Foxconn Q4 Profit Misses Estimates on Tax Hit, AI Drives Revenue

Taipei, Taiwan - Taiwan's Foxconn, the world's largest contract electronics manufacturer, reported a 2 percent decline in fourth-quarter 2025 net profit to NT$45.21 billion ($1.41 billion), falling short of analyst expectations, even as revenue surged 22 percent year-over-year to a record NT$2.606 trillion on March 16, 2026.

The profit miss, which trailed consensus estimates of NT$60.88 billion from FactSet and NT$63.86 billion from LSEG, stemmed primarily from a higher effective tax rate that compressed margins. Gross profit margin slipped to 5.88 percent from 6.15 percent a year earlier. Despite the earnings shortfall, the company highlighted robust demand for artificial intelligence infrastructure as the key driver of its top-line growth. Cloud and networking products, including AI servers, accounted for 42 percent of quarterly revenue, up slightly from 41 percent in the second quarter and marking the segment's position as Foxconn's largest revenue contributor, surpassing consumer electronics.

Foxconn assembles iPhones for Apple and produces server hardware for Nvidia, with manufacturing operations in India handling most U.S.-bound iPhones. The company is also expanding...