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FPT Corporation (FPT VN) – 9M 2025 – Earnings Up 19% on AI Efficiency and Backlog Rebound
Summary of 9M 2025 results and outlook of FPT Corporation (FPT VN)
- Net revenue grew 10.3% y/y in 9M/2025. Global IT outsourcing (51.3% of total revenue) grew 12.8% y/y, though the pace was tempered by a slower order backlog in the first half, as global macro uncertainties prompted clients to delay investment decisions and adopt a more cautious approach to technology spending. In the domestic market, telecom services maintained steady momentum, up 11.6% y/y, supported by a 15.0% y/y surged in broadband subscriptions. Meanwhile, the Education and domestic IT segments were relatively stable amid intensified competition in the local market.
- Net profit rose 18.9% y/y to VND 8.2tn, bolstered by favorable exchange rate movements and higher investment income. Operating profit rose 5.5% y/y, trailing revenue growth as the gross profit margin narrowed amid pricing pressure in global IT services, with clients seeking cost efficiencies from AI adoption. However, the margin rebounded 1.7ppts in Q3, as the company also benefited from efficiency gains through AI-driven operations. Operating costs remained stable, with SG&A at 22.0% of net sales. Meanwhile, net financial income surged 229.2% y/y, driven by the appreciation of foreign currencies in which FPT generates substantial portion of revenue.
- Reaccelerating backlog momentum as global uncertainty subsides. In Q3, backlog surged 42.0% y/y, driven by the emergence of large-scale contract wins, bringing YTD backlog to VND29.4tn (+14.4% y/y). Management indicated that client engagements have resumed swiftly, with more constructive discussions underway. During the quarter, FPT continued to secure major digital transformation deals, including a USD100mn contract with a U.S. client for cloud migration, AI integration, and data analytics, and a record USD256mn deal with a leading Asian energy conglomerate to develop an end-to-end digital transformation ecosystem. The company also expanded its footprint in Japan through a strategic partnership with ANA Systems, the IT subsidiary of Japan’s largest airline group, to enhance innovation and operational efficiency in aviation.
- For Q4/2025, we expect revenue growth to remain moderate due to the previously softer backlog. Global IT growth is expected to soften to, while other segments remain steady.
- For 2026 and the medium term, we expect growth to rebound. The recent securing of several large-scale contracts indicates sustained demand for automation and digitalization, while rapid advancements in AI capabilities are prompting more enterprises to adopt, creating new consulting opportunities. Recent investments in local firms across key overseas markets further strengthened FPT’s global footprint, enhancing its capability to deliver end-to-end solutions and secure larger contracts. These developments support our expectation of a return to high earnings growth from 2026 onwards.
Read our previous analysis on FPT’s quarterly earnings.
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