Foxconn Industrial Internet’s 2Q26 Results Meet Expectations as AI Servers and Data-Center Networking Drive Growth: Citi
Foxconn Industrial Internet (601138) reported 2Q26 results that were broadly in line with expectations, according to the Citi research note.
Foxconn Industrial Internet (601138) reported 2Q26 results that were broadly in line with expectations, according to the Citi research note. Its cloud business, particularly AI servers, grew strongly, while revenue from data-center networking equipment doubled.
Citi maintained its 2026 and 2027 net profit forecasts at RMB 6.2 billion and RMB 8.9 billion, respectively. The note said the company’s valuation was reasonable, at 15 times estimated 2027 earnings.
Citi’s view is that AI servers and networking equipment provide clear dual growth drivers for Foxconn Industrial Internet. Current results are in line with expectations, and the stock has already partly reflected AI-server growth. If the doubling of data-center networking-equipment revenue proves more sustainable than expected, it could provide additional upside, according to the note.
Key catalysts cited by Citi are continued growth in AI-server orders, progress in expanding data-center networking-equipment capacity, and the company’s second-half performance guidance. The note identifies quarterly revenue growth, the proportion of revenue from AI servers, and changes in gross margin as indicators to monitor.
Citi maintained its 2026 and 2027 net profit forecasts at RMB 6.2 billion and RMB 8.9 billion, respectively. The note said the company’s valuation was reasonable, at 15 times estimated 2027 earnings.
Citi’s view is that AI servers and networking equipment provide clear dual growth drivers for Foxconn Industrial Internet. Current results are in line with expectations, and the stock has already partly reflected AI-server growth. If the doubling of data-center networking-equipment revenue proves more sustainable than expected, it could provide additional upside, according to the note.
Key catalysts cited by Citi are continued growth in AI-server orders, progress in expanding data-center networking-equipment capacity, and the company’s second-half performance guidance. The note identifies quarterly revenue growth, the proportion of revenue from AI servers, and changes in gross margin as indicators to monitor.