Foxconn's Q2 net profit rises 35%, with AI server revenue exceeding 50%

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Release Time: 08/12/2026 11:23:03

Summary

Foxconn's Q2 net profit rose 35% to TWD 59.97 billion, surpassing forecasts. AI server revenue reached 51% of total sales, fueled by strong demand in the AI and crypto sectors. Network upgrade projects also contributed to growth. Acting CEO Mike Peng said NVIDIA’s next-generation AI server will enter mass production in Q3. The company plans a 30% increase in capital expenditures in 2026 and will expand AI server and EV production in India, Mexico, and Texas. Foxconn’s stock is up 17% year-to-date.

ME AI News: On August 12, Taiwan’s Foxconn (Hon Hai Precision) released its second-quarter financial results, reporting a 35% year-over-year increase in net profit to NT$59.97 billion (approximately S$2.38 billion), surpassing analysts’ expectations of NT$58.8 billion. Revenue from cloud and networking products (including AI servers) accounted for 51% of total revenue, marking the first time this segment exceeded 50%, while smart consumer electronics (including iPhones) contributed 29%. Interim CEO Jiang Shang-yi stated that AI-related businesses are expected to continue growing in the third quarter, supported by the seasonal peak in ICT products, driving significant sequential growth. NVIDIA’s next-generation Vera Rubin AI server rack is set to enter mass production readiness in the third quarter, with shipments beginning in the fourth quarter and projected to become a core product for Foxconn next year. Additionally, Foxconn anticipates a 30% year-over-year increase in capital expenditures in 2026, with ongoing expansions of AI server and electric vehicle manufacturing capacity in India, Mexico, and Texas, USA. The company’s stock has risen 17% year-to-date and closed up 2.7% today. (Source: MLion)

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