Foxconn Reports 2% Drop in Quarterly Profit, Forecasts Growth in AI Server Revenue for 2026
Foxconn reported a 2% decline in fourth-quarter profit, totaling T$45.21 billion, below analyst expectations. Despite this, the company anticipates strong revenue growth for 2026, driven by AI server demand and forecasts a 40% market share in AI servers. External challenges, including geopolitical tensions, may impact supply chains. Foxconn is expanding AI server production in Mexico and Texas and shifting iPhone assembly to India. The company expects revenue of over NT$9 trillion for 2026.
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Foxconn's fourth-quarter net profit fell 2% to T$45.21 billion, missing estimates, despite a 22% revenue increase due to AI product demand. The company forecasts strong revenue growth for 2026, targeting over NT$9 trillion.
Chairman Young Liu highlighted AI servers as a growth driver, predicting the global AI industry could reach $1 trillion in the next few years and aiming for a 40% market share. Foxconn faces challenges from geopolitical tensions affecting supply chains.
The company is expanding AI server production in Mexico and Texas and moving iPhone assembly to India. Despite setbacks in electric vehicle ventures, Foxconn continues to benefit from the data center boom, having partnered with tech giants like Amazon and Microsoft.
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