TAIPEI (Reuters) – Taiwan’s Foxconn Group, the world’s largest contract electronics maker, beat expectations by posting its highest-ever third-quarter revenue on strong demand for computer servers. artificial intelligence (AI).
Revenue at Apple’s largest iPhone assembler jumped 20.2 percent year-on-year to 1.85 trillion Taiwan dollars ($57.3 billion).
“The result exceeded the company’s initial expectations of significant growth,” Foxconn said in a statement Saturday.
It was also ahead of the $1.79 trillion LSEG SmartEstimate, which places more weight on analyst forecasts that are more consistently accurate.
Strong demand for AI servers led to strong revenue growth in its cloud and networking products division, said Foxconn, which counts AI chip company Nvidia among its customers.
For smart consumer electronics, which includes iPhones, there was strong quarterly growth driven by new product launches, but its year-over-year performance remained flat.
The third quarter is traditionally the time when Taiwanese technology companies begin rushing to supply smartphones, tablets and other electronic devices to major vendors such as Apple for the Western markets’ holiday season.
Total revenue for September alone reached NT$733 billion, up 10.9 percent year-on-year and the second highest level ever recorded for the month.
“As the peak season approaches in the second half of the year, we expect our operations to gradually gain momentum,” Foxconn said of its outlook for the current quarter.
“The fourth quarter should be roughly in line with current market expectations,” he adds, without further details.
The company does not provide numerical forecasts.
Foxconn shares have surged 86% since the start of the year, far outperforming the 24% rise seen in the broader Taiwan market. They closed 3.7% higher on Friday before earnings data were released, countering a 0.4% decline from the benchmark.
The company will report its full third-quarter results on November 14. It has scheduled its annual technology day for October 8-9, an event where Foxconn normally announces new products or partnerships.
($1 = 32.2900 Taiwan dollars)
(Reporting by Ben Blanchard; editing by Edwina Gibbs)