Hon Hai Precision Industry (Foxconn) reported consolidated revenue of NT$595.81 billion (approx. US$18.78 billion) for February 2026, down 18.39% from NT$730.04 billion in January, impacted by the Lunar New Year holiday. However, driven by strong demand for cloud and networking products related to artificial intelligence (AI) servers, revenue still increased 8.06% compared with NT$551.38 billion in the same period of 2025.
Cumulative revenue for January and February 2026 reached NT$1.32 trillion, representing a year-over-year increase of 21.63%.
Lunar New Year impact felt across product categories
Foxconn attributed the sequential decline in February revenue primarily to the Lunar New Year holiday, which reduced the number of working days and broadly impacted the performance of various product categories. In addition to slight declines in both the computer terminal and cloud and networking product categories, the smart consumer electronics as well as the components and other product categories also experienced declines.
On a year-over-year basis, Foxconn said the cloud and networking category delivered the strongest performance, fueled by continued strong demand for AI cloud products and driving a notable increase in revenue. Other product categories, however, showed modest declines compared to the same period last year, reflecting the holiday impact on production days.
Continued strong demand for AI servers
For the first two months of 2026, Foxconn said that as the AI momentum continues, demand for AI servers and related components has remained strong. As a result, both the cloud and networking category and the components and others segment recorded strong growth compared with the same period in 2025. Smart consumer electronics remained roughly flat year over year, while computer terminal products posted a decline.
1Q26 expected to be strong
Looking ahead, Foxconn expects overall visibility for the first quarter of 2026 to be in line with market expectations. Shipments of AI server racks continue to increase. Shipments of smart consumer electronics products are also performing better than previously forecast. The company anticipates seasonal operating results for first-quarter 2026 will surpass the range seen over the past five years.
The market believes that although Foxconn saw a decline in February due to seasonal factors, demand from global cloud service providers and sovereign AI projects will continue to drive growth. With shipments of AI racks increasing and demand for cloud products rising, the company is still expected to maintain year-over-year growth in first-quarter 2026.
Additionally, it has been reported that a customer will launch a newly designed smartphone in 2026. As a result, growth momentum in the smart consumer electronics category, which is primarily driven by smartphones, will become a key area to watch in the second half of the year.
Article translated by Eifeh Strom and edited by Joseph Chen
