Foxconn raises Q2 guidance after record May revenue

Foxconn said Friday it now expects Q2 results to exceed its earlier “significant growth” outlook after record May revenue.yahoo
The raised guidance follows a blockbuster Q1 in which operating profit surged 63%, and new AI partnerships with Intel ↗10.64% and SK Group announced this week.reuters
Foxconn, the top server maker for Nvidia ↗2.95% and biggest iPhone assembler for Apple ↗0.70%, plans to boost capital spending 30% this year to expand AI capacity.reuters

Foxconn Raises Q2 Guidance After Record May Revenue

Taiwan’s Foxconn said on Friday that its second-quarter performance is likely to exceed its previously anticipated outlook of “significant” growth, after the contract electronics giant reported record May revenue of NT$859.4 billion, a 39.6% year-over-year increase.tradingview

AI Demand Fuels Momentum

The upgraded outlook caps a quarter of accelerating growth for Foxconn, the world’s largest contract electronics manufacturer. The company, which serves as Nvidia’s biggest server maker and Apple’s top iPhone assembler, does not provide numeric guidance for its outlook. April revenue had already set a monthly record at NT$832.1 billion, up nearly 30% year-over-year.taiwannews

Foxconn’s first quarter of 2026 set a high bar, with revenue reaching a record NT$2.12 trillion, a 29.7% year-over-year increase, while operating profit surged 63%. The company reported first-quarter net profit of NT$49.9 billion, beating analyst estimates, driven by what it described as booming demand for AI rack server infrastructure.reuters

New Partnerships Broaden AI Reach

The guidance upgrade came a day after Foxconn announced strategic partnerships with Intel and South Korea’s SK Group aimed at expanding its AI infrastructure business. Under the Intel deal, the two companies will jointly develop next-generation AI infrastructure and intelligent computing platforms, focusing on server racks equipped with Intel Xeon processors and AI accelerator chips, as well as high-speed interconnect and cooling technologies.reuters

The SK Group collaboration will focus on AI servers, data centers, and energy-related technologies, leveraging SK’s expertise in advanced memory products. “Our collaboration with Intel will combine the strengths of both companies across computing platforms, system integration and global supply chain capabilities,” Foxconn Chairman Young Liu said.tradingview

Outlook Builds on Year of Growth

Foxconn’s raised guidance extends a run of outperformance fueled by the global buildout of AI computing capacity. The company said in March it expected capital expenditures to grow 30% this year from last year’s NT$174 billion as it expands manufacturing capacity for AI servers. Cumulative revenue for the first five months of 2026 has now far outpaced 2025 levels, when full-year second-quarter revenue totaled NT$1.797 trillion.reuters