Foxconn Reports Record Q3 Revenue

Foxconn has reported record third-quarter sales, spurred by rising demand for artificial intelligence (AI) servers. The business reported a 20.2 per cent year-on-year revenue increase to USD 1.85 trillion (USD 57.3 billion), beating market estimates.

The company claimed today that the results exceeded their initial forecasts of strong growth, indicating a great accomplishment for the company. Analysts predicted revenue of USD 1.79 trillion, according to LSEG's SmartEstimate, which prioritises projections from consistently reliable analysts.

The cloud and networking products segment of Foxconn, which serves clients such as AI chip giant Nvidia, outperformed expectations, thanks to strong demand for AI servers. This division contributed significantly to the overall revenue increase, assisting the corporation in achieving its greatest quarterly revenue to date. 

While Foxconn's smart consumer electronics sector, which includes iPhones, experienced good quarterly growth due to new product introductions, its year-over-year performance was flat. The third quarter is traditionally the start of a busy period for Taiwanese technology companies, as they prepare to supply items such as smartphones and tablets to Western markets for the holiday season.

Foxconn's sales in September alone hit USD 733 billion, a 10.9 per cent year-on-year growth and the company's second-highest monthly total in history. 

"Entering the peak season in the second half of the year, we anticipate our operations to gain momentum," Foxconn stated in a statement about its current quarter outlook. The company expects fourth-quarter performance to be in line with market expectations, although it did not disclose exact numerical estimates. 

The firm's stock price has risen by 86 per cent year to date, well outpacing the 24 per cent growth in the broader Taiwan market. Shares climbed 3.7 per cent on Friday ahead of the revenue release, bucking a 0.4 per cent drop in the benchmark index.

The company will report its full third-quarter earnings on 14 November. The corporation also plans to hold its annual Tech Day on 8-9 October, when it usually reveals new products and partnerships.