Foxconn profit drops but strong growth expected
Taiwan’s Foxconn, the world’s largest contract electronics maker and top assembler for Apple, reported a 2% drop in quarterly profit on Monday, missing estimates, but said it expects strong revenue growth for the first quarter and full year 2026.
The company posted a fourth-quarter net profit of T$45.21 billion ($1.42 billion), compared with analyst estimates of T$63.86 billion, despite a 22% jump in revenue driven by robust global demand for AI products. Foxconn said higher tax rates contributed to the decline, News.Az reports, citing Reuters.
Foxconn Chairman Young Liu highlighted AI servers as a key growth driver, predicting the global AI industry could reach $1 trillion over the next two to three years. The company, which expects to capture a 40% market share in AI servers, also forecast strong first-quarter revenue in smart consumer electronics, despite a potential slowdown in the PC sector.
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However, Liu noted external challenges remain, including geopolitical tensions, particularly the ongoing conflict in the Middle East, which could affect global supply chains.
Foxconn has been benefiting from a data center boom, supplying AI infrastructure to tech giants like Amazon, Microsoft, and Google. It is also expanding production of AI servers in Mexico and Texas, while shifting most iPhone assembly for the U.S. market from China to India.
The company is exploring growth in electric vehicles but has faced setbacks, including the planned sale of its Lordstown, Ohio, factory for $375 million. Foxconn shares have fallen 6% so far this year, underperforming the Taiwan benchmark index.
By Aysel Mammadzada
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