Foxconn Forecasts Strong 2026 Revenue Amid AI Server Boom

Taiwan’s Foxconn, the world’s largest contract electronics maker, expects strong revenue growth for the first quarter and the full year of 2026, despite reporting a 2% fall in quarterly profit, below analysts’ expectations.

The company, a top assembler for Apple iPhones and the biggest server maker for Nvidia, attributed the profit drop to a higher tax rate. This came even as global demand for AI products surged and Foxconn’s fourth-quarter revenue jumped 22%.

Foxconn’s revenue guidance for both the first quarter and the full year is described as “strong growth,” the highest level it provides, although the company does not release specific figures.

Chairman Young Liu said on an earnings call, “Artificial Intelligence’s strong growth was not just for this past year or two. It will last through the next two to three years.” He added that Foxconn’s major customers expect the AI industry to reach $1 trillion within the same period.

This is the first time Foxconn, which earns a significant share of revenue from AI servers, has issued a full-year 2026 outlook. The company expects its market share in AI servers to reach 40%, driven by sustained global demand.

Despite the positive outlook, Liu highlighted external risks, saying, “The biggest external challenge this year is still the global political and economic situation, especially the war in the Middle East,” referring to the escalating conflict that has affected global markets and supply chains.

Foxconn has benefited from a boom in data centers, as tech giants like Amazon, Microsoft, and Alphabet’s Google invest billions to expand AI infrastructure and research capacity.