Foxconn Reports 19% Increase in Quarterly Profit Driven by AI Server Demand
Foxconn, also known as Hon Hai Precision Industry, reported a net profit of NT$49.9 billion (US$1.6 billion) for Q1 2026, a 19% increase year-on-year. The company anticipates sustained strong demand for AI servers, projecting high double-digit growth in shipments for Q2 2026.
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Foxconn's quarterly net profit for January-March 2026 reached NT$49.9 billion (US$1.6 billion), surpassing analyst estimates. The company expects AI server shipments to grow by double digits in Q2, with these servers already constituting over 50% of total server revenue.
Capital expenditure is projected to rise by over 30% in 2026, fueled by regional manufacturing expansion and automation. Foxconn's CPO switch shipments are set to enter mass production in Q3, targeting a total of 10,000 units for the year.
The company's AI solutions are expected to see quarterly growth, and it holds a 40% share of the global AI server market. Challenges remain, including a recent cyberattack on North American factories, but the strong demand for AI products may mitigate risks associated with geopolitical tensions.
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