Taipei — Taiwan’s Foxconn, the world’s largest contract electronics maker and a key supplier to Apple and Nvidia, posted a 17% rise in third-quarter profit, beating market expectations amid booming demand for AI server infrastructure—a trend the firm expects to continue through 2026.

Net profit for the July–September quarter climbed to T$57.67 billion (US$1.89 billion), ahead of the T$50.4 billion consensus estimate from LSEG analysts. Revenue increased 11% year over year to NT$2.06 trillion.

Foxconn credited the strong performance to robust orders for AI-related hardware, noting that cloud and networking products—including AI servers—made up 42% of total sales, maintaining their lead after overtaking consumer electronics last quarter.

The company forecast continued revenue expansion in the final quarter of 2025, supported by a further pickup in AI server shipments. For the full year, Foxconn reaffirmed its outlook for “solid growth,” consistent with its earlier August projections, while refraining from disclosing specific targets.

By the end of September, cumulative revenue from AI server operations had reached roughly NT$1 trillion, driven by increased rack production and manufacturing upgrades.

Operating under its formal name, Hon Hai Precision Industry Co., the company has been deepening its involvement in the global AI supply chain, supplying servers to major U.S. technology firms such as Nvidia and Amazon, while maintaining its long-standing role as Apple’s top iPhone assembler.

To reinforce its AI leadership, Foxconn’s board recently approved a NT$42 billion investment for new equipment dedicated to an AI computing cluster and supercomputing center. Earlier in the year, the firm also unveiled a partnership with Nvidia to build a supercomputing facility in Taiwan, powered by 10,000 Nvidia Blackwell chips.