Foxconn reports record third-quarter profit as AI demand soars

Taipei [Taiwan], November 12 (ANI): Hon Hai Precision Industry Co., the parent company of Foxconn, on Wednesday reported its highest-ever third-quarter net profit, fueled by the growing global demand for artificial intelligence servers, according to a report by Focus Taiwan.

The Taiwan-based company said its net profit for the July-September quarter increased 17 per cent year-on-year to NT$57.67 billion (approximately USD 1.86 billion). The figure also marked a 30 per cent increase from the previous quarter, underscoring the firm's strong performance amid the accelerating AI boom. Earnings per share stood at NT$4.15 (USD 0.13), compared to NT$3.55 (USD 0.11) in the same period last year.

Foxconn said its consolidated sales increased 11 per cent from the previous year and 14.47 per cent from the previous quarter, reaching a record NT$2.06 trillion (approximately USD 66.56 billion). The company attributed the surge to robust demand for AI-related products, especially servers used in cloud computing and data centers.

The cloud and networking division accounted for 42 per cent of total third-quarter sales, up from 41 per cent in the previous quarter. Meanwhile, its smart consumer electronics segment contributed 37 per cent of total sales, up from 35 per cent a quarter ago. However, the computing division's share fell to 15 per cent from 18 per cent, while electronic components held steady at 6 per cent.

Foxconn's profitability indicators also showed steady improvement. Its gross margin, the difference between revenue and the cost of goods sold, rose to 6.35 per cent, the highest in five quarters. The company's operating margin climbed to 3.43 per cent, the strongest since the first quarter of 2019, while its net margin increased to 2.8 per cent from 2.66 per cent a year earlier.

In the first nine months of this year, Hon Hai reported total consolidated sales of about NT$5.50 trillion (USD 177.65 billion), with AI servers contributing NT$1 trillion (USD 32.30 billion) to that figure. The company said this trend highlights how artificial intelligence technologies are transforming global manufacturing and driving new sources of revenue. (ANI)

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