Taiwan’s Foxconn sees 2% dip in Q4 profit despite strong AI demand

Foxconn posts a profit dip even as AI demand surges, with strong growth ahead, but shifting global risks could quietly influence what comes next.

Taiwan-based Foxconn, the world’s largest contract electronics manufacturer, expects strong revenue growth in both the first quarter and the full year, despite reporting weaker-than-expected quarterly profits.

The company posted a 2% decline in profit, mainly due to a higher tax rate. This drop came even as demand for AI products remained strong and fourth-quarter revenue jumped 22%.

A major supplier for Nvidia servers and the leading assembler of Apple’s iPhones, Foxconn gave its highest possible outlook, forecasting “strong growth” for both the upcoming quarter and the full year. However, it did not provide specific numerical estimates.

This also marks the first time Foxconn has issued a full-year outlook for 2026.

- Advertisement -

The company expects growth to be driven by continued strong demand for AI servers, aiming to reach around 40% market share.

Despite the positive outlook, Chairman Liu warned of external risks, particularly global political and economic uncertainties, including tensions in the Middle East, which could affect supply chains.

For the October to December quarter, Foxconn reported a net profit of T$45.21 billion ($1.42 billion), missing analyst expectations of T$63.86 billion.

Looking ahead, the company expects strong year-on-year growth in its smart consumer electronics segment during the first quarter, while forecasting a decline in the personal computer business.

Formerly called Hon Hai Precision Industry, Foxconn had earlier reported record fourth-quarter revenue, driven by strong demand for AI products.

While most iPhones are still assembled in China, a large portion of those sold in the United States are now produced in India. Foxconn is also expanding operations in Mexico and Texas to support Nvidia’s AI server production.

The company is also investing in electric vehicles, which it sees as a key growth area, although progress in this segment has been uneven.

So far this year, Foxconn’s shares have fallen 6%, underperforming Taiwan’s benchmark index, which has risen 15%. However, the stock gained 0.9% on Monday ahead of the earnings release.

- Advertisement -
Loading form…
Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

Industry's Buzz

Safran

Safran Secures First NATO Naval Order For Optronic Sights With MSI

0
Safran brings Optronic Sights to MSI's naval and land gun systems. Safran Electronics & Defense and MSI-Defence Systems have signed a Franco-British agreement to fit...
Amber Enterprises

Amber Enterprises Completes Full Acquisition of Power-One Micro Systems

0
Amber Enterprises subsidiary acquires remaining 40% stake in Power-One through share swap. Amber Enterprises has bought out its remaining minority partners in Power-One. IL JIN...
Image for representation purpose

Cosmoserve Opens Base 1 To Develop Space-Grade Electronics In-House

0
Cosmoserve Space has opened a new facility in Hyderabad to develop space-grade electronics, optics and avionics in India, with the aim of cutting reliance...
Image for representation purpose

Nemi Targets Nasdaq Listing With USD 400 Million Valuation

0
Nemi is going public. The plan? A $400 million Nasdaq listing. The company just signed a definitive business combination agreement with BHAV Acquisition Corp. This...
LG logo

LG Electronics India to Step Into India’s Automotive Market

0
The South Korean headquarters of LG Electronics will continue to support the business with global technologies and existing relationships with global car manufacturers. LG Electronics...

Learn From Leaders

Roberto Gatti, Founder and CEO of Delvitech

The Eye That Spots Defects Before They Happen

0
Most inspection machines tell you a board failed. Delvitech's tells you when it is about to.Every inspection stage in a factory traditionally needs its...
Pravin Patel, Founder and Chairman, Brio Agri, India

“Our goal is not to replace farmers, but to empower them with better tools,...

0
In an exclusive interaction with EFY's Saba Aafreen, Pravin Patel, Founder and Chairman of Brio Agri, discusses building hydroponics and controlled-environment agriculture in India,...

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...

Startups

EVE NET Turns Spare Smartphone Capacity Into An AI Cloud

0
What if the phone in your pocket could help run AI? A Mumbai-based startup wants to cut AI computing costs by tapping into millions...

Vimag Labs’ Magnet-Free Motors Set To Redefine EV Efficiency

0
Can software replace rare-earth materials? This Bengaluru startup uses virtual magnets to eliminate traditional permanent magnets, boosting EV motor efficiency up to 95 per...

Pine Labs Q2 FY27 Profit Soars 6.5x

0
Pine labs said that it processes 25 million transactions per day, a 22 per cent increase from the previous year. Fintech company Pine Labs, reported...
Dr Venkata Sai Kiran, Founder, Red Balloon Aerospace

How Near-Space Platforms Could Revolutionise Broadband Connectivity – Dr Venkata Sai Kiran, Red Balloon...

0
As nations explore high-altitude platforms for communication, surveillance, and scientific research, Red Balloon Aerospace is developing super-pressure balloons, tethered aerostats, and airships for near-space...
Manish Seth, Founder, Vimag Labs

Beyond Rare-Earth Magnets: How Vimag Labs Is Reimagining Electric Motors – Manish Seth, Vimag...

0
Can software replace rare earth magnets in electric motors? Manish Seth of Vimag Labs speaks to EFY’s Nitisha Dubey about Virtual Magnet Technology, which...