Foxconn's Q2 results: Revenue jumps 39.8% YoY to $78.7B
What's the story
Foxconn, the world's largest contract electronics manufacturer, has reported a whopping 39.8% year-on-year increase in its second-quarter revenue. The surge was driven by strong demand for artificial intelligence (AI) products and exceeded market expectations. The company's revenue for the April-June quarter stood at T$2.513 trillion ($78.71 billion), beating LSEG SmartEstimate of T$2.372 trillion.
Division performance
Record revenue for June
The strong demand for AI products has also contributed to robust revenue growth in Foxconn's cloud and networking products division. The smart consumer electronics division, which includes iPhones, also witnessed "significant" growth during this period. The company reported a record revenue of T$821.8 billion for June alone, marking a 52.1% year-on-year increase, the highest ever for that month.
Future outlook
Growth expectations and cautionary notes
Looking ahead, Foxconn expects its operations to grow both quarter-on-quarter and year-on-year in the third quarter. The company also noted that AI racks will continue to show a growth trend. However, it did caution about the need to keep an eye on the impact of "volatile" global political and economic situations without going into details.
Market comparison
Stock performance and market comparison
Despite the stellar revenue growth, Foxconn's shares have only gained 4.3% this year, lagging behind the Taiwan market's impressive 61.5% rise. The company's stock closed up by 0.6% on Friday ahead of the revenue data release while the benchmark index ended flat for the day.