Foxconn's Q3 revenue hits record-high, up 20% YoY to $57.3B
What's the story
Foxconn, the world's leading contract electronics manufacturer and Apple's primary iPhone assembler, has reported its highest-ever third-quarter revenue. The Taiwan-based company announced a significant 20.2% year-on-year increase in its revenue to T$1.85 trillion ($57.3 billion). This financial performance surpassed both the company's own projections for substantial growth and a T$1.79 trillion LSEG SmartEstimate, which prioritizes predictions from consistently accurate analysts.
Revenue drivers
AI server demand fuels Foxconn's revenue growth
The surge in Foxconn's revenue was primarily driven by robust demand for artificial intelligence (AI) servers. This increased demand significantly contributed to the company's cloud and networking products division, which also serves AI chip firm NVIDIA. Despite new product launches driving strong quarter-on-quarter growth for smart consumer electronics like iPhones, the year-on-year performance remained steady.
Revenue peak
September revenue reaches 2nd-highest level
Foxconn's total revenue for September alone reached T$733 billion, marking a 10.9% year-on-year increase and the second-highest ever level for that month. The company stated, "Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum." However, it did not provide specific numerical forecasts for its future performance.
Stock performance
Foxconn's shares outperform broader Taiwan market
Foxconn's shares have seen a significant rise of 86% this year, vastly outperforming the broader Taiwan market's 24% increase. The company's stocks closed up 3.7% on Friday ahead of the revenue data release, defying a 0.4% fall on the benchmark index. Foxconn is set to report its full third-quarter earnings on November 14, and has scheduled its annual Tech Day for October 8-9, where it typically announces new products or partnerships.