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🚨 Foxconn Just Posted a Record $2.35 Billion Quarter, Beating Forecasts by 11%

Foxconn earned a record NT$77.5bn ($2.35bn) in Q3, up 34% and well ahead of forecasts, as AI server racks hit 54% of revenue.

By Tech Arcade··2 min read

Foxconn Just Posted a Record $2.35 Billion Quarter, Beating Forecasts by 11% — Tech Arcade
Photo: Rick Rothenberg / Unsplash

Foxconn just made NT$77.5 billion ($2.35 billion) in net profit in a single quarter, the most it has ever earned in three months (Reuters via Business Recorder).

That is up 34% on a year ago and comfortably ahead of the NT$69.6 billion analysts had pencilled in, a beat of roughly 11%. The results landed this morning, 12 November, London time.

And the company says the next quarter will be bigger.

⚡ What Happened

The world’s largest contract electronics maker reported its July to September numbers on Thursday afternoon in Taipei. The headlines (CNA):

  • Revenue: NT$3.02 trillion, up 46% year on year and a quarterly record
  • Net profit: NT$77.52 billion, up 29% on the previous quarter
  • Earnings per share: NT$5.51, against NT$4.15 a year ago
  • Operating profit: NT$115.4 billion, the first time it has cleared NT$100 billion (Next Apple)

Cloud and networking products, which is where the AI server racks live, made up 54% of revenue, up from 51% the quarter before.

🧠 Why It Matters

You probably know Foxconn as the company that assembles your iPhone. Its biggest growth story now is building the server racks that Nvidia’s AI chips go into.

So when Foxconn posts a record, it is a direct read on how much AI hardware is physically leaving factories. A week after the Nasdaq dropped 5% and chip stocks fell nearly 11% on AI jitters, this is hard evidence that orders are still flowing.

One thing to keep an eye on: gross margin slipped to 6.02%, down from 6.35% a year earlier. Foxconn is selling far more, but each dollar of AI kit is not getting more profitable. Operating margin did improve, to 3.83%, as scale kicked in.

🔜 What To Watch

  • Q4: Foxconn says revenue will grow strongly both quarter on quarter and year on year, with AI rack shipments expected to rise by a high double-digit percentage on Q3 (UDN).
  • 2026 outlook: It raised the full-year outlook for all four of its product groups compared with its August briefing.
  • 2027: Chairman Young Liu says the company is confident AI rack shipments will keep growing at a high double-digit rate next year, while calling the overall 2027 view “cautiously optimistic”.
  • The share price: the figures landed after Taiwan’s market closed on Thursday, so Friday’s open is the first verdict.

The earnings call is still being digested, so expect more detail through the day.

Sources

❓ Quick answers

How much profit did Foxconn make in Q3 2026?

Foxconn reported a record net profit of NT$77.5 billion (about $2.35 billion) for July to September 2026, up 34% year on year, according to Reuters on 12 November 2026.

Did Foxconn beat earnings expectations?

Yes. Analysts polled by LSEG expected NT$69.6 billion, so the NT$77.5 billion result beat consensus by roughly 11% (Reuters).

What is Foxconn's outlook for Q4 2026 and 2027?

Foxconn expects strong quarter-on-quarter and year-on-year revenue growth in Q4, with AI rack shipments up by a high double-digit percentage, and says it is confident AI rack shipments will keep growing at a high double-digit rate in 2027 (CNA, UDN).