Foxconn third-quarter revenue soars on AI demand, beats market forecast

TAIPEI, Oct 5 — Taiwan's Foxconn, the world's largest contract electronics maker, reported ​on Monday a 47% jump in third-quarter revenue year-on-year that beat market estimates, fuelled by strong AI-related demand.

• ‌Revenue for the July-September quarter was T$3.03 trillion ($95.4 billion), well above an LSEG SmartEstimate ⁠of T$2.83 trillion that ​gives greater weight to forecasts ⁠from analysts who are more consistently accurate.

• Strong AI demand ‌led to robust ‌revenue growth for its cloud and networking products division, ⁠while smart consumer electronics, which ⁠include iPhones, posted significant growth, the company said.

• September revenue alone rose 38% year-on-year to T$1.16 trillion, a record for a single month and the first time it has surpassed T$1 trillion on a monthly basis.

• AI-related operations ‌are expected to continue growing in the ​fourth quarter, the company said.

• Together with the traditional peak season for electronics products in the second half of the year, this should "support overall performance in line with current market expectations," it said

• But it added that "it remains necessary to monitor the impact of a volatile global political ​and economic environment".

• Foxconn, formally called Hon Hai Precision Industry, does ‌not provide numerical ‌forecasts. ⁠It will report full third-quarter earnings on November 12.

• The company's shares have gained 10% this year, underperforming a 72% rise for the Taiwan market. The stock closed up 1.2% on ‌Monday ahead of the ​revenue data release. The benchmark ‌index ended the day ⁠2.6% higher.

($1 = ​31.7640 Taiwan dollars)

(Reporting by Ben Blanchard; Editing by Christopher Cushing and ​Edwina Gibbs)

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