Foxconn Q1 Net Profit Soars 91%
On May 14, Foxconn Technology released its financial results for the first quarter of 2025, reporting consolidated revenue of NT$1.6 trillion. While this marks a 23% decline compared to the previous quarter, it reflects a notable 24% year-over-year increase. Net profit reached NT$42.108 billion, up 91% from the same period last year and down only 9% from the high seasonal earnings in Q4 2024—setting a new record for first-quarter performance. Earnings per share stood at NT$3.03.
A major contributor to this strong performance was the continued expansion of Foxconn's cloud and networking product segment, particularly in AI servers, which accounted for 34% of total revenue in Q1—up significantly from 26% in Q4 2024.
Foxconn's earlier projections anticipated a sequential decline in Q1 revenue due to seasonal factors but expected solid year-on-year growth, which the actual results have confirmed. While smart consumer electronics saw a quarterly dip, year-over-year performance remained steady. The company had also forecasted robust year-over-year growth for its cloud and networking products and a slight drop compared to Q4, which aligned with actual outcomes. In the computing systems segment, revenue posted a modest quarterly decrease but showed a strong increase compared to the same period last year.
In terms of product revenue breakdown for Q1 2025:
· Smart consumer electronics contributed around 40%, down from 51% in Q4 2024.
· Cloud and networking products rose to 34%, up from 26%.
· Computing systems accounted for 19%, compared to 17% in the prior quarter.
· Components and other categories made up the remaining 7%.
Looking ahead to Q2 2025, Foxconn Chairman Young Liu projects a strong performance led by AI servers. He expects AI server revenue to potentially double both quarter-over-quarter and year-over-year, with steady growth throughout the year. Cloud and networking products are expected to nearly match smart electronics in revenue share by the end of 2025.
However, Liu also pointed to increased global uncertainties, including tariffs, exchange rates, and shifts in monetary policies, which may impact revenue when converted into New Taiwan Dollars. As a result, the company has slightly adjusted its full-year outlook from "strong growth" to "significant growth," adopting a more cautious stance.
Despite global challenges, Liu emphasized that tariff impacts on Foxconn remain limited, thanks to ongoing efforts to expand its global manufacturing footprint. In 2024, the company increased the number of factories and offices worldwide by 10%, reinforcing its strategy of regional manufacturing and localized delivery. New capacity continues to come online in Mexico, Vietnam, India, and Europe, enhancing operational flexibility and resilience. Foxconn is also advancing new business initiatives across Taiwan, the U.S., mainland China, and India.
