Apple Supplier Foxconn Sees Profit Soar 27% To $1.47 Billion As AI Server Boom, iPhone Demand Fuel Record Growth

Editor's note: This article has been updated with the latest numbers following Foxconn's second-quarter results release.

Taiwan’s Hon Hai Precision Industry Co. Ltd. HNHPF, known globally as Foxconn, reported second-quarter 2025 net profit jumped 27% year-over-year to TWD 44.4 billion ($1.47 billion), driven by explosive demand for artificial intelligence servers and sustained iPhone production for Apple Inc. AAPL.

Record Revenue Growth Fueled by AI Infrastructure

The world’s largest contract electronics manufacturer posted second-quarter revenue of TWD 1.79 trillion ($59.6 billion), marking a 16% increase from the prior year period, according to company financial statements released on Thursday. Operating income surged 27% to TWD 56.6 billion, while gross profit margin improved to 6.33% from 6.42% in the same quarter last year.

Foxconn’s AI server division delivered exceptional growth, with second-quarter revenue increasing more than 60% year-over-year. The company projects third-quarter AI server revenue to surge over 170%, with rack shipments expected to grow 300% quarter-over-quarter.

Strong Performance Across All Business Segments

The electronics giant’s diversified portfolio showed strength across key segments. Smart Consumer Electronics Products, which includes iPhone manufacturing, maintained robust performance alongside Cloud and Networking Products that benefited from AI infrastructure buildout.

Strategic AI Infrastructure Expansion

Foxconn announced full-year AI server revenue is expected to exceed NT$1 trillion, reflecting continued strong demand projected into 2026. The company strengthened its modular data center capabilities through a strategic alliance with TECO Electric & Machinery, acquiring a 10% stake to enhance one-stop AI infrastructure solutions.

“AI market continues strong demand in 2026,” the company stated, positioning itself to capitalize on the infrastructure boom supporting artificial intelligence applications for major clients, including Nvidia Corp. NVDA.

Operational Efficiency and Future Outlook

Despite revenue growth, Foxconn improved working capital management with accounts receivable turnover days declining to 51 from 61 in the previous quarter. Cash conversion cycle improved to 48 days from 51 days quarter-over-quarter.

The company maintains operations across multiple continents, with significant iPhone production now based in India rather than China, supporting Apple’s supply chain diversification strategy amid ongoing U.S.-China trade considerations.Price Action: Foxconn shares have gained 9.32% year-to-date to TWD 119.50 ($3.99), outperforming Taiwan’s broader market index gain of 5.8%.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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