Foxconn Posts Strong Profit but Lowers Guidance Amid Tariff Risks
The Taiwanese company, formally known as Hon Hai Precision Industry, said Wednesday that its net profit jumped 91% from a year earlier to 42.11 billion New Taiwan dollars, equivalent to US$1.38 billion. That beat the NT$37.15 billion consensus estimate compiled by FactSet. Its revenue rose 24% to NT$1.644 trillion.
The results were likely buoyed by Foxconn clients' speeding up of shipments to the U.S. to build inventory buffers ahead of President Trump's sweeping tariffs on global trading partners.
Foxconn's earnings surge was also partly due to a low base in the same period last year, when it booked a NT$17.3 billion write-down tied to its 34% stake in Japanese electronics company Sharp Corp. 6753 -2.76%decrease; red down pointing triangle
Foxconn, best known for assembling Apple's iPhones, now plays an increasingly important role in building AI servers for U.S. tech giants such as Amazon and Nvidia.
Cloud and networking products—including AI servers—accounted for 34% of first-quarter revenue, making them Foxconn's second-largest business segment after smart consumer electronics.
Trump imposed a steep 32% levy on Taiwanese goods on April 2. Although he later announced a 90-day pause on the tariffs, Taiwan's tech manufacturers remain cautious about his next steps.
Foxconn lowered its 2025 revenue guidance to stronger than last year from significantly stronger than last year.
Its shares have fallen about 10% so far this year after notching a more than 70% gain in 2024. Fears about tariffs and possible overspending on AI infrastructure have weighed on the stock.
Write to Sherry Qin at sherry.qin@wsj.com
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