FPT Update- BUY

Although a slowdown in global IT services still weighed on the company’s net revenue growth in 3Q2025, improvements in signed revenue promise to warm up the segmented performance in the following quarters. Meanwhile, the telecom segment continued to underpin the overall EBT. We maintained our target price for the stock at VND122,400/share by 1H2026. BUY.

Net revenue and EBT climbed by 8.2% YoY and 16% YoY in 3Q2025, bringing FPT’s 9M2025 figures to VND49,887bn (+10.3% YoY) and VND9,540bn (+17.6% YoY), respectively. A jump of 229% YoY in financial profit along with 35.8% YoY in profits from affiliates contributed to propel the EBT. Global IT and telecom services remain the company’s two pillars.

The global IT services segment witnessed a significant improvement of 42% YoY in signed revenue in 3Q, though net revenue and EBT growth – 10% and 5.9% YoY respectively in 3Q – were still depressed by low signed revenue in previous quarters. Digital transformation services (DX), the crucial drivers occupying 48% of the segmented revenue, grew by 24.6% YoY in 3Q and 19% YoY in 9M. AI Factories in both Vietnam and Japan have yet to record notable enhancement.

The telecom services segment sustained as the bright spot propping up the overall results, generating an EBT upturn of 26.3%% YoY in 3Q and 21.3% YoY in 9M. Revenue growth of 11.5% YoY in 9M was bolstered by an encouraging 15% YoY surge in broadband services fueled by market share, subscriber, and price increases.

Other subordinate segments, such as domestic IT services and education, supported the overall EBT growth despite muted revenue. Domestic IT services delivered a 32% YoY rise in EBT in 9M (largely driven by a 3Q provision reversal) while net revenue climbed up 1.6%. The segment has recently found an encouraging momentum in government projects (while the banking sector and enterprises stayed dim), which are expected to support its performance in the coming time. Meanwhile, the education business remained sluggish, as anticipated by the company, with modest enrolment growth attributed to rising competition from public schools likely to persist into next year.

We project net revenue and EBT for FPT at VND70,892bn (+12.8% YoY) and VND12,956bn (+17% YoY) in 2025, 1% higher than our prior update. The respective growth was projected at 14.4% YoY and 15.1% YoY for 2026.