TAIPEI (Taiwan News) — Foxconn posted a record second-quarter net profit of NT$60 billion (US$1.86 billion) on Wednesday, up 35% year-on-year, helped by strong demand for AI servers and racks, according to Reuters.
Consolidated revenue reached NT$2.52 trillion, up 19% from the previous quarter and 41% from a year earlier, per CNA. Profit attributable to owners of the parent rose 20% from the first quarter, while basic earnings per share increased to NT$4.27 from NT$3.56, per UDN.
Cloud networking products, mainly AI servers, accounted for 51% of Q2 revenue, up from 48% in the first quarter. Consumer electronics accounted for about 29%, down from 33%, while computer terminal products rose to about 15% from 14%, and components and other products remained at about 5%.
Operating profit rose to NT$94.8 billion, with the operating margin increasing to 3.75% from 3.57% in the first quarter and 3.16% a year earlier. Gross margin, however, fell to 6.12% from 6.18% sequentially and 6.33% year-on-year, while net margin was 2.37%, slightly higher than the previous quarter but below 2.47% a year earlier.
Foxconn said stronger AI infrastructure demand drove growth in AI servers and AI racks, while an improved product mix and greater operating scale boosted core profit. Consumer electronics, computer terminals, and key components also performed better than the company had expected.
First-half revenue rose 35% year-on-year to a record NT$4.64 trillion, while profit increased 27% to NT$109.89 billion, CNA reported. Operating margin reached 3.67%, up 0.67 percentage points from a year earlier and above the company’s 3% target, while cumulative earnings per share stood at NT$7.84.
