Taiwan’s Foxconn, the world’s largest contract electronics maker, reported record second-quarter income on robust demand for synthetic intelligence merchandise however cautioned about geopolitical and exchange rate headwinds.
Revenue for Apple’s greatest iPhone assembler jumped 15.82% year-on-year to T$1.797 trillion, Foxconn mentioned in an announcement on Saturday, beating the T$1.7896 trillion LSEG SmartEstimate, which supplies higher weight to forecasts from analysts who’re extra persistently correct.
Robust AI demand led to robust income development for its cloud and networking merchandise division, mentioned Foxconn, whose clients embrace AI chip agency Nvidia.
Smart shopper electronics, which incorporates iPhones, posted “flattish” year-on-year income development affected by exchange charges, it mentioned.
June income roses 10.09% on yr to T$540.237 billion, a record excessive for that month.
Foxconn mentioned it anticipates development on this quarter from the earlier three months and from the identical interval final yr however cautioned about potential risks to development.
“The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” it mentioned with out elaborating.
U.S. President Donald Trump mentioned he had signed letters to 12 nations outlining the varied tariff ranges they might face on items they export to the United States, with the “take it or leave it” provides to be despatched out on Monday.
The Chinese metropolis of Zhengzhou is house to the world’s largest iPhone manufacturing facility, operated by Foxconn.
The firm, formally referred to as Hon Hai Precision Industry, doesn’t present numerical forecasts. It will report full second quarter earnings on August 14.
Foxconn’s shares jumped 76% final yr, far outperforming the 28.5% rise for the Taiwan market, however are down 12.5% to this point this yr, reflecting broader stress on tech shares rattled by Trump’s tumultuous commerce coverage.
The inventory closed down 1.83% on Friday forward of the income knowledge launch, in contrast with a 0.73% drop for the benchmark index.
