Foxconn, the world’s largest electronics manufacturer and a major supplier for Apple, delivered an impressive performance in the second quarter of 2025, riding the wave of AI demand and cloud infrastructure expansion.
15.82% Year-Over-Year Growth in Q2
Foxconn posted a 15.82% increase in revenue compared to the same period last year, reaching T$1.797 trillion (approximately $55 billion). This result surpassed analyst expectations, which were pegged around T$1.789 trillion.
The growth was primarily driven by Foxconn’s increasing involvement in AI-related hardware manufacturing, including servers and networking equipment for clients in the AI and cloud computing space.
AI and Cloud Demand Powering Performance
Much of Foxconn’s recent success stems from its ability to adapt to the growing demand for artificial intelligence infrastructure. Key customers—such as chipmakers and cloud giants—are ramping up investments in AI servers and data center components, giving Foxconn an important role in this fast-growing segment.
This shift comes at a time when traditional consumer electronics, including smartphones and laptops, have seen slower growth or stagnation due to global economic uncertainties and mature markets.
June Sets New Monthly Revenue Record
Foxconn also had a particularly strong month in June. The company recorded monthly revenue of T$540.24 billion, up 10.09% year-on-year. This marked a new monthly record and reflected steady demand even as global tech markets remained cautious.
Such strong month-end performance bodes well for the company’s third quarter, which typically includes a ramp-up in production ahead of new iPhone releases.
Smart Consumer Electronics Stay Flat
Interestingly, Foxconn noted that its smart consumer electronics division—its largest business group—showed flat growth in Q2. This was mainly due to currency fluctuations that offset gains in production volumes, including for flagship products like the iPhone.
Despite modest results in this segment, the overall revenue growth shows that Foxconn is successfully diversifying its income streams beyond consumer gadgets.
Cautious Outlook Amid Geopolitical Risks
Looking ahead, Foxconn expressed cautious optimism for the third quarter. The company expects both quarterly and year-over-year growth to continue but flagged some external risks:
-
Geopolitical tensions, particularly between the U.S. and China
-
Potential new U.S. tariffs on Chinese imports
-
Ongoing foreign exchange volatility
These factors could impact both supply chain costs and product pricing, making Foxconn’s forward planning more complex.
Stock Performance and Market Sentiment
While Foxconn had a strong Q2, its stock has dropped 12.5% in 2025 so far. This pullback comes after a stellar 76% gain in 2024 and is part of a broader tech market cooling phase, as investors reassess valuations amid higher interest rates and global trade uncertainty.
Still, analysts remain upbeat about Foxconn’s long-term potential, especially as AI infrastructure spending continues to climb globally.
Final Take
Foxconn’s second-quarter performance underscores a strategic pivot: the company is becoming more than just a smartphone assembler. Its growing stake in AI-related manufacturing and cloud infrastructure signals a shift toward more diversified, future-proof revenue streams.
With strong fundamentals and a record-breaking June, Foxconn seems well-positioned for the remainder of 2025—so long as global risks are managed effectively.