Abstract
Chunghwa Telecom will release its quarterly results on February 03, 2026, Pre-Market, and investors are watching for low-single-digit revenue growth supported by resilient margins, steady core services, and expanding information and communication technology contributions.Market Forecast
The market’s current expectation points to a modest year-over-year increase in Chunghwa Telecom’s revenue this quarter, with margins broadly stable relative to recent performance; the latest reported gross profit margin was 37.14% and the net profit margin was 16.30%. The main business mix continues to be anchored by mobile and fixed-line connectivity, with mobile services benefiting from sustained 5G adoption and fixed broadband ARPU upgrades, while the most promising segment remains Information and Communication Technology services, which registered robust momentum and is positioned to outpace the core telecom rate of growth.The brightest growth potential is in Information and Communication Technology services, which delivered 8.00 billion in revenue last quarter and rose 14.50% year over year on expanding demand for data center, cloud, cybersecurity, and AI-related enterprise solutions.
Last Quarter Review
Chunghwa Telecom’s previous quarter delivered total revenue of 57.92 billion, a gross profit margin of 37.14%, net income attributable to stockholders of the parent company of 9.44 billion, a net profit margin of 16.30%, and adjusted EPS was not disclosed; sequentially, net profit declined by 7.15%. The quarter reflected resilient core telecom operations and disciplined cost control, with operating efficiency supporting stable profitability through the cycle despite seasonal device revenue mix.Main business highlights showed mobile services revenue of 17.18 billion, fixed network services revenue of 20.24 billion, products revenue of 10.18 billion, Information and Communication Technology services revenue of 8.00 billion, and other revenue of 2.32 billion; within these, mobile service revenue grew 3.30% year over year and fixed broadband revenue grew 3.20% year over year, while ICT services advanced 14.50% year over year on enterprise demand.
Current Quarter Outlook (with major analytical insights)
Core Connectivity: Mobile and Fixed Network Services
Mobile services remain a steady pillar for quarterly performance, supported by continued migration to higher-value 5G plans and stable postpaid ARPU trends. The company’s recent momentum in 5G user share and penetration among smartphone users underscores a structural improvement in service mix and capacity utilization, which typically translates to more durable service revenue growth even as competitive promotions ebb and flow across the calendar. Fixed network services are benefiting from sustained upgrades into higher-speed tiers and effective bundling strategies that encourage customer retention and incremental monetization through value-added offerings.This quarter’s mix is likely to show seasonal device sales normalization after peak launch cycles, which can temporarily weigh on gross margin as the product category carries different margin characteristics than connectivity services. However, the service margin profile remains resilient, thanks to a scaled network and improving traffic efficiency, which tends to anchor overall profitability despite short-term fluctuations in device volumes. The most important watchpoint for investors is whether service revenue growth in mobile and fixed-line can maintain the recent low-single-digit trajectory without disproportionate promotional pressure, as this dynamic has a direct bearing on both service-level margins and consolidated operating income.
Service quality initiatives, including high-speed migration and curated content bundles, are expected to contribute to ARPU durability this quarter. Management’s operating discipline around network opex and customer acquisition costs should help sustain margin stability, especially if device contributions moderate post-holiday. On balance, we expect core connectivity revenues to post a modest year-over-year increase, with gross profit margin holding near recent levels and consolidated net profit margin remaining in a stable range absent unexpected expense spikes.
Information and Communication Technology Services
Information and Communication Technology services have become the strongest growth vector, with recent double-digit year-over-year expansion driven by data center, cloud, cybersecurity, and AI-linked enterprise workloads. The business has benefited from multi-year investment in infrastructure and capabilities, including expanding domestic and international footprints for data centers and managed services, which are critical to capturing rising customer demand for hybrid cloud, secure connectivity, and AI-enabled applications. Project execution timelines and backlog conversion will be key to sustaining the momentum observed last quarter, as the segment’s revenue cadence can be influenced by the phasing of large enterprise contracts.This quarter, the ICT portfolio is positioned for continued growth, supported by robust pipelines in cybersecurity services and cloud migration projects, alongside enterprise connectivity solutions that complement core telecom offerings. Strategic initiatives around AI development and productization are laying groundwork for future monetization, and the presence of dedicated subsidiaries focused on security and AI accelerates commercialization cycles as enterprise budgets prioritize resiliency and intelligence in digital infrastructure. Revenue mix enhancements from ICT also have favorable spillover effects, enabling higher-value cross-selling into existing corporate accounts and underpinning multi-year engagement models.
Investors should monitor commentary on data center utilization, order intake for cybersecurity services, and the timing of AI-related projects across domestic and overseas operations. While ICT margins can vary by product line and deployment complexity, the incremental scale achieved over recent quarters supports a path toward improving blended margins through service standardization and economies of scale. If large projects reach revenue milestones within the quarter, ICT growth is likely to exceed the core telecom rate, underpinning consolidated revenue and offering a partial offset to any seasonally softer device contributions.
Key Stock Price Drivers This Quarter
This quarter’s share performance will be most sensitive to service revenue trajectory, margin commentary, and the visibility of ICT growth drivers in the near-term pipeline. Investors will parse management’s qualitative outlook on mobile ARPU stability and fixed broadband upgrade rates, as these directly influence service mix and operating leverage. Any indication of elevated promotional intensity that could compress service margins would be closely scrutinized, while signs of disciplined acquisition costs and steady churn rates would support sentiment around earnings resilience.The pace and scale of enterprise ICT deployment is the second key determinant of investor reaction, particularly around data center bookings, cybersecurity engagements, and cloud integration projects. The market will look for confirmation that the double-digit ICT growth seen last quarter is sustainable into the current quarter, with commentary on backlog, win rates, and cross-border execution a practical proxy for near-term revenue conversion. Clear signals about project phasing and capacity expansion can help bridge expectations on the timing of revenue and EBIT contributions from this segment.
Lastly, guidance characterization and capital allocation commentary can influence the stock’s near-term path. Investors will pay attention to management’s confidence in delivering low-single-digit consolidated revenue growth alongside margin stability, given the seasonal mix and cost backdrop. While quarterly variations in product revenue and wage costs can introduce noise, steady service economics and an expanding ICT base remain the primary anchors for the earnings profile. Any upgrades to medium-term digital services targets or incremental clarity on commercial AI rollouts would further support constructive valuation narratives, whereas softer-than-expected commentary on service growth or muted ICT conversion could constrain near-term upside.
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