Foxconn Revenue Surges 22% But Profits Miss on Tax Hit
Foxconn posted $81B in Q4 revenue fueled by AI server demand, but net profit fell short of estimates.
Foxconn's Q4 revenue jumped 22% year-over-year to roughly $81 billion, driven heavily by its booming AI server business. The company builds AI infrastructure for heavyweights like Nvidia and Amazon, and that demand is clearly showing up in the top line.
The bottom line tells a different story. Net profit actually dipped 2% year-over-year to approximately $1.4 billion — well below analyst estimates of around $1.9 billion. The culprit? A higher-than-expected tax expense that ate into gains.
Gross profit margin came in at a razor-thin 5.9%, a reminder that Foxconn's contract manufacturing model trades volume for margins. Even as AI server revenue scales rapidly, the company is essentially moving massive amounts of hardware without much pricing power.
The miss underscores a persistent reality: building AI infrastructure is big business, but profiting from it at scale remains tricky.