Foxconn beats estimates with file fourth-quarter income on AI demand

TAIPEI (Reuters) -Taiwan’s Foxconn (SS:601138), the world’s largest contract electronics maker, beat expectations to submit its highest-ever income for the fourth quarter on continued robust demand for synthetic intelligence (AI) servers.

Income for Apple (NASDAQ:AAPL)’s greatest iPhone assembler jumped 15.2% to T$2.13 trillion ($64.72 billion), Foxconn stated in a press release on Sunday.

It was additionally forward of a T$2.1 trillion LSEG SmartEstimate, which supplies larger weight to forecasts from analysts who’re extra persistently correct.

Sturdy AI server demand led to robust income progress for its cloud and networking merchandise division, stated Foxconn, whose prospects embrace AI chip agency Nvidia (NASDAQ:NVDA).

For sensible client electronics, which incorporates iPhones, there was “roughly flattish” year-on-year progress, it stated.

Complete (EPA:TTEF) income in December alone reached T$654.8 billion, up 42.3% 12 months on 12 months and the second-highest ever degree for the month.

“Within the first quarter of 2025, total operations have progressively entered the standard low season,” Foxconn stated of its outlook for the present quarter.

“Even with file excessive income within the fourth quarter of 2024, the sequential efficiency of the primary quarter will attain roughly related ranges which can be common to the previous 5 years; in contrast with a 12 months in the past, it ought to present important progress.”

The corporate, formally referred to as Hon Hai (TW:2317) Precision Business, didn’t elaborate. It doesn’t present numerical forecasts.

Foxconn’s shares jumped 76% final 12 months, outperforming by far a 28.5% rise for the broader Taiwan market. They closed down 0.8% on Friday forward of the income information launch, in contrast with a 0.3% achieve for the benchmark index.

The corporate will report its full fourth-quarter earnings on March 14.

($1 = 32.9120 Taiwan {dollars})