Foxconn Quarterly Profit Falls Despite Higher Revenue
By Sherry Qin
Foxconn Technology Group's net profit for the final quarter of 2025 fell despite continued robust demand for its artificial-intelligence servers amid the global data-center boom.
The Taiwanese company, formally known as Hon Hai Precision Industry, on Monday posted a 2% decline in net profit to 45.21 billion New Taiwan dollars, equivalent to US$1.41 billion. That missed the NT$60.88 billion analysts expected, according to FactSet.
Revenue rose 22% from a year earlier to NT$2.606 trillion.
Despite double-digit revenue growth, a substantially higher tax expense weighed on the fourth-quarter bottom line. The company's gross profit margin declined to 5.88% from 6.15% in the year-ago period.
Once best known as an iPhone assembler, Foxconn, the world's largest contract electronics maker, now generates a significant share of its revenue making AI servers for the likes of Nvidia and Amazon, becoming a key player in the AI revolution that has seen tech giants pour billions of dollars in chips, servers and data centers.
In the latest quarter, revenue from cloud and networking products--including AI servers--accounted for 42% of the company's total revenue. That compared with the 42% share in the third quarter and the 41% share in the second quarter, when the business overtook smart consumer electronics as Foxconn's biggest revenue driver.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
March 16, 2026 03:07 ET (07:07 GMT)
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