Foxconn Posts Record Q2 Revenue Amid AI Demand, Flags Geopolitical and Currency Risks

Taiwan-based Foxconn, the world’s largest contract electronics manufacturer and Apple’s primary iPhone assembler, reported record-breaking second-quarter revenue, driven by surging demand for artificial intelligence (AI) products. However, the company also issued a cautionary note on potential headwinds stemming from geopolitical tensions and currency fluctuations.

In a statement released Saturday, Foxconn—formally known as Hon Hai Precision Industry Co.—announced Q2 revenue of T$1.797 trillion, marking a 15.82% year-on-year increase and surpassing the T$1.7896 trillion LSEG SmartEstimate. The company attributed the robust performance to strong growth in its cloud and networking products division, which serves major clients including AI chipmaker Nvidia.

Revenue for June alone rose 10.09% year-on-year to T$540.237 billion, setting a new monthly record.

Despite the upbeat financials, Foxconn warned of uncertainties ahead. “The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” the company stated. This comes amid renewed trade tensions, with U.S. President Donald Trump reportedly preparing tariff proposals for 12 countries.

While AI-related segments flourished, Foxconn noted that its smart consumer electronics division, which includes iPhones, experienced “flattish” year-on-year revenue growth, largely due to adverse exchange rate movements.

Looking ahead, Foxconn expects continued growth in the third quarter, both sequentially and year-on-year. However, it refrained from issuing numerical forecasts. The company is scheduled to release its full Q2 earnings report on August 14.

Foxconn’s stock, which surged 76% in 2024, has declined 12.5% year-to-date, reflecting broader volatility in tech equities amid global trade uncertainties.