Foxconn’s AI Server Shipments Jump 1.5 Times in Third Quarter
Key Facts
Foxconn’s shipments of ASIC-based AI servers rose 1.5 times year on year in the third quarter of 2026, according to a report published by DIGITIMES on November 12. The growth put specialized server shipments at the forefront of developments accompanying the company’s quarterly results. In its results statement, Foxconn said group revenue reached a record level for a third quarter, with cloud and networking products the main driver. It added that these products, which benefited from strong demand for AI servers, surpassed even its most optimistic initial expectations. The company thus linked the expansion in server shipments to one of its leading revenue drivers during the period.
Foxconn’s revenue reached 3.02 trillion Taiwan dollars in the third quarter, up 46% from the same period a year earlier, according to the company’s statement. Revenue growth accelerated from the second quarter, when it was 2.53 trillion Taiwan dollars, up 41% year on year. Net profit for July to September also rose 34% to 77.5 billion Taiwan dollars, exceeding the LSEG average forecast of 69.6 billion Taiwan dollars, according to data reported by Reuters via Investing.com. In the first nine months of 2026, revenue reached 7.66 trillion Taiwan dollars, up 39% year on year. Operating profit over the same period rose 65% to 285.8 billion Taiwan dollars, the company said.
The third-quarter results followed an earlier update from Foxconn indicating quarterly revenue of 3.03 trillion Taiwan dollars, above the LSEG estimate of 2.83 trillion Taiwan dollars. September revenue alone was 1.16 trillion Taiwan dollars, up 38% year on year and a record for a single month, Reuters reported on October 5. In the company’s published third-quarter results, annual revenue rose 46%, compared with growth of 41% in the second quarter. This reflects continued revenue expansion across consecutive quarters, alongside the performance of cloud and networking products. The company said strong demand for AI servers had driven the segment to exceed its initial expectations.
According to DIGITIMES, ASIC server shipments rose 1.5 times year on year in the third quarter. In separate guidance, Foxconn forecast high double-digit growth in AI rack shipments in the fourth quarter of 2026, at the same rate in 2027. The company also pointed to market share gains in 2027. The guidance concerns AI rack shipments specifically, while a comparable forecast for total sales growth could not be verified. The company also said its confidence in 2027 growth was based on current customer demand, while flagging supply constraints and external factors.
Foxconn raised its 2026 outlook for all four of its product segments and said it expects strong revenue growth in the fourth quarter, both quarter on quarter and year on year. This comes alongside its guidance for high double-digit growth in AI rack shipments during the same quarter. The company, however, identified shortages of chips, memory and some key components as a shared challenge for AI and consumer electronics supply chains. It said, "Overall demand is expected to continue to exceed supply next year." These constraints place the shipment outlook against a backdrop of supply that may not keep pace with customer demand, according to the company’s statement.
Cloud and networking products are increasingly important in the company’s business mix: Chairman Young Liu said they account for more than 50% of Foxconn’s revenue in 2026. He added that the company expects their share to exceed 60% over the next three to five years. In the November 12 session, Foxconn shares closed down 0.8% before the results announcement, while Taiwan’s main index fell 2.6%, according to Reuters via Investing.com. These moves show the market’s position before the results were released, while the company’s announcement included profit growth that exceeded average expectations. The next step in the company’s guidance is to deliver on its AI rack shipment forecasts for the fourth quarter of 2026 and then 2027, amid the supply constraints it has flagged.