Foxconn hits record Q2 revenue but flags geopolitical, currency headwinds

Taiwan’s Foxconn has reported record second-quarter revenue, fuelled by strong demand for artificial intelligence (AI) products, but has cautioned that geopolitical tensions and exchange rate volatility could pose challenges to future growth. According to Reuters, Foxconn, formally known as Hon Hai Precision Industry, said on Saturday that its April–June revenue jumped 15.82 per cent year-on-year to T$1.797 trillion. That figure not only set a quarterly record but also beat the T$1.7896 trillion LSEG SmartEstimate, which gives extra weight to the most consistently accurate analyst forecasts.

As reported by Reuters, Foxconn is the world’s largest contract electronics maker and Apple’s biggest iPhone assembler. The company credited robust AI demand for the strong performance in its cloud and networking products division. Customers include AI chip leader Nvidia, which has seen soaring demand for its processors as businesses invest heavily in AI technologies.

iPhone sales growth stalls

Despite the AI-driven boost, Foxconn reported “flattish” year-on-year revenue growth in its smart consumer electronics division, which includes iPhones. According to Reuters, the company cited exchange rate effects as weighing on sales in this critical segment. Reuters also reported that Foxconn’s June revenue rose 10.09 per cent from a year earlier to T$540.237 billion, marking the highest-ever figure for that month.

Looking ahead, Foxconn said it expects revenue growth in the current quarter both sequentially and compared with the same period last year. However, the company issued a clear warning that the global outlook remains uncertain. “The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring,” Foxconn said in its statement, according to Reuters.

Trade tensions heighten uncertainty

The caution comes amid renewed fears over global trade tensions, particularly between the United States and China. Reuters reported that US President Donald Trump said on Friday he had signed letters to 12 countries detailing new tariff levels on their exports to the United States. He described them as “take it or leave it” offers to be sent out on Monday, underscoring the hard line from Washington.

Reuters also noted that Foxconn’s supply chain remains deeply exposed to China. The city of Zhengzhou is home to the world’s largest iPhone manufacturing facility, operated by Foxconn, making the company particularly sensitive to any escalation in US-China trade disputes.

Shares face pressure despite strong 2024

Despite last year’s surge, Foxconn’s stock has struggled in 2025 amid broader tech-sector weakness and concerns over Trump’s trade policy. Reuters reported that Foxconn shares jumped 76 per cent in 2024, far outpacing the Taiwan market’s 28.5 per cent rise. But so far this year, the stock is down 12.5 per cent, reflecting investor caution over geopolitical risks.

On Friday, shares closed down 1.83 per cent ahead of the revenue release, compared with a 0.73 per cent drop in Taiwan’s benchmark index, according to Reuters. Foxconn traditionally does not provide formal earnings forecasts and did not release a profit figure with Saturday’s revenue announcement. As reported by Reuters, the company said it will publish its full second-quarter results on August 14.

(With inputs from the agencies)