Foxconn profit jumps 34% on AI servers, beating forecasts
Foxconn, Nvidia's biggest server maker and Apple's main iPhone assembler, said Thursday its third-quarter net profit rose 34% to about $2.35 billion, beating forecasts, and it expects strong AI growth next year despite tight supplies of chips and memory.
AI-assisted · US Brief desk · Sources listed below
What happened
Foxconn, formally Hon Hai Precision Industry, reported net profit of T$77.5 billion (about $2.35 billion) for July through September, up 34% from a year earlier. That beat the LSEG analyst consensus of T$69.6 billion, Reuters reported. In October the company had reported third-quarter revenue up 47%.
Why it matters
Foxconn builds most of Nvidia's AI servers and is building factories in Mexico and Texas to make more, so its outlook is a read on AI spending from the factory floor. The report lands after Nvidia founder Jensen Huang resigned as chief executive, president and a director (US Brief: https://us-brief.com/article/tech-nvidia-board-meets-on-ousting-huang-shares-drop). Foxconn also now makes most U.S.-bound iPhones in India.
More context
What it said about next year: Foxconn stuck with its forecast of "strong" revenue growth this year and said AI demand stays strong into 2027. It expects "high double-digit growth" in AI rack shipments next year. Chairman Young Liu said cloud and networking products are more than 50% of revenue this year and should top 60% within three to five years.
The warning: Liu said chips, memory and some key components are in tight supply across the industry and he is cautious on PCs. "Overall demand is expected to still exceed supply next year, and the tight supply-demand situation may persist for some time," he said. He said the U.S. midterm results would likely have a limited short-term effect on the industry.
By the numbers: Foxconn shares closed down 0.8% Thursday before the results, while Taiwan's main index fell 2.6%. The stock is up 4% this year against a 49% gain for the index, Reuters reported.
What would change the story: Signs that cloud companies are trimming 2027 AI budgets, or parts shortages that delay rack shipments. Foxconn gives no numeric forecasts, so its next monthly sales report is the next check.
4 listed sources
- Reuters via Investing.com (Wen-Yee Lee, Yimou Lee, Ben Blanchard), Taiwan's Foxconn bullish on outlook but warns about supply chain tightness, Nov. 12, 2026
- AFP, Tech giant Foxconn beats forecasts with third-quarter profit jump, Nov. 12, 2026
- Focus Taiwan (CNA), Hon Hai's Q3 net profit hits record high amid AI boom, Nov. 12, 2026
- US Brief, Nvidia CEO Jensen Huang resigns; CFO Kress named interim chief
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Profit, forecast and quotes are from Reuters. The U.S. dollar figure uses Reuters' rate of T$32.974 per dollar. The company does not give numeric forecasts. The hero photo shows Foxconn's Dingpu plant in New Taipei (file photo, 2016).
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