Foxconn Posts Record Q2 2025 Earnings, Projects Strong AI Server Growth Ahead
Hon Hai Technology Group, better known globally as Foxconn (TWSE:2317), has released its financial results for the second quarter of 2025, reporting record-breaking performance in both operating profit and net profit for a second-quarter period. The company also reaffirmed its bullish outlook for the remainder of the year, citing surging demand for AI servers and a robust product mix heading into the traditional peak season.
Strong Second-Quarter Performance
For the April–June period, Foxconn posted revenue of NT$1.79 trillion, a 16% increase from a year earlier. Gross profit rose 14% year-over-year to NT$113.5 billion, while operating profit surged 27% to NT$56.6 billion. Net profit attributable to the owners of the parent company also climbed 27% to NT$44.4 billion. Earnings per share (EPS) reached NT$3.19, up from NT$2.53 a year earlier.
Profit margins also improved, with gross profit margin at 6.33%, operating margin at 3.16%, and net margin at 2.47%. Despite a slight dip in gross margin compared with last year due to the high unit price of AI servers, both operating and net margins increased, highlighting improved operational efficiency.
Group CFO David Huang noted that while AI servers have a lower gross margin, their strong sales have driven significant overall growth. He credited the jump in profits to higher AI server shipments, enhanced efficiency, and optimized production processes.
First-Half Results Show Solid Momentum
For the first six months of 2025, Foxconn recorded revenue of NT$3.44 trillion, up 20% from the same period in 2024. Gross profit for the half-year rose 17% to NT$214.1 billion, operating profit climbed 27% to NT$103.1 billion, and net profit jumped 52% to NT$86.5 billion. EPS for the first half stood at NT$6.23, an increase of NT$2.11 compared with last year.
Leadership Engagement and Strategy
Foxconn’s rotating CEO system, in place for over a year, continues to function smoothly. Under this system, the Chairman hosts investor calls in March and November, while the rotating CEO leads the May and August sessions. Current rotating CEO Kathy Yang participated in her first investor conference call, outlining a strong growth trajectory for Q3 and the remainder of the year.
Yang highlighted that cloud and networking products will drive second-half performance, complemented by strong gains in smart consumer electronics. She reaffirmed the company’s forecast for significant full-year growth but cautioned that global risks—including geopolitics, tariffs, and exchange rates—remain under close watch.
AI Servers: The Growth Engine
AI servers remain a cornerstone of Foxconn’s growth strategy. In Q2, the company’s AI server business grew over 60% year-over-year. Looking ahead, AI server revenue in Q3 is expected to surge more than 170% compared with last year, with rack shipments tripling from the previous quarter.
Yang projected that annual AI server-related revenue will surpass NT$1 trillion. She emphasized that Foxconn’s deep relationships with major customers ensure participation in next-generation product development, whether in GPU or ASIC-based solutions.
Capacity Expansion and Investments
Capital expenditures in the first half of 2025 reached NT$79.8 billion, up 25% year-over-year, with annual capex growth expected to exceed 20%. Foxconn is also expanding AI server production capacity and vertical integration.
The company is advancing a strategic alliance with TECO Electric & Machinery to accelerate modular data center solutions and is repurposing its Ohio site in the U.S. to manufacture cloud and networking products, tapping into the rising AI infrastructure demand.
Beyond AI: EVs, Batteries, and Robotics
Foxconn continues to develop its electric vehicle (EV) initiatives. The Hefa electric battery plant is now in full mass production, targeting 25,000 battery cells per month by the end of Q3. The MODEL B crossover EV is nearing launch, while the North American version of the MODEL C electric SUV is undergoing certification.
In robotics, Foxconn is partnering with NVIDIA to develop advanced humanoid robot “brains,” training multi-skill AI models for industrial applications.
Upcoming Showcase
The company’s Neihu showroom is now complete and open for visits. Foxconn will host its flagship Hon Hai Tech Day 2025 on November 21–22 at the Taipei Nangang Exhibition Center, spotlighting AI Factory, robotics, and smart platform integrations.
With record-breaking quarterly earnings, aggressive AI server expansion, and a diverse growth portfolio spanning EVs, robotics, and data center infrastructure, Foxconn is positioning itself at the center of what it calls a long-term “industrial revolution” driven by AI.
