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FPT Corporation (FPT VN) – Q1 2026 – Strong Profit Growth and Accelerating AI-Driven Expansion
Summary of Q1 2026 results and outlook of FPT Corporation (FPT VN)
- Deconsolidation of FPT Telecom JSC (FOX) from the financial statements. After the transfer of State ownership representation in FOX (50.2%) to the Ministry of Public Security, FOX will be accounted for under the equity method. This is largely an accounting change, reducing reported revenue while profit attributable to shareholders is unaffected. Comparisons with 2025 figures are presented on a like-for-like basis.
- Net revenue increased 8.7% y/y. Global IT services (72.4% of total revenue) grew 10.4% y/y, reflecting the impact of slower backlog growth in H1/2025 (+4.7% y/y) when rapidly evolving U.S. tariff policies and geopolitical tensions prompted international clients to temporarily defer technology spending. Growth was driven by the Japan market (+20.0% y/y), while Europe maintained strong momentum as a fast-growing region (+44.4% y/y); in contrast, growth in the US and APAC remained subdued. Notably, FPT recorded a robust 22.2% y/y increase in backlog, extending the acceleration trend since H2/2025. In the domestic market, IT revenue rose 14.2% y/y, supported by continued traction from the Made-by-FPT ecosystem, the Education segment declined 4.0% y/y, affected by slowdown enrollment, while Telecom maintain steady growth of 12.6% y/y bolstered by robust broadband and PayTV subscription.
- Net profit rose 14.4% y/y to VND2.5tn, supported by efficiency gains and solid associate performance. Operating profit outpaced revenue growth (+16.7% y/y) as gross margins remained stable while SG&A declined from 19.6% to 17.7% of net sales, indicating efficiency gains from AI adoption. Income from associates surged 41.1% y/y, while net financial income fell 69.1% y/y due to the absence of large FX gains last year.
- For the remaining 9M, we expect revenue growth to accelerate as large contract wins in H2/2025 and solid Q1 order intake points to stronger revenue recognition in the coming quarters. Beyond the near term, FPT’s 2026–2028 strategy positions AI as the core growth driver, focusing on the data and application layers where it has established capabilities. The strategy is supported by global technology partnerships, selective infrastructure investment, and talent pipeline development through its education platform. Together with sustained digital transformation demand and accelerating enterprise AI adoption, supporting our expectation of continued growth, with earnings projected to rise year-over-year in 2026 and a 2027–2030 CAGR of 17.1%.
Read our previous analysis on FPT’s quarterly earnings.
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