Key Highlights
- May revenue reached NT$859.4B, marking a 39.57% annual increase and setting a new May record for the company
- Second quarter results are now expected to exceed initial projections significantly, powered by surging AI rack orders
- Five-month cumulative revenue climbed to NT$3.82T, representing a 31.79% year-over-year gain and establishing a new milestone
- Strategic partnership unveiled with Intel focused on advancing AI infrastructure and computing solutions
- Cooperation agreement signed with SK Group targeting AI server technology, data center development, and energy innovations
Foxconn delivered historic May performance with revenue hitting NT$859.4B, representing a 39.57% increase from the prior year and a 3.28% gain versus April. Converting to U.S. dollars reveals approximately 38.5% annual growth. The company’s previous May peak stood at NT$615.7B, achieved in 2025.
According to the electronics manufacturing giant, the second quarter typically represents a quieter period for information and communications technology businesses, as flagship products transition between generations. However, AI rack systems are bucking this seasonal trend.
“AI racks are expected to maintain a continued growth trend,” Foxconn stated in its Friday press release. “Based on current visibility, Q2 performance is tracking well above the previously anticipated growth, though it remains necessary to monitor the impact of the volatile global political and economic situation.”
Since [[LINK_START_2]]Foxconn[[LINK_END_2]] doesn’t provide specific numerical projections, this upgraded language describing performance “well above” expectations represents the most definitive indicator available to market participants.
The Cloud and Networking Products division powered the annual revenue surge, benefiting from accelerated demand for AI-related products. Additional growth came from Smart Consumer Electronics, Computing Products, and Components categories on a year-over-year basis.
Looking at sequential trends, Cloud and Networking revenue remained relatively stable month-over-month due to customer order timing, while AI product demand continued its upward trajectory. Smart Consumer Electronics posted robust monthly gains, whereas Computing Products and Components experienced modest declines.
Historic Performance Through May
For the January-May period, total revenue reached NT$3.82T — advancing 31.79% from the same timeframe last year and representing the strongest five-month performance in company history. In dollar terms, this translates to roughly 35.7% annual expansion. The previous record for this period was NT$2.90T set through May 2025.
This sustained revenue acceleration is difficult to dismiss, with the AI rack segment clearly functioning as the primary growth catalyst.
Strategic Alliances with Intel and SK Group
On Thursday, Foxconn revealed a collaborative arrangement with Intel aimed at co-developing and implementing advanced AI infrastructure alongside intelligent computing platforms. This partnership seeks to merge [[LINK_START_3]]Intel[[LINK_END_3]]’s processor technology and software frameworks with Foxconn’s manufacturing capacity and data center implementation expertise.
Both organizations indicated plans to investigate custom semiconductor development and comprehensive system integration opportunities. Specific financial details were not made public. The announcement emerged during Computex 2026 in Taipei, where [[LINK_START_3]]Intel[[LINK_END_3]] CEO Lip-Bu Tan presented his company’s AI infrastructure strategy.
Separately, Foxconn established an agreement with SK Group to expand collaboration across AI infrastructure domains, encompassing AI server systems, data center facilities, and energy-focused technologies. SK Group contributes advanced AI memory solutions and energy sector knowledge to this alliance.
Foxconn’s FXCOF shares declined 2.90% on Friday, while Nvidia (NVDA) — whose AI server products Foxconn manufactures — advanced 1.82%. Apple (AAPL), another major Foxconn client, increased 0.31%.
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