Foxconn Forecasts Strong 2026 Revenue Growth While Quarterly Profit Falls 2%
Foxconn forecasts strong revenue growth for Q1 and full-year 2026, driven by sustained AI server demand, despite reporting a 2% drop in quarterly net profit to T$45.21 billion versus analyst estimates of T$63.86 billion. The company highlights significant expansion of iPhone assembly capacity in India, Mexico and Texas.
1. Revenue and Profit Guidance
Foxconn issued its first full-year 2026 outlook, projecting “strong growth” for first-quarter and annual revenue. It reported a 2% decline in October–December net profit to T$45.21 billion, missing consensus of T$63.86 billion.
2. AI Server Demand Driving Growth
Sustained global demand for AI servers, particularly Nvidia's hardware, underpins Foxconn's revenue forecast, with the company emphasizing AI products as a key growth driver. New manufacturing facilities in Mexico and Texas are being built to support expanded server production.
3. Apple Assembly Capacity Expansion
Most iPhone assembly will continue in China, but Foxconn is scaling production in India to serve U.S. markets. Investments in Indian plants and relocations to Mexico and Texas aim to diversify and reinforce supply for Apple's key product lines.
4. Stock Performance Commentary
Foxconn's shares have declined 6% year-to-date but rose 0.9% on the day of the results, reflecting investor focus on guidance over profit miss. Market analysts are weighing the long-term impact of expanded capacity and AI demand on margins.