Foxconn Industrial Internet Anticipates First-Half Net Profit Up to 24.4 Billion Yuan, AI Server Revenue for Cloud Providers Soars Over 230%

Foxconn Industrial Internet Co.,Ltd. (ASX: 601138) has issued a positive forecast for its 2026 first-half performance, projecting net profit attributable to shareholders to reach between 23.4 billion and 24.4 billion yuan. This represents a significant year-on-year increase of 93% to 101%.

For the second quarter alone, the company expects net profit to be in the range of 12.8 billion to 13.8 billion yuan, indicating growth of 86% to 101% compared to the same period last year.

This marks a historic milestone for the company, as it is the first time its half-yearly net profit is expected to surpass the 20 billion yuan mark, setting a new record.

Notably, this projected surge follows a period of already rapid growth in 2025, demonstrating a near-doubling of profit from a high baseline. The momentum of this growth is reported to be accelerating further.

Key Drivers of Performance

The company attributes the strong forecast primarily to its cloud computing business, where product structure optimization has led to a substantial improvement in operational efficiency year-on-year.

A standout contributor is the AI server segment for cloud service providers, with revenue from this product line surging by more than 230% during the first half of 2026. AI-related products have become the central growth engine for the company's core operations.

Market share with key clients has seen steady growth, and collaborative development of next-generation products with major customers is progressing smoothly, with mass production anticipated to begin gradually in the latter half of the year.

Expansion in Network Equipment

In the communications and mobile network equipment sector, the company is capitalizing on opportunities in AI computing power. Leveraging its advanced technological capabilities and supply chain advantages, it is actively advancing its strategic positioning.

As high-speed data center interconnects become critical infrastructure for efficient computing power utilization, the company's shipments of data center switches with speeds above 800G have increased by 1.4 times year-on-year.

The overall business segment remains stable, with sustained customer demand and a positive trend in product shipments.