Foxconn’s Q2 Profit Surges 27% on AI Server Demand, Outperforming Market Expectations

Taiwan's Foxconn, the world's largest contract electronics manufacturer, reported a 27% year-on-year increase in second-quarter profit, reaching T$44.4 billion ($1.48 billion). The result surpassed analyst estimates of T$38.8 billion, driven by robust demand for artificial intelligence servers.

The company's cloud and networking division, which includes AI server production, overtook its consumer electronics business for the first time. Foxconn anticipates AI server revenue will grow more than 170% year-on-year in Q3, maintaining its full-year guidance for significant revenue growth.

While geopolitical risks and currency fluctuations remain concerns, the earnings beat underscores how traditional electronics manufacturers are capitalizing on the AI infrastructure boom. Foxconn's performance serves as a bellwether for hardware demand in both consumer tech and enterprise computing sectors.