Taiwan’s Foxconn, the world’s largest contract electronics manufacturer and Apple’s primary iPhone assembler, reported record-breaking second-quarter revenue, driven by surging global demand for artificial intelligence products.
However, the company also sounded a note of caution, citing mounting geopolitical tensions and exchange rate fluctuations as potential risks to its outlook, News.Az reports, citing Reuters.
Foxconn’s Q2 revenue rose 15.82% year-on-year to T$1.797 trillion ($55.2 billion), outperforming market expectations. The figure beat the T$1.7896 trillion forecast from LSEG’s SmartEstimate, which prioritizes consistently accurate analyst predictions.
The company attributed the record performance largely to strong demand in its cloud and networking division, which includes servers and infrastructure linked to AI computing. This segment, supported by clients such as Nvidia, was the standout performer during the quarter.
However, the smart consumer electronics segment, which includes Apple's iPhone, showed "flattish" year-on-year revenue, due in part to foreign exchange headwinds.
In June alone, monthly revenue rose 10.09% year-on-year to T$540.237 billion, marking a record high for the month of June.
Looking ahead, Foxconn said it expects growth in the third quarter, both on a quarterly and annual basis. However, the company underscored potential headwinds:
“The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” Foxconn said in a statement, without elaborating.
The cautious tone follows an announcement by U.S. President Donald Trump, who revealed he has signed letters to 12 countries outlining new tariffs on their exports to the U.S., calling the proposals “take it or leave it” offers. The letters are set to be delivered Monday.
This escalation in Trump’s trade policy has added uncertainty to global tech supply chains. Foxconn’s major manufacturing hub is in Zhengzhou, China, home to the world’s largest iPhone assembly plant — putting it directly in the spotlight amid U.S.-China trade tensions.
Despite a 76% stock surge in 2024, Foxconn shares have fallen 12.5% so far in 2025, underperforming the broader Taiwan stock market, which is down 0.73%. The company's stock closed down 1.83% on Friday, ahead of the revenue announcement.
Foxconn, formally known as Hon Hai Precision Industry Co., will release its full Q2 earnings on August 14, though it does not issue numerical guidance.
As global demand for AI infrastructure grows, Foxconn remains well-positioned to benefit — but the evolving landscape of trade policy, foreign exchange volatility, and geopolitical risk could shape its trajectory in the coming quarters.
