Taiwan’s Foxconn reports 34% rise in Q3 profit, beats forecasts

Taiwan's Foxconn, the world's largest contract electronics maker, reported a significant 34% increase in third-quarter profit on Thursday, surpassing analyst forecasts. The company attributed its growth to the continued strong demand for AI, which it predicted would drive expansion this year and next. Net profit for July to September reached T$77.5 billion ($2.35 billion), compared to the LSEG consensus estimate of T$69.6 billion and a T$57.7 billion figure from the previous year.

Foxconn confirmed its earlier forecast of strong revenue growth for the year, noting robust AI demand throughout and into the following year. The company, which does not provide numeric forecasts for specific shipments, anticipated high double-digit growth in AI rack shipments for 2027. In October, Foxconn reported a 47% year-on-year jump in third-quarter revenue.

Apple's iPhones are primarily assembled in China, but Foxconn now produces most of those sold in the United States in India. The company is also constructing factories in Mexico and Texas for AI server production. Foxconn is exploring expansion opportunities in the electric vehicle sector. The company's shares have risen 4% so far this year, trailing behind the Taiwan index's 49% gain.

As of Thursday, Foxconn shares closed 0.8% lower ahead of the earnings release, while the broader index ended down 2.6%.