Foxconn's Historic Q2 2025: AI Server Revenue Overtakes iPhones

Key profit metrics for the quarter were also records:

• Net profit: NT$44.36 billion (US$1.48 billion), up 27% YoY — also a Q2 record ^MF.
• Earnings per share: NT$3.19 ^FX.
• Operating profit and net profit both set records for a second-quarter period ^F.

Key Driver: AI Server Demand Overtakes iPhones

The single biggest growth catalyst was surging demand for AI servers, especially for key customer Nvidia. In a historic shift, Foxconn's Cloud and Networking Products division — encompassing AI servers and related infrastructure — generated more revenue than its Smart Consumer Electronics division (iPhones, consumer devices) for the first time in Q2 2025 ^RFM. The cloud and networking segment accounted for approximately 41% of total revenue, with consumer smart devices falling to 35% ^YX. As Reuters noted, "Foxconn's Apple era fades as AI servers drive growth" ^F.

This pivot represents a fundamental transformation of Foxconn's business model. For years, Apple's iPhone was the engine of Foxconn's growth. Now, AI infrastructure is taking the lead.

Record Monthly Figures and Rising Momentum

The momentum built through the quarter. In May 2025, Foxconn posted a 39.57% year-over-year revenue surge, driven by rising demand for AI racks. The company raised its Q2 growth forecast as a result ^S. Monthly data from Foxconn's investor relations page shows exceptionally strong results continuing: March 2025 alone recorded NT$803.7 billion in revenue, up 45.6% YoY ^F. June also set a new monthly revenue record of NT$540.24 billion, up 10.09% YoY ^T.

Rising Share of Cloud & Networking Products: A Structural Shift

The Cloud and Networking Products segment became the company's largest revenue contributor for the first time. By full-year 2025, this category reached 40% of total revenue, overtaking consumer electronics at 38% ^FF. This marks a fundamental shift in Foxconn's business mix from iPhone assembly toward AI infrastructure. Foxconn's subsidiary, Foxconn Industrial Internet (FII), reported AI server revenue growth of over 60% year-on-year in Q2 2025, with cloud service provider server revenue rising 150% ^NI. For the full year 2025, FII's net profit grew more than 50%, including a more than threefold increase in AI server revenue ^M.

Cautious Outlook on Geopolitical Tensions and Currency

Despite the record results, Foxconn's management issued explicit caution on two fronts ^RY:

• Geopolitical tensions: The company flagged risks from escalating US-China trade frictions and potential supply chain disruptions.
• Currency fluctuations: Foreign exchange volatility was cited as a headwind, particularly impacting iPhone-related revenue denominated in US dollars.

These risks are not hypothetical. Foxconn's revenue in US dollars outperformed its NT-denominated figures because of the strengthening of the US dollar, but the reverse could also be a headwind. The company's guidance for Q3 2025 projected continued substantial revenue growth, but with these risk factors acknowledged ^R.

Broader Full-Year 2025 Context and Improving Margins

Foxconn's Q2 results were part of an accelerating trajectory through 2025:

For the full year 2025, Foxconn's net profit grew 24% to NT$189.4 billion (~€5.16 billion) ^R. Margins improved notably: the higher-margin AI server and cloud business lifted overall profitability, with operating profit rising 33% in Q4 alone ^K. The company declared a record cash dividend of NT$7.2 per share (payout ratio of 52.9%), reflecting confidence in sustained earnings power ^FF. Foxconn maintained its outlook for "significant growth" through the year and entered 2026 with optimism, calling AI the "core driving force" of its new five-year transformation strategy ^FF.