By Sherry Qin and Yang Jie
Foxconn Technology Group reported robust first-quarter revenue and profit as it ramped up production of server racks, other advanced equipment and consumer devices for the global artificial-intelligence buildout.
The Taiwanese company, formally known as Hon Hai Precision Industry, reported a 19% rise in net profit to 49.92 billion New Taiwan dollars, equivalent to US$1.58 billion on Thursday. That came roughly in line with the NT$49.76 billion expected by analysts, according to a FactSet poll.
Revenue rose 29% from a year earlier to NT$2.120 trillion.
Foxconn, the world's largest contract electronics maker, now generates a significant share of its revenue making AI servers for the likes of Nvidia and Amazon, becoming a key player in the AI revolution that has seen large tech companies pour billions of dollars in chips, servers and data centers.
Cloud and networking products--including AI servers--remained the company's largest revenue contributor in the three months ended March, while smart consumer electronics, accounted for a third of revenue.
Citi analysts expect AI server-related demand to continue to support its growth trajectory, cushioning the seasonal softness in other segments like consumer electronics.
Against a backdrop of rising memory costs, which is weighing on global consumer-electronics demand, the more-premium models by Foxconn's clients are likely to be less affected and could gain share in the smartphone market this year, Daiwa analysts noted.
As the largest assembler of iPhones, Foxconn has benefited directly from the surge in iPhone 17 upgrades, which helped drive Apple's second-quarter iPhone revenue sharply higher. As Apple works toward its first foldable device, Foxconn's manufacturing scale puts it in a strong position to absorb the added demand.
Write to Sherry Qin at sherry.qin@wsj.com and Yang Jie at jie.yang@wsj.com
(END) Dow Jones Newswires
05-14-26 0317ET
