division.
However, smart consumer electronics, including iPhones, reported “flattish” year-on-year revenue growth impacted by exchange rates, the agency quoted the company.
Foxconn’s revenue for June jumped 10.09% year-on-year to T$540.237 billion, a record high for the month.
Foxconn stated it expects growth this quarter compared to the previous three months and the same period last year, but also warned about possible risks to growth.
“The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” Reuters quoted Foxconn.
Notably, US President Donald Trump announced he had signed letters to 12 countries, detailing the tariffs they would face on exports to the US. These “take it or leave it” offers are scheduled to be sent out on Monday.
Foxconn operates the world’s largest iPhone manufacturing plant in Zhengzhou, China. The tech giant has not released numerical forecasts. It will report full second-quarter earnings on August 14.
Foxconn’s shares surged 76% last year, significantly outpacing the Taiwan market’s 28.5% increase. However, they have decreased by 12.5% so far this year, due to broader pressures on tech stocks amid Trump’s trade policies, the report said.
On Friday, Foxconn shares closed down 1.83% before the revenue data release, compared with a 0.73% fall of the benchmark index.
