Foxconn Shares Rise as Q1 Revenue Gains 30% Driven by AI and iPhone Demand

TLDR

• Foxconn’s first-quarter revenue increased by 29.7% compared to the previous year, reaching T$2.13 trillion (approximately $66.6 billion)
• The AI cloud and networking unit was the primary growth driver; the iPhone business also showed robust performance following new product releases
• Revenue for March set a monthly record at T$803.7 billion, reflecting a 45.6% year-on-year increase
• The company highlighted “volatile” global political dynamics, specifically the conflict in the Middle East, as a major risk factor
• Year-to-date, the stock has declined 16%, underperforming Taiwan’s overall market, which has gained 12%

(SeaPRwire) –   Foxconn, officially known as Hon Hai Precision Industry, announced on Sunday that its Q1 revenue was T$2.13 trillion ($66.6 billion), representing a 29.7% year-on-year increase. This figure was slightly below the T$2.148 trillion LSEG SmartEstimate.

JUST IN: Foxconn Q1 revenue jumped 30% on a yearly basis, pointing to strong AI chip and electronics demand even as the Gulf conflict enters its sixth week.

— MSB Intel (@MSBIntel) April 5, 2026

The majority of this expansion was fueled by the cloud and networking products division, which benefited from rising demand for AI infrastructure. As Nvidia’s primary server manufacturer, Foxconn is clearly reaping the rewards of this partnership.

The smart consumer electronics segment, which encompasses iPhones, also experienced significant growth driven by new product introductions. Apple continues to be a key client for Foxconn, and new hardware release cycles typically have a rapid positive impact on the manufacturer.

March was a particularly strong month. Revenue reached a record T$803.7 billion for that period, marking a 45.6% rise from the same month last year, a notable achievement.

AI Racks Keep Climbing

Foxconn indicated that demand for AI racks is projected to keep rising in the second quarter, with business activity anticipated to grow both sequentially and annually. The company did not issue precise numerical forecasts—which is its common practice—but the general tone was positive.

The complete Q1 earnings report is scheduled for May 14, offering investors more detailed insights into margins and profitability beyond the top-line revenue number.

The ongoing construction of AI infrastructure remains the central growth driver. Demand from hyperscale data center operators remains strong, and Foxconn is a key player in that supply chain.

Geopolitical Risk Flags

Notwithstanding the impressive results, the company expressed a cautious outlook. Foxconn stated that it “remains necessary to monitor the impact of the volatile global political and economic situation,” without elaborating further.

Chairman Young Liu had previously pointed to the Middle East conflict as the most significant external threat to the company this year. Risks related to supply chain vulnerabilities and international logistics are genuine worries.

This sense of caution seems to be affecting the stock price. Hon Hai’s shares have fallen 16% since the start of the year, a sharp underperformance compared to the Taiwan benchmark index, which has advanced 12%.

The stock finished Thursday’s session down 2% prior to the revenue announcement, largely mirroring the broader market trend. Taiwanese financial markets were shut on Friday and will reopen on Tuesday.

Market participants will be observing whether the record-breaking March performance, combined with the persistent momentum in AI, can improve investor confidence in a stock that has trailed the market by almost 30 percentage points this year.

The full earnings are scheduled for release on May 14.