Foxconn Q1 revenue jumps 29.7% on AI demand

Taiwan's Foxconn, the world's largest contract electronics manufacturer, reported a sharp rise in first-quarter revenue.

The strong numbers were supported by surging demand for artificial intelligence infrastructure — even as the company sounded a note of caution over what it described as a "volatile" global political and economic environment.

Revenue for the January-to-March quarter climbed 29.7% year-on-year to T$2.13 trillion (approximately $66.60 billion), Foxconn said in a statement released on Sunday.

The figure came in marginally below the T$2.148 trillion LSEG SmartEstimate.

Foxconn, formally known as Hon Hai Precision Industry, serves as the primary server manufacturer for chipmaker Nvidia and is Apple's largest iPhone assembler.

Both business lines contributed to the quarterly performance.

The company's cloud and networking products division was a key growth engine, driven by robust demand for AI-related infrastructure.

Meanwhile, the smart consumer electronics segment — which encompasses iPhone assembly — recorded what the company characterised as "significant" growth, attributed to new product launches during the period.

Inside the numbers

March proved to be a standout month within the quarter.

Revenue for the month alone surged 45.6% on a year-on-year basis to T$803.7 billion, marking a record for that calendar month, according to the company.

Looking ahead, Foxconn expressed confidence in continued momentum.

Operations are expected to grow both quarter-on-quarter and year-on-year in the second quarter, with AI server rack deployments maintaining what the company described as a "continued growth trend."

Geopolitical risks on the radar

Despite the upbeat near-term guidance, the company introduced a note of caution.

"It remains necessary to monitor the impact of the volatile global political and economic situation," Foxconn said in its statement, without providing further elaboration.

The warning echoes remarks made last month by Chairman Young Liu, who identified the global economic and political landscape — with particular reference to the conflict in the Middle East — as the company's most significant external challenge for the year.

Foxconn does not issue numerical financial forecasts. The company is scheduled to report its full first-quarter earnings on May 14.

The revenue announcement comes against the backdrop of a difficult year for Foxconn's stock.

Shares have declined approximately 16% year-to-date, underperforming the broader Taiwan market benchmark index, which has gained around 12% over the same period.

The stock closed down 2% on Thursday, broadly in line with the benchmark index, ahead of the revenue data release.

Taiwan's financial markets were closed on Friday for a public holiday and are scheduled to resume trading on Tuesday.