Chunghwa Telecom NYSE: CHT said its third-quarter 2026 revenue, operating income, net income, EBITDA and earnings per share exceeded the upper end of its guidance, with revenue and EPS reaching the company’s highest levels for any third quarter.
President Rong-Shy Lin said the company’s results reflected continued leadership in Taiwan’s mobile and fixed-broadband markets, accelerating ICT activity and a one-time gain from an asset revitalization project. He said management was confident it would exceed its full-year forecast.
Third-Quarter Financial Results
Chief Financial Officer Audrey Hsu said consolidated revenue rose 16.7% year over year to NT$67.59 billion in the third quarter. Income from operations increased 27.1%, while net income grew 29.5%. Earnings per share reached NT$1.57.
EBITDA increased 16.1% to NT$25.66 billion, producing an EBITDA margin of 37.97%, Hsu said. The company cited three primary sources of revenue growth: a one-time contribution from a subsidiary’s asset revitalization project, stronger product sales, and continued growth in its core telecom and ICT businesses.
Product sales benefited from higher handset average selling prices and volumes, increased 3C products and accessory sales, and contributions from Chunghwa Precision Test amid AI-related demand, according to Hsu.
For the first nine months of 2026, revenue increased 10.8% to NT$188.95 billion. Operating income rose 12.3% to NT$41.74 billion, net income grew 12.1% to NT$32.97 billion, and EPS rose to NT$4.25 from NT$3.79 a year earlier. Nine-month EBITDA increased 7.8% to NT$72.48 billion.
As of Sept. 30, total assets stood at NT$527 billion, down 1.7% from the end of 2025. The debt ratio was 25.19%, the current ratio was 135.78%, and net debt-to-EBITDA was zero. Operating cash flow for the first nine months increased 9.6% to NT$49.84 billion, while capital expenditures declined 6.5% to NT$16.17 billion. Free cash flow increased 19.6% to NT$33.67 billion.
Mobile and Broadband Growth
Lin said Chunghwa Telecom’s mobile revenue market share reached a record 41.2% during the third quarter, while subscriber market share was 39.9%, based on regulator data. Its 5G market share was 39.4%, maintaining the company’s leading position, he said.
The company’s 5G penetration among smartphone users reached 49.6% as of September and was expected to exceed 50% by year-end. The average monthly fee uplift from customers migrating to 5G remained at 40%, while postpaid churn was 0.41%.
Mobile service revenue increased nearly 3% year over year, driven by 5G adoption, high-end smartphone sales and an 18% increase in roaming revenue. Postpaid ARPU increased 2%, or NT$11, according to Lin.
In fixed broadband, revenue rose 3% and subscribers increased 0.7%. Sign-ups for service speeds of 300 Mbps or more grew 14.4%, while 1 Gbps-and-above sign-ups rose 42%. Customers using 300 Mbps or faster plans represented 43% of the fixed-broadband base. Fixed-broadband ARPU increased 1.6%, or NT$12.
The company also reported 13% growth in subscriptions to its multiple-play offerings, which combine mobile, fixed broadband and Wi-Fi services. Wi-Fi penetration among fixed-broadband subscribers reached 58%.
ICT, AI and International Expansion
Group ICT revenue increased 19% year over year in the third quarter, while recurring ICT revenue also rose 19%. Cloud revenue grew 45%, IDC revenue increased 26%, cybersecurity revenue rose 22%, and AIoT revenue increased 14%.
Lin said cloud and cybersecurity growth was driven primarily by transportation and financial-sector projects. IDC revenue posted its 10th consecutive quarter of year-over-year growth, supported by installation projects for high-tech companies. AIoT growth reflected smart-city and smart-building project deliveries.
Cumulative ICT order intake through September exceeded 1.4 times the company’s full-year 2025 level, with third-quarter order intake up 84% year over year. The increase was largely driven by government-related projects and enterprise IDC installations.
During the question-and-answer session, management said project-based ICT revenue remained larger in absolute terms than recurring revenue, though recurring revenue continued to grow. Tsai said project-based growth mainly came from IDC and cloud services, particularly international public cloud, while subscription cybersecurity services supported recurring revenue.
Hsu said IDC and cybersecurity are among the company’s most profitable ICT services because they are primarily recurring and supported by longer-term customer contracts. She noted that ICT projects generally carry lower margins than telecom services because of equipment and construction costs, but said the company expects margins to improve as recurring revenue increases and it works to enhance project profitability.
International subsidiaries increased revenue 8% year over year. U.S. revenue rose 27%, aided by AI supply-chain equipment deployment in California, while Southeast Asia revenue increased 3% on construction projects in Vietnam. IPLC revenue grew 33%, and satellite-related revenue increased 9.8%.
The company opened a Guatemala branch in October and secured a data-center construction project from the Guatemalan government, which Lin described as a milestone for expansion in Central and South America.
Network and AI Initiatives
Chunghwa Telecom said it expects standalone 5G population coverage to exceed 50% by the end of 2026, concentrated initially in metropolitan areas and along high-speed rail routes. Nationwide coverage is planned to follow in 2027, when consumers are also expected to gain access to network-slicing functionality.
Lin said the company expanded its collaboration with Google to broaden AI-enabled services and accelerate consumer adoption. In enterprise markets, management cited interest from financial and public-sector customers seeking to deploy AI models while retaining sensitive data within their own environments or in Taiwan.
Hsu said the company aims to support those customers using its AI data center and IDC facilities, private cloud, network capabilities, and CHT InventAI’s AI governance and AgentHub services. Management said recurring revenue is expected to play a larger role as its Lunping and AI data center capacity comes online for customers under long-term contracts.
About Chunghwa Telecom (NYSE:CHT)
Chunghwa Telecom Co, Ltd. is Taiwan's largest integrated telecommunications provider and the country's former state-owned telecommunications operator. The company was established in 1996 following the corporatization of Taiwan's Directorate General of Telecommunications and was subsequently privatized. Chunghwa Telecom is headquartered in New Taipei City, Taiwan.
The company provides fixed-line voice services, mobile communications, broadband internet access, and related digital communications products.
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