The world’s largest contract electronics manufacturer posted stronger-than-expected earnings for the first quarter, with profits climbing 19% compared to the same three-month period last year, driven by robust worldwide appetite for artificial intelligence technology.
Foxconn, officially known as Hon Hai Precision Industry, announced Thursday that its January through March net earnings reached T$49.92 billion ($1.58 billion), surpassing analyst predictions of T$48.88 billion according to LSEG consensus estimates.
The Taiwan-based company, which serves as Nvidia’s primary server manufacturer and Apple’s leading iPhone assembler, maintained its earlier projection of “strong” revenue growth for the current year in its earnings statement. The firm also highlighted robust demand for AI servers, though it does not provide specific numerical forecasts.
The electronics giant had previously announced in April that its first-quarter revenue jumped 30% year-over-year.
While Foxconn assembles most Apple iPhones in China, the majority of devices sold in the United States are now manufactured in India. The company is currently constructing production facilities in Mexico and Texas dedicated to producing AI servers for Nvidia.
The manufacturer has been pursuing expansion into the electric vehicle sector, viewing it as a significant opportunity for future growth, though this venture has faced some challenges.
Last August, Foxconn announced the sale of a former automotive manufacturing facility in Lordstown, Ohio, for $375 million, including equipment. The company had acquired this plant in 2022 with plans to produce electric vehicles.
Company executives were scheduled to conduct an earnings conference call later Thursday in Taipei.
Foxconn’s stock has gained 6% year-to-date, though this performance trails the broader Taiwan market index, which has surged 44%.
Shares declined 2.6% Thursday prior to the earnings announcement.
