Foxconn expects third-quarter performance to beat market expectations on AI demand

MUMBAI: Foxconn is expecting its third quarter to outperform market expectations, with surging demand for artificial intelligence products and the seasonal peak in information and communications technology products giving the Taiwanese electronics giant a boost.

Foxconn said visibility for the September quarter had improved compared with the previous month, pointing to stronger momentum as demand for AI-related infrastructure continues to rise.

“In the third quarter, as AI demand continues to grow, and ICT products also enter the peak season of the second half of the year, operations are expected to gradually gain momentum,” Foxconn said in a statement.

The company added that its overall third-quarter performance is expected to outperform market expectations, although it warned that the global political and economic environment remains volatile.

“Visibility for the third quarter has improved compared to the previous month, with overall performance expected to outperform market expectations, though it remains necessary to monitor the impact of the volatile global political and economic situation,” Foxconn said.

The upbeat outlook follows another strong month for Foxconn. The Apple assembler reported unaudited consolidated revenue of NT$921.8 billion, or around $29.15 billion, for August 2026.

Revenue increased 51.98 per cent year on year, although it declined 2.61 per cent from July. August marked Foxconn’s highest revenue for the month on record and its second consecutive month with revenue above NT$900 billion.

The company described August as its second-highest single-month revenue and its strongest-ever August performance.

The figures underline the growing contribution from AI-related infrastructure alongside Foxconn’s traditional consumer electronics manufacturing business.

Foxconn’s strong outlook also builds on its second-quarter performance. Net profit for the April-June period rose 35 per cent year on year to NT$59.97 billion, or about $1.86 billion.

The result exceeded the LSEG analyst consensus of NT$58.8 billion and rose from NT$44.4 billion in the same period a year earlier.

Second-quarter revenue also jumped 40 per cent year on year, highlighting the strength of demand for AI-related infrastructure.

Foxconn is among the world’s largest electronics manufacturers and is a major assembler for Apple. Its performance has increasingly been watched as an indicator of demand across the wider technology hardware and AI infrastructure markets.

Despite the strong numbers, Foxconn is keeping a cautious eye on the wider economic picture.

The company said investors should continue to monitor geopolitical and economic developments that could affect demand, supply chains and operating conditions.

For now, however, AI demand and the traditional second-half ICT peak season appear to be working in Foxconn’s favour.

The company said its September 2026 monthly revenue report will be released on October 5, while its HHTD26 event is scheduled for October 30-31.