Taipei [Taiwan], August 12 (ANI): Foxconn reported its highest-ever net profit for the second quarter, rising 35 per cent year-on-year to NT$59.97 billion (USD 1.86 billion), as cloud and networking products accounted for more than half of its revenue amid strong demand linked to AI infrastructure investments, according to a news report by Focus Taiwan.

The report noted that the company's net profit for the April-June quarter rose 20 per cent from the previous quarter, while earnings per share increased to NT$4.27 (USD 0.133) from NT$3.19 (USD 0.099) a year earlier and NT$3.56 (USD 0.111) in the first quarter.

Foxconn's consolidated sales rose 41 per cent year-on-year to NT$2.53 trillion (USD 78.56 billion) in the second quarter, up 19 per cent from the previous quarter.

The cloud and networking division accounted for 51 per cent of total revenue in the quarter, up from 48 per cent in the first quarter. Smart consumer electronics contributed 29 per cent of sales, while computing and electronic components accounted for 15 per cent and 5 per cent, respectively.

The report said Foxconn's second-quarter operations improved significantly from both a year earlier and the previous quarter, supported by a stronger product portfolio that included AI servers and AI racks, driven by investment in AI infrastructure.

The company's operating margin rose to 3.75 per cent in the second quarter from 3.15 per cent a year earlier and 3.57 per cent in the first quarter.

However, gross margin declined to 6.12 per cent from 6.33 per cent a year earlier and 6.18 per cent in the previous quarter. Net margin stood at 2.37 per cent, down from 2.47 per cent a year earlier but marginally higher than 2.36 per cent in the first quarter.

According to the report, Foxconn's net profit for the first half of 2026 stood at NT$109.89 billion (USD 3.41 billion), up 27 per cent year-on-year, while earnings per share reached NT$7.84 (USD 0.244).

Consolidated sales for the January-June period rose 35 per cent from a year earlier to NT$4.65 trillion (USD 144.43 billion), the report added.

The results highlight the growing contribution of Foxconn's cloud and networking business to its overall revenue during the current AI boom. (ANI)