Foxconn Cuts 2025 Outlook Despite 91% Profit Surge

Faizan Farooque

Wed, May 14, 2025, 2:10 PM 1 min read

Foxconn posted a crisp increase successful net for the archetypal 4th of 2025, but chopped its full-year guidance Tuesday, citing currency headwinds and U.S. commercialized argumentation risks.

Revenue climbed 24.2% twelvemonth implicit twelvemonth successful the JanuaryMarch quarter, supported by beardown income of AI servers. While Foxconn expects Q2 to present continued year-on-year maturation successful its server segment, Chairman Young Liu said the institution was present taking a much cautious presumption connected full-year maturation compared to March.

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The alteration successful guidance reflects the caller appreciation of the Taiwan dollar, which Liu said whitethorn impact gross show aft conversion. He besides pointed to volatile U.S. tariff developments arsenic different challenge, adjacent arsenic Washington and Beijing precocious agreed to suspend immoderate tariffs for 90 days.

Foxconn remains a cardinal assembler for Apple's (AAPL, Financials) iPhones and a captious spouse for Nvidia (NVDA, Financials) successful gathering AI servers, including retired of a caller installation successful Mexico.

Nvidia precocious announced plans to manufacture $500 cardinal worthy of AI servers successful the U.S. implicit 4 years, successful concern with Foxconn and TSMC.

Foxconn is besides pursuing maturation successful electrical vehicles. Its subsidiary, Foxtron, signed a memorandum of knowing with Mitsubishi Motors for an EV proviso project. The institution is successful talks with Nissan connected further collaboration, but nary statement has been finalized.

Foxconn banal has declined 11.4% truthful acold this year, underperforming the broader Taiwan index, which is down 5.4%. Shares roseate 3.2% connected Wednesday up of the net call.

Investors should show aboriginal FX argumentation decisions, updates connected tariff extensions, and the company's adjacent moves successful AI server accumulation and EV expansion.

This nonfiction archetypal appeared connected GuruFocus.