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FPT Corporation (FPT VN) – FY 2025 – Strong Earnings Growth and Global IT Expansion
Summary of FY 2025 results and outlook of FPT Corporation (FPT VN)
- In 2025, FPT demonstrated strong execution and agile adaptation amid persistent global economic challenges. Geopolitical tensions and shifting tariff policies weighed on clients’ business planning and led to the postponement of IT investment decisions, while rapid AI adoption disrupted traditional IT service models through heightened pricing pressure and stricter efficiency requirements. Against this backdrop, FPT actively adapted its operations by deploying its in-house AI capabilities across delivery processes and service offerings to enhance efficiency and solution quality, while continuing to roll out initiatives to move up the value chain and expand presence in global markets. These efforts enable the company to secure a record number of large-scale contracts as well as record deal size during the year. As global macro conditions gradually stabilize and corporate clients begin to resume IT spending, FPT appears well positioned to benefit, evidenced by early signs of backlog re-acceleration in H2/2025.
- Net revenue increased 11.6% y/y. Global IT outsourcing (50.5% of total revenue) grew 14.3% y/y, led by the Japan market (+25.4% y/y), with Europe emerging as a fast-growing region (+36.3% y/y), while growth in the US and APAC was modest. Notably, FPT recorded a robust 23.2% y/y increase in backlog, with a clear acceleration in deal wins during H2/2025. In the domestic market, domestic IT revenue rose 11.5% y/y, led by continued growth momentum from the Made-by-FPT product ecosystem. Telecom services also maintained steady momentum, with revenue increasing 10.8% y/y, supported by strong broadband subscription growth. Meanwhile, the Education segment remained broadly stable amid intensified competition in the local market.
- Net profit rose 19.1% y/y to VND 11.2tn, supported by favorable exchange rate movements and higher investment income. Operating profit rose 4.5% y/y, trailing revenue growth as the gross profit margin narrowed amid pricing pressure in global IT services. Operating costs remained well controlled, with SG&A stable at 21.3% of net sales. Meanwhile, net financial income surged ~11x y/y, driven by higher short-term investment balances, strong dividend income from investment and the appreciation of foreign currencies in which FPT generates a substantial portion of its revenue.
- For 2026 and the medium term, we expect growth to accelerate. The recent securing of several large-scale contracts points to sustained demand for digital transformation, cloud services, and data analytics solutions, while rapid advances in AI are accelerating enterprise adoption and creating new consulting opportunities. In parallel, recent investments in local firms across key overseas markets have expanded FPT’s global footprint, strengthening its ability to deliver end-to-end solutions and secure larger-scale contracts. These developments underpin our expectation of a return to high growth, with earnings projected to increase in both 2026 and 2027.
Read our previous analysis on FPT’s quarterly earnings.
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