Foxconn Reports Record Q4 Revenue Surge

Foxconn posted record fourth‑quarter revenue driven by strong global demand for AI‑related hardware.
The company saw double‑digit growth across key divisions, even as some consumer electronics segments softened.
Its performance sets a high benchmark heading into 2026, with AI server demand expected to remain a major growth driver.

AI Demand Pushes Revenue to New Highs

Foxconn reported that its fourth‑quarter revenue rose 22.07% year‑on‑year to T$2.6028 trillion, reaching the highest level in its history. The results surpassed the T$2.418 trillion LSEG SmartEstimate, which weights forecasts from analysts with strong accuracy records. Revenue also increased on both quarterly and annual bases, exceeding internal expectations and creating a challenging comparison point for early 2026. The company attributed much of the growth to rising demand for artificial intelligence products.

On a U.S. dollar basis, Foxconn’s fourth‑quarter revenue climbed 26.4%. The company is Nvidia’s largest server manufacturer and Apple’s primary iPhone assembler, giving it a central role in global electronics supply chains. Its cloud and networking division delivered particularly strong results as AI server demand accelerated. Meanwhile, the smart consumer electronics segment posted a slight decline due to unfavorable exchange rates.

December alone saw revenue reach T$862.86 billion, up 31.77% from the previous year and marking a record for the month. This surge reflects continued momentum in AI‑related infrastructure spending. Seasonal slowdowns in information and communications technology products are expected in the first quarter. Even so, Foxconn anticipates AI server rack demand will keep performance near the upper end of its five‑year range.

Foxconn, formally known as Hon Hai Precision Industry, does not issue numerical forecasts. The company plans to report full fourth‑quarter earnings in March. Its shares rose 25.3% over the past year, matching the broader Taiwan market. The stock closed up 1.08% on Monday ahead of the revenue announcement.

Cloud and Networking Divisions Lead Growth

The company’s cloud and networking products division was the primary engine behind its record quarter. AI‑driven workloads have increased demand for high‑performance servers, benefiting Foxconn as a major supplier to global technology firms. Enterprises and cloud providers continue to expand infrastructure to support generative AI and machine learning applications. This trend has strengthened Foxconn’s position in the data center supply chain.

Consumer electronics, traditionally a major revenue source, showed weaker performance. Exchange rate fluctuations contributed to a slight decline in the segment that includes iPhone assembly. Despite this, overall revenue growth remained strong due to the scale of AI‑related orders. The shift highlights how Foxconn’s business mix is evolving.

Quarterly results also reflect broader industry trends. AI hardware demand has surged across global markets, driving investment in server racks, accelerators and networking equipment. Foxconn’s manufacturing capacity positions it to benefit from this shift. The company expects these dynamics to continue influencing its performance in 2026.

Analysts note that Foxconn’s diversification into cloud and networking products has reduced its reliance on consumer electronics cycles. This strategy has helped stabilize revenue during periods of smartphone market softness. AI infrastructure spending is expected to remain robust. Foxconn’s results suggest it is well‑positioned to capture future growth.

Market Reaction and Outlook for 2026

Investors responded positively to the company’s performance. Foxconn’s stock gained 1.08% on Monday ahead of the revenue release, compared with a 2.57% rise in Taiwan’s benchmark index. The company’s 25.3% share price increase over the past year reflects confidence in its long‑term prospects. Market observers expect AI‑related demand to remain a key driver in the coming quarters.

The company acknowledged that the first quarter typically brings seasonal slowdowns in ICT products. However, strong AI server demand is expected to offset some of this softness. Foxconn anticipates performance will remain near the upper end of its historical range. This outlook underscores the growing importance of AI infrastructure in its business model.

Foxconn’s role as a major supplier to Nvidia and Apple continues to shape its revenue profile. AI server racks have become one of the fastest‑growing product categories. The company’s manufacturing scale allows it to meet rising global demand. Its ability to adapt to shifting market conditions remains a competitive advantage.

The company will provide more detailed financial results in March. Analysts will be watching for updates on margins, capital expenditure and AI‑related production capacity. These factors will help determine how Foxconn navigates the next phase of industry growth. The record quarter sets a strong foundation for 2026.