Behind 52% Profit Surge: Foxconn Industrial Internet Is Entering a New Cycle

Source: Hard Code Technology

AI computing power leader Industrial Fulian just released its 2025 annual report. Many people’s first impression is: revenue surpassing 900 billion yuan, net profit soaring by 50%—these are indeed impressive. But what’s truly worth paying attention to are three more important signals hidden in this annual report: the inflection point of growth, the quality of profits, and the explosive drive of AI computing power. Connecting these clues reveals that the company is entering a new stage.

Growth Inflection Point: Performance Begins to Accelerate Significantly

Looking at the comparison data over two years, the changes are very clear. In 2024, revenue grew approximately 27.9% year-over-year, and net profit increased about 10.3%. In 2025, revenue reached 902.87 billion yuan, up 48.22% year-over-year; net profit was 35.286 billion yuan, up 51.99%.

In other words, the company’s revenue growth rate jumped from over twenty percent to nearly fifty percent. Even more striking is profit growth—rising from just over ten percent to fifty percent. If you plot these two years’ performance as a line, the growth curve becomes noticeably steeper. In the capital markets, such a change often signals a “turning point.”

Many companies can maintain stable growth, but few can truly achieve “acceleration.” Once entering this accelerated phase, the market’s valuation logic for the company often shifts.

Profit Quality: Not Just Scale Expansion

Many people worry whether performance growth is merely due to selling more products. From the annual report data, that’s not the case this time. A key signal is that profit growth outpaces revenue growth. This usually indicates that the company’s profit structure is improving.

Looking at quarterly data, Q3 net profit was 10.373 billion yuan; Q4 net profit reached 12.799 billion yuan. Two consecutive quarters with profits exceeding 10 billion, and still continuing to grow.

Meanwhile, several core indicators also hit new highs: EPS: 1.78 yuan, up 52.14% year-over-year; ROE: 21.65%, up 5.8 percentage points.

The change in gross margin is also interesting. Since Q2, the company’s comprehensive gross margin has begun to rise quarter by quarter, with continuous improvement in the second half of the year. This usually indicates two things: first, the product mix is upgrading toward higher-value segments; second, production efficiency and scale effects are being unleashed.

Cash flow has also improved significantly. Operating cash flow in Q3 was still negative at -5.548 billion yuan, but in Q4 it directly turned positive to 9.378 billion yuan, ultimately bringing the full-year operating cash flow into positive territory at 5.238 billion yuan.

In simple terms, not only is the company earning more, but the quality of its earnings is also higher.

AI Computing Power: The True Growth Engine

So, the question is: why did performance suddenly accelerate? The answer is quite clear—explosive growth in AI infrastructure.

In 2025, the company’s cloud computing revenue reached 602.679 billion yuan, up 88.7% year-over-year. Among them, revenue related to AI servers for cloud service providers increased over threefold. This means the company is deeply involved in global AI computing infrastructure development.

Moreover, in AI server solutions, the company is deploying both GPU servers and ASIC servers, with both lines growing rapidly.

Network equipment is even more explosive. As AI cluster scales expand, demand for 800G high-speed switches has exploded, with related revenue increasing 13 times year-over-year. In the next phase, the industry continues to upgrade, with 1.6T switches and CPO photonic-electronic co-packaging technology. Once these new technologies are scaled up, the demand for computing infrastructure will further increase.

At the same time, AI terminals are creating new opportunities. As AI smartphones become more widespread, the company’s shipments of precision components have also achieved double-digit growth.

In other words, from cloud computing to terminal devices, the entire AI industry chain involves the company.

Dividends: Real Cash “Easter Egg”

Besides performance, another point investors care about in this annual report is dividends. The company plans to distribute 6.5 yuan per 10 shares. The total cash dividends (including interim) for the year reached 19.451 billion yuan, with a cash dividend payout ratio of 55.12%, setting a new record.

In the A-share market, few companies can maintain high dividends and high payout ratios over the long term. This reflects the company’s stable profitability and ample cash flow. For long-term value investors, such consistent and stable cash returns are not only signs of sound management but also a core part of the company’s value, further strengthening market confidence in its long-term development.

To sum up the core logic of this annual report in one sentence: an inflection point of growth has appeared, profit quality has improved, and AI computing power is driving stronger growth. When a company exhibits all three, its development stage often shifts.

Of course, short-term market fluctuations are unpredictable. But in the long run, companies that can withstand cycles are usually those in major tracks with sustained profitability. In the wave of AI computing power, Industrial Fulian has clearly positioned itself at the center stage.

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