stc Group Q1 2026 net profit rises 12% to 3,696 million riyals as revenues grow 3.8%

Saudi Arabia's stc Group reported a strong start to 2026, achieving a 12% year-on-year increase in net profit for the first quarter ending March 31, excluding non-recurring items, with net profit reaching 3,696 million Saudi riyals. Revenues grew 3.8% to 19,939 million riyals, equivalent to nearly $5.3 billion, while gross profit rose 7.4% to 9,772 million riyals and operating profit climbed 11% to 3,978 million riyals, according to the company's preliminary financial results announced this week.

The performance reflects robust operational efficiency and strategic execution, as highlighted by stc Group CEO Eng. Olayan Alwetaid. He noted that the group began the year with solid momentum, translating its strategy into tangible growth, including a 7.1% rise in EBITDA to 6,557 million riyals. This underscores stc's role as a key player in Saudi Arabia's digital economy, with revenue boosts from commercial units up 5.2%, carriers and wholesale segments up 6.2%, and subsidiaries contributing a 5.8% increase, as detailed in reports from Argaam and Saudi Gazette.

In line with its dividend policy approved by the general assembly, stc announced a distribution of 0.55 riyals per share for the first quarter, signaling confidence in sustained profitability. Compared to the prior year, when net profit was 3,649 million riyals on revenues of 19,210 million, the latest figures show steady progress despite a modest revenue uptick. Operating improvements, including lower zakat and income tax expenses by 64 million riyals, further supported the bottom line.

This Q1 success builds on stc's full-year 2025 results, where revenues hit a record 77.8 billion riyals, up 2.5%, with net profit growing 12.5% excluding one-offs. As one of Saudi Arabia's largest telecom firms, stc's growth matters amid the kingdom's push for digital transformation under Vision 2030, affecting millions of consumers, businesses, and investors reliant on its expanding infrastructure. Strong finances position the group to invest in 5G, cloud services, and ICT solutions, potentially driving further market dominance.

Looking ahead, analysts expect stc to maintain this trajectory, supported by diversified revenue streams and cost discipline. The results also come amid a mixed earnings season in Saudi markets, with peers like Solutions by stc posting a 2.5% net income rise to 370 million riyals on 6.3% higher revenues. For stc Group, the next steps include full Q1 details in upcoming reports and continued focus on long-term competitiveness in the region's fast-evolving telecom sector.