Nvidia Supplier Foxconn Posts Record Q3 Profit as AI Fuels Growth

Hon Hai Precision Industry (also known as Foxconn) reported record-high revenue and profit for the third quarter of FY25, achieving its strongest performance in the period yet across gross, operating, and net income levels.

The surge in earnings was driven by accelerated AI-related spending from major tech companies. Foxconn said it remains optimistic about the continued growth of its AI and smart consumer electronics segments, expecting strong momentum both quarter-on-quarter and year-on-year.

Foxconn Q2 Financials

In the July-September quarter, Foxconn posted revenue of NT$2.06 trillion, up 11% year-on-year. Gross profit rose 14% to NT$130.8 billion, operating profit surged 29% to NT$70.5 billion and net profit attributable to shareholders climbed 17% to NT$57.7 billion.

On a sequential basis, revenue, gross profit, operating profit, and net profit grew by 15%, 15%, 25%, and 30%, respectively. Earnings per share (EPS) came in at NT$4.15, up from NT$3.55 a year earlier and NT$3.19 in the previous quarter. Margins also improved across the board, with gross margin at 6.35%, operating margin at 3.43%, and net margin at 2.80%.

From January to September, Foxconn’s cumulative revenue rose 16% year-on-year to NT$5.5 trillion. Gross profit climbed 16% to NT$344.8 billion, operating profit surged 28% to NT$173.6 billion, and net profit grew 35% to NT$144.1 billion.

Margins also improved, with gross, operating, and net profit margins at 6.27%, 3.16%, and 2.62%, respectively. Earnings per share (EPS) stood at NT$10.38 for the first three quarters, up from NT$7.67 a year earlier.

AI Led Growth

Foxconn currently maintains strong partnerships with leading cloud service providers (CSPs) in North America, having expanded its AI server rack portfolio from GPU-based to ASIC-based solutions.

Beyond its CSP collaborations, the Group is also involved in sovereign AI initiatives across the United States, Taiwan, and Japan. Foxconn expects its AI server market share to exceed the current 40% level by 2026. The company, which is working with NVIDIA to build a supercomputing center, has become Taiwan’s first NVIDIA Cloud Partner (NCP), providing computing resources to industry, government, and academia, further reinforcing its position as a pioneer in sovereign AI.

For the remaining quarter of 2025, Foxconn Chairman Young Liu reaffirmed his expectation of significant overall growth and revised the company’s outlook for smart consumer electronics from a slight decline to a flat performance. He noted that cloud and networking products continue to be the primary growth drivers among Foxconn’s four major business segments.

Looking ahead to 2026, Liu expressed strong optimism, emphasising that the AI industry, along with global political, economic, and monetary factors, will play a decisive role in shaping next year’s performance.