Foxconn Q2 Profit Up 59% to $7.77B; AI Servers Rise 60%

On August 14, Foxconn Technology Group unveiled its financial results for the second quarter, showcasing a remarkable performance with substantial growth in revenue and profitability. The company reported a significant 59% increase in quarterly net profit, reaching NT$35.045 billion, setting a new record for the period.

For Q2, Foxconn achieved a revenue of NT$1.55 trillion, marking a 17% increase from the previous quarter and a 19% rise year-over-year. The gross margin improved to 6.42%, up 0.1 percentage points from the previous quarter and 0.01 percentage points compared to the same period last year. The operating profit margin was 2.88%, reflecting a 0.1 percentage point gain quarter-over-quarter and a 0.51 percentage point increase year-over-year. Although the net profit margin slightly declined to 2.26%, down 0.26 percentage points from the previous year, the net profit after tax surged to NT$35.045 billion (approximately RMB 7.77 billion), representing a 59% quarter-over-quarter increase and a 6% year-over-year growth.

David Huang, Foxconn's Chief Financial Officer, highlighted that the increase in gross margin was driven by an optimized product mix and expanded revenue scale. The slight decline in net margin from the previous year was attributed to asset disposals in the first half of the previous year.

Foxconn spokesperson James Wu noted that the Q2 results surpassed expectations, largely due to the robust performance in AI server sales. AI server revenue grew by over 60% quarter-over-quarter and now represents more than 40% of the total server revenue.

In other areas, consumer smart products performed as expected, maintaining stability compared to both the previous quarter and the same period last year. However, the company's cloud networking, computer terminals, components, and other product lines experienced significant growth relative to both the previous quarter and the prior year.

The revenue breakdown for Q2 was approximately 40% from consumer smart products, 32% from cloud networking solutions, 21% from computer terminals, and 7% from components and other products.

For the first half of the year, Foxconn's consolidated revenue reached NT$2.87 trillion, a 3.88% increase from the same period last year. The gross margin was 6.37%, up 0.16 percentage points year-over-year. The operating profit margin improved by 0.25 percentage points to 2.83%, and the net profit margin increased by 0.32 percentage points to 1.98%. The net profit after tax amounted to NT$57.054 billion, reflecting a 24.5% year-over-year increase.