Foxconn Projects Strong 2026 Growth After Q4 Revenue Reaches $83 Billion
Foxconn, Nvidia’s largest server assembler, forecasted 'strong growth' for full-year 2026 revenue, marking its first-ever annual outlook, driven by record Q4 revenue of $83 billion (+22% Y/Y) despite profit slipping 2% to $1.42 billion. It expects AI servers to exceed half of server revenue and build facilities in Mexico and Texas.
1. Full-Year 2026 Revenue Outlook and Nvidia Implications
For the first time, Foxconn provided a full-year 2026 revenue outlook, assigning its highest “strong growth” rating. This unprecedented guidance underscores confidence in AI infrastructure demand and signals sustained order flow for Nvidia’s server components.
2. Q4 Performance Reflects Server Demand
Foxconn reported Q4 net profit of $1.42 billion, down 2% year-on-year, on record quarterly revenue of $83 billion, up 22%. Gross margins narrowed to 5.88% from 6.15%, reflecting higher taxes and softer consumer electronics sales amid robust AI server volumes.
3. AI Server Expansion and Market Share
The AI server segment is expected to account for more than half of total server revenue in 2026, with analysts projecting Foxconn’s market share above 40%. Ongoing production of Nvidia GPU-powered servers is driving this segment’s rapid growth.
4. Infrastructure Build-Out and Strategic Partnerships
Foxconn is constructing new AI server facilities in Mexico and Texas to scale Nvidia server assembly. Partnerships on next-generation AI hardware with OpenAI and a government-backed AI factory initiative further cement its role in Nvidia’s supply chain.