Chunghwa Telecom (NYSE:CHT) Announces Earnings Results

Key Points

• Chunghwa Telecom beat expectations in the quarter, reporting EPS of $0.41 on revenue of $1.90 billion, while also lifting its FY 2026 guidance to 1.520-1.590 EPS.
• Growth was driven by the ICT segment, with consolidated revenue up 7.5% year over year to a first-quarter record and ICT revenue rising 25%, led by strong gains in cloud, IDC, and AIoT services.
• Core telecom demand remained healthy, as mobile revenue share and 5G adoption continued to improve, while the company also highlighted ongoing AI, data center, and submarine cable investments to support future growth.

Chunghwa Telecom (NYSE:CHT - Get Free Report) issued its quarterly earnings results on Thursday. The utilities provider reported $0.41 earnings per share for the quarter, hitting analysts' consensus estimates of $0.41, Zacks reports. The company had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.81 billion. Chunghwa Telecom had a net margin of 16.23% and a return on equity of 9.96%. Chunghwa Telecom updated its FY 2026 guidance to 1.520-1.590 EPS.

Here are the key takeaways from Chunghwa Telecom's conference call:

• Consolidated revenue reached TWD 59.99 billion (+7.5% YoY), a first-quarter record, with EPS of TWD 1.30, EBITDA of TWD 23.3 billion (38.85% margin) and management saying all key metrics beat guidance.
• The ICT business is a major growth driver—group ICT revenue rose 25% YoY, recurring ICT +11%, with IDC +29%, Cloud +43%, AIoT +26% and a record ICT order intake of TWD 20 billion.
• Consumer network traction remains strong—mobile revenue share hit a historic 41.1%, 5G subscriber share 39.4% (5G penetration ~48% of smartphones), and fixed broadband ARPU rose to TWD 818, supporting ongoing service revenue growth.
• Company is scaling AI and network investments—rolling out 5G SA for select verticals, launching the homegrown CHT AI Factory and monetizing AI data-center services, while expanding submarine cable capacity by 18 Tbps to bolster international connectivity.
• 2025 cash dividend set at TWD 5.2 per share with a payout ratio of 104.2%, signaling strong shareholder returns but a payout above 100% that investors may watch for sustainability.

Chunghwa Telecom Trading Up 0.9%

Chunghwa Telecom stock traded up $0.39 during trading hours on Friday, hitting $43.75. The stock had a trading volume of 92,152 shares, compared to its average volume of 129,239. The business's 50 day simple moving average is $42.88 and its 200-day simple moving average is $42.38. Chunghwa Telecom has a one year low of $39.28 and a one year high of $47.03. The stock has a market cap of $33.94 billion, a price-to-earnings ratio of 26.68, a P/E/G ratio of 5.81 and a beta of 0.29. The company has a quick ratio of 1.29, a current ratio of 1.45 and a debt-to-equity ratio of 0.06.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Compound Planning Inc. boosted its position in Chunghwa Telecom by 5.6% during the 4th quarter. Compound Planning Inc. now owns 10,352 shares of the utilities provider's stock worth $432,000 after buying an additional 550 shares during the period. Invesco Ltd. grew its holdings in Chunghwa Telecom by 9.7% during the 4th quarter. Invesco Ltd. now owns 15,398 shares of the utilities provider's stock worth $642,000 after acquiring an additional 1,356 shares during the last quarter. Corient Private Wealth LLC increased its position in Chunghwa Telecom by 5.8% in the 4th quarter. Corient Private Wealth LLC now owns 34,385 shares of the utilities provider's stock valued at $1,434,000 after acquiring an additional 1,880 shares during the period. Millennium Management LLC raised its stake in shares of Chunghwa Telecom by 62.7% during the fourth quarter. Millennium Management LLC now owns 109,184 shares of the utilities provider's stock valued at $4,554,000 after acquiring an additional 42,071 shares during the last quarter. Finally, Inspire Investing LLC acquired a new position in shares of Chunghwa Telecom during the fourth quarter worth $75,000. Institutional investors and hedge funds own 2.11% of the company's stock.

Wall Street Analyst Weigh In

CHT has been the subject of several research analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Chunghwa Telecom in a research report on Monday, April 20th. Zacks Research upgraded Chunghwa Telecom to a "hold" rating in a research note on Monday, January 12th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has a consensus rating of "Hold".

Chunghwa Telecom Company Profile

Chunghwa Telecom Co, Ltd. is the largest integrated telecommunications service provider in Taiwan, serving both consumer and enterprise customers across the island and through international telecommunications links. The company offers a full range of voice, data and multimedia services and operates as the incumbent fixed-line operator while also competing in mobile, broadband and enterprise markets. Its network footprint and traffic interchange capabilities support domestic communications and cross-border connectivity for carriers and multinational businesses.

Chunghwa Telecom's product and service portfolio includes fixed-line telephony, mobile services (including 4G and 5G wireless access), broadband internet (DSL and fiber-to-the-home), and IPTV.

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