Hon Hai Precision Industry Co., Ltd., also known as Foxconn, the world's largest electronics contract manufacturer, announced on Monday that it anticipates robust revenue growth for the first quarter and the full year, even as its quarterly profit declined by 2% and fell short of market expectations.
The technology giant, which is the primary server manufacturer for NVIDIA and a major assembler of Apple's iPhone, did not specify the reasons for the profit decline in its statement, despite strong global demand for artificial intelligence products.
Foxconn's outlook for both first-quarter and full-year revenue is described as "strong growth," the highest level of guidance the company provides, as it does not offer specific numerical forecasts.
This marks the company's first time providing a full-year performance outlook for 2026, indicating that growth will be driven by sustained robust demand for AI servers.
For the period from October to December of last year, the company reported a net profit of NT$452.1 billion (approximately US$14.2 billion), which was below the Refinitiv market consensus estimate of NT$638.6 billion.
The electronics giant also projected a significant year-on-year increase in revenue from smart consumer electronics products for the first quarter.
Foxconn is scheduled to hold an earnings conference call later on Monday in Taipei, where it is expected to provide an updated full-year performance outlook.
In January, Hon Hai Precision had reported that its fourth-quarter revenue reached a record high, propelled by strong demand for AI products.
While the majority of iPhones that Foxconn produces for Apple are assembled in China, iPhones sold in the U.S. market are primarily manufactured in India. The company is also constructing facilities in Mexico and Texas to produce AI servers for NVIDIA.
Foxconn has been actively seeking to expand its electric vehicle business, which it views as a major future growth driver, although progress in this segment has not been consistently smooth.
In August of last year, Foxconn announced it had reached an agreement to sell a former automotive plant in Lordstown, Ohio, for $375 million, including related machinery and equipment acquired in 2022 for electric vehicle production.
So far this year, Foxconn's stock price has declined by 6%, underperforming compared to the 15% gain of the benchmark Taiwan stock index.
Ahead of the earnings release, Foxconn's shares closed up 0.9% on Monday.
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