Taiwan-based Foxconn, the world’s largest contract electronics manufacturer, reported a sharp acceleration in third-quarter revenue as strong demand for artificial intelligence infrastructure lifted its cloud and networking business. The result exceeded market expectations and provides another indication of the scale of spending flowing through the global AI hardware supply chain.

AI Demand Lifts Foxconn Above Market Expectations

Foxconn reported third-quarter revenue of T$3.03 trillion ($95.4 billion) for the July-September period, representing a 47% increase from the same quarter a year earlier. The figure was well above the LSEG SmartEstimate of T$2.83 trillion, which places greater weight on forecasts from analysts with stronger historical accuracy.

The performance highlights the growing contribution of AI-related infrastructure to Foxconn’s business. The company said strong AI demand generated robust revenue growth in its cloud and networking products division, reinforcing the importance of data-center and computing infrastructure in the current technology investment cycle.

September Sets a New Monthly Revenue Record

Momentum strengthened toward the end of the quarter. Foxconn’s September revenue increased 38% year-on-year to T$1.16 trillion, marking a record for a single month and the first time the company’s monthly revenue surpassed the T$1 trillion threshold.

The company also reported significant growth in smart consumer electronics, a category that includes iPhones. This indicates that Foxconn’s quarterly performance was supported by both its rapidly expanding AI-related operations and traditional consumer-electronics demand, providing a broader base for the revenue increase.

AI Infrastructure Remains Central to Fourth-Quarter Outlook

Foxconn expects its AI-related operations to continue growing in the fourth quarter. The company said the combination of continued AI demand and the traditional second-half peak season for electronics products should support overall performance in line with current market expectations.

Foxconn does not provide numerical financial forecasts, limiting the precision with which investors can assess the company’s future revenue trajectory. Nevertheless, the latest figures suggest that demand for AI infrastructure remains a significant driver of its business as technology companies and data-center operators continue expanding computing capacity.

Strong Revenue Growth Meets a More Complicated Market Backdrop

Despite the strong operating performance, Foxconn cautioned that investors must continue to monitor the effects of a volatile global political and economic environment. Supply-chain conditions, international trade policies and changes in technology spending could influence the pace of future growth.

The stock has also lagged the broader Taiwanese market this year. Foxconn shares have gained 10%, compared with a 72% rise in Taiwan’s benchmark index. The shares closed 1.2% higher on Monday before the revenue figures were released, while the benchmark index advanced 2.6%.

Attention now turns to Foxconn’s full third-quarter earnings report, scheduled for November 12. Investors will be looking beyond the headline revenue growth for further detail on AI-related demand, margins and the sustainability of cloud and networking expansion. The company’s ability to convert exceptionally strong AI-driven sales into broader earnings growth will be an important indicator of how durable the current technology investment cycle remains.