Foxconn profit jumps 19% as AI demand drives record revenue
Foxconn’s first-quarter profit rose 19% to NT$49.9 billion as AI server demand pushed revenue to a record NT$2.12 trillion.
Foxconn’s first-quarter profit climbed 19% to NT$49.9 billion, a sharp signal that the AI buildout is now driving the world’s biggest contract electronics maker as much as smartphones once did. Revenue reached a record NT$2.12 trillion in the January-March period, while operating profit rose 63% from a year earlier and both gross margin and operating margin improved.
The numbers point to a company being pulled deeper into the physical backbone of artificial intelligence. Foxconn, best known as Apple’s largest iPhone assembler, also said first-quarter revenue rose 29.68% year on year in its monthly report, with March revenue hitting NT$803.7 billion, the highest ever for that month. The company’s earnings release put the first-quarter revenue total at NT$2.12 trillion, underscoring the scale of the surge.
AI hardware is now Foxconn’s most important growth engine. The company said demand was driving strong quarter-on-quarter and year-on-year growth in the second quarter and left its full-year 2026 outlook for strong growth unchanged. Rotating CEO Michael Chiang told investors that major cloud service providers had recently increased capital-spending plans, and Foxconn expects its own capital expenditures to rise 30% this year from NT$174 billion in 2025 as it expands capacity for AI servers.
That spending is tied to a broader change in global manufacturing. Foxconn said AI server rack shipments should more than double this year, while demand for GPU servers and customized ASIC servers remains strong. General-purpose servers are also expected to benefit as new AI data-center deployments spread across the market. Foxconn has also pointed to nearly US$600 billion in capital expenditure by the top five U.S. cloud service providers in 2026 as evidence that the infrastructure race is still accelerating.
The shift matters well beyond Foxconn’s balance sheet. Taiwan has long been central to the global electronics supply chain, and Foxconn’s latest results reinforce how the island remains indispensable in the race to build AI hardware at scale. The company is also widening its manufacturing footprint beyond China, saying it now assembles most iPhones sold in the United States in India and is building factories in Mexico and Texas to make AI servers for Nvidia.
Even with the strong quarter, Foxconn has warned that geopolitical developments, supply-chain adjustments and swings in raw materials can still pressure the industry. Chairman Young Liu has said prolonged conflict in West Asia could push up oil and raw-material costs. For now, though, the message from Foxconn is clear: AI is no longer a side business, but the force reshaping the company, Taiwan’s industrial role and the global competition to build the hardware that powers the next wave of computing.
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