Foxconn forecasts strong revenue growth even as profit lags forecasts
The fall comes despite robust global demand for AI products
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[TAIPEI] Taiwan’s Foxconn, the world’s largest contract electronics-maker, said on Monday (Mar 16) it expected strong revenue growth in the first quarter and the whole of 2026, even as it posted a fall of 2 per cent in quarterly profit, lagging behind estimates.
The tech giant, Nvidia’s biggest server-maker and Apple’s top iPhone assembler, did not give a reason in its statement for the decrease in profit.
The fall came despite robust global demand for artificial-intelligence (AI) products.
Foxconn’s guidance is for “strong growth” for both the first quarter and full-year revenue – the highest outlook the company can give, as it does not provide a numerical value for it.
It is also the first time the company has provided an outlook for FY2026.
Foxconn said its growth would be driven by sustained strong demand for AI servers.
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Net profit for the October-to-December period was NT$45.2 billion (S$1.8 billion), lower than a London Stock Exchange Group consensus estimate of NT$63.9 billion.
The tech giant said it also expected first-quarter revenue for smart consumer electronics to experience significant growth year on year.
Foxconn will hold its earnings call later on Monday in Taipei, during which it is also expected to update its outlook for the year.
The company, formally called Hon Hai Precision Industry, reported record fourth-quarter revenue in January on strong demand for AI products.
Most of the iPhones Foxconn makes for Apple are assembled in China, but it now produces the bulk of those sold in the US in India.
It is also building factories in Mexico and Texas to make AI servers for Nvidia.
The company has been looking to expand its footprint in electric vehicles (EVs), which it sees as a major generator of future growth, though that has not always gone smoothly.
In August, it said it struck a deal to sell a former car factory in Lordstown, Ohio, for US$375 million, including its machinery that it bought in 2022 to make EVs.
Foxconn’s shares have dropped 6 per cent so far in 2026, underperforming a gain of 15 per cent in Taiwan’s benchmark index.
Its shares closed up 0.9 per cent on Monday ahead of the results. REUTERS
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