Key Highlights
- May revenue reached NT$859.4B, representing a 39.57% year-over-year increase and marking the highest May performance in company history
- Second-quarter results are now expected to exceed initial projections by a significant margin, powered by robust AI rack orders
- Year-to-date revenue through May 2026 totaled NT$3.82T, reflecting a 31.79% year-over-year gain and setting a new record
- Strategic partnership with Intel unveiled to co-develop advanced AI infrastructure and computing solutions
- New agreement with SK Group established to pursue AI server technology, data center development, and energy innovations
The Taiwanese electronics manufacturer reported May revenue of NT$859.4B, marking a 39.57% increase compared to the same month last year and a 3.28% gain from April. When converted to U.S. dollars, the year-over-year growth translates to approximately 38.5%. The previous May record stood at NT$615.7B, achieved in 2025.
According to the company, the second quarter typically represents a slower period for the information and communications technology sector, as manufacturers transition between product generations. However, artificial intelligence rack systems have bucked this seasonal trend.
“AI racks are expected to maintain a continued growth trend,” Foxconn stated in Friday’s 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 Foxconn doesn’t provide specific numerical guidance, the phrase “well above” represents the most definitive indication available to investors regarding performance expectations.
The Cloud and Networking Products segment led the year-over-year expansion, benefiting from accelerated demand for AI-related products. Additional growth was recorded across Smart Consumer Electronics, Computing Products, and Components divisions on an annual comparison basis.
On a monthly basis, Cloud and Networking revenue remained relatively stable due to customer order timing adjustments, though AI product demand remained solid. Smart Consumer Electronics demonstrated notable sequential improvement, while Computing Products and Components experienced modest declines.
Historic Five-Month Performance
Cumulative revenue spanning January through May 2026 climbed to NT$3.82T — representing a 31.79% year-over-year increase and establishing an all-time high for this timeframe. In U.S. dollar terms, this translates to roughly a 35.7% annual increase. The previous record for the first five months was NT$2.90T, set in 2025.
This substantial revenue acceleration is difficult to overlook, with the AI rack segment clearly serving as the primary growth catalyst.
Strategic Collaborations With Intel and SK Group
On Thursday, the manufacturing giant unveiled a strategic collaboration with Intel aimed at jointly creating and implementing next-generation AI infrastructure and intelligent computing platforms. The partnership seeks to merge Intel’s processor technology and software capabilities with Foxconn’s manufacturing expertise and data center deployment infrastructure.
Both organizations indicated they would investigate opportunities in custom silicon development and system integration. Financial details of the arrangement were not revealed. The announcement emerged during Computex 2026 in Taipei, where Intel CEO Lip-Bu Tan presented his company’s AI infrastructure strategy.
Additionally, Foxconn reached an agreement with SK Group to strengthen collaboration in AI infrastructure development, encompassing AI servers, data center facilities, and energy-focused solutions. SK Group contributes advanced AI memory technology and energy sector knowledge to the partnership.
Foxconn’s FXCOF stock declined 2.90% on Friday, while Nvidia (NVDA) — whose AI server systems Foxconn manufactures — rose 1.82%. Apple (AAPL), another major Foxconn client, increased 0.31%.
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