Foxconn Surpasses Q1 Earnings Expectations as AI Server Business Fuels Growth

TLDR

• Hon Hai Precision reported first-quarter net earnings of T$49.92 billion ($1.58 billion), a 19% year-over-year increase that surpassed analyst projections.
• AI server production served as a primary growth catalyst, with the company manufacturing and assembling Nvidia’s latest-generation server infrastructure.
• First-quarter revenue surged approximately 30% to reach T$2.13 trillion, extending the manufacturer’s robust growth trajectory.
• The electronics giant reaffirmed its annual outlook for “strong” revenue expansion and highlighted persistent AI server market demand.
• Shares have climbed 6% in 2025, though trailing Taiwan’s benchmark equity index, which has advanced 44% during the identical timeframe.

Hon Hai Precision Industry, widely recognized as Foxconn, delivered first-quarter financial results exceeding market expectations on Thursday, propelled by robust artificial intelligence server demand.

The company’s net earnings for the quarter concluded March 31 totaled T$49.92 billion ($1.58 billion). This represented a 19% increase compared to the corresponding quarter last year and surpassed the LSEG consensus projection of T$48.88 billion.

Results also exceeded Bloomberg’s analyst estimate of T$48.43 billion, demonstrating the quarter’s exceptional performance.

Foxconn Technology Co., Ltd. (2354.TW)

First-quarter revenue increased nearly 30% year-over-year to T$2.13 trillion, matching preliminary figures the manufacturer disclosed in April.

As the global leader in contract electronics manufacturing, Foxconn occupies a critical position in two essential hardware ecosystems — artificial intelligence infrastructure and consumer technology devices.

The manufacturer serves as Nvidia’s primary server assembly partner and constructs the semiconductor company’s most sophisticated AI server platforms. Additionally, as Apple’s principal iPhone manufacturer, the company benefited from enhanced smartphone sales during the previous two quarters.

Artificial Intelligence Infrastructure Powers Revenue Expansion

AI infrastructure has emerged as the company’s most significant revenue driver. Foxconn is establishing manufacturing facilities in Mexico and Texas specifically designed for assembling AI servers for Nvidia, indicating substantial long-term commitment to this market segment.

In Thursday’s earnings announcement, the company maintained its current guidance, projecting “strong” annual revenue growth. Foxconn traditionally refrains from issuing specific numerical forecasts.

Management indicated that robust AI server market demand persists, consistent with recent quarterly reports from Nvidia and other supply chain collaborators.

Geographical Diversification of iPhone Manufacturing

Regarding consumer electronics operations, Foxconn has been redistributing iPhone manufacturing locations. Although Chinese facilities continue assembling most iPhone units globally, the company now manufactures the majority of devices destined for American consumers in India.

This strategic repositioning reflects both geopolitical considerations and Apple’s initiatives to mitigate supply chain concentration vulnerabilities.

Electric Vehicle Strategy Experiences Mixed Results

Foxconn has also targeted electric vehicles as a potential growth sector, though developments have been inconsistent. Last August, the manufacturer agreed to divest a former EV production facility in Lordstown, Ohio, for $375 million — a property acquired in 2022 for electric vehicle manufacturing purposes. Subsequently, the company has redirected attention toward alternative EV collaborations and robotics initiatives.

Share Performance Underperforms Regional Benchmark

Foxconn’s equity has appreciated approximately 6% year-to-date. This performance lags considerably behind Taiwan’s broader stock market index, which has rallied 44% during the comparable period.

On Thursday, prior to the earnings disclosure, shares concluded trading 2.6% lower.

The manufacturer conducted its quarterly earnings conference call later that day from its Taipei headquarters.

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