Foxconn Reports 46% Revenue Growth as AI Mix Expands

Hon Hai Precision Industry, known as Foxconn, reported third-quarter revenue of NT$3.02 trillion, up 46% from a year earlier, and net profit of NT$77.52 billion, up 34%, as cloud and networking products expanded their share of sales.

The company’s results, released November 12, showed cloud and networking accounted for 54% of revenue in the quarter, compared with 51% in the second quarter. The segment includes AI servers and server racks. Foxconn said its core businesses, including AI servers and AI racks, grew more than expected.

Chairman Young Liu said he expects cloud and networking to exceed 60% of revenue within three to five years. He pointed to increasing investment in AI infrastructure by large cloud providers as a source of demand for the company’s products.

Foxconn expects AI rack shipments to grow at a high double-digit rate quarter over quarter in the fourth quarter of 2026, according to its guidance. Its results presentation also forecasts high double-digit growth in rack shipments in 2027. These are company projections, not completed shipment results.

The company’s third-quarter operating income rose 64% year over year to NT$115.35 billion, while its operating margin...