FPT Q1 2026: Revenue Drops 22% After Deconsolidating FPT Telecom, But Parent Profit Rises 14.4%

Overview

FPT Corporation (FPT) has deconsolidated its former subsidiary FPT Telecom after transferring 50.2% of the telecom unit’s capital to the Ministry of Public Security in 2025. The accounting change, effective January 1, 2026, caused Q1 group revenue to drop 22% year-on-year to VND 12,500 billion, but parent-company pre-tax profit rose 14.4% to VND 2,487 billion. The move improves FPT’s financial ratios by removing the capital-intensive telecom business from its consolidated statements.

Key Facts

• FPT transferred 50.2% of FPT Telecom’s capital to the Ministry of Public Security in 2025 via SCIC.
• FPT deconsolidated FPT Telecom from January 1, 2026, as its ownership fell below 50%.
• Q1 2026 group revenue fell 22% year-on-year to VND 12,500 billion.
• Excluding telecom, FPT’s Q1 revenue grew nearly 9% year-on-year.
• Parent-company pre-tax profit rose 14.4% to VND 2,487 billion.
• Group pre-tax profit declined 7.2% to VND 2,804 billion due to the deconsolidation.
• Total assets decreased by VND 19,552 billion to VND 68,587 billion as of March 31.
• Financial debt fell 24% to approximately VND 16,000 billion.
• Long-term financial investments surged 123% to VND 10,525 billion as FPT Telecom became an associate.
• FPT still manages FPT Telecom’s daily operations and receives annual dividends of VND 450-500 billion.

What Happened

FPT changed its accounting treatment for FPT Telecom after the Ministry of Public Security received a 50.2% stake from the State Capital Investment Corporation (SCIC) in 2025. Previously, FPT held over 45% but still consolidated the telecom unit. Since January 1, 2026, FPT no longer consolidates FPT Telecom, treating it as an associate instead.

In Q1 2026, FPT’s consolidated revenue dropped 22% to VND 12,500 billion, primarily due to the exclusion of FPT Telecom’s revenue. However, excluding telecom, FPT’s core IT services revenue grew 11% to VND 10,842 billion, accounting for 87% of group revenue. Education revenue fell 4% to VND 1,638 billion. Group pre-tax profit fell 7.2% to VND 2,804 billion, but parent-company pre-tax profit increased 14.4% to VND 2,487 billion, reflecting the removal of telecom’s capital costs.

Market Context

FPT shares closed at VND 75,000 on April 15, 2026, down 1.31% with volume of 9.5 million shares on HOSE. The deconsolidation is a structural change that improves FPT’s return on equity and debt ratios, as the telecom business was capital-intensive with high infrastructure investment. The broader IT services sector in Vietnam has been growing, supported by digital transformation demand.

Strategic Significance

The deconsolidation allows FPT to present a cleaner financial profile focused on its higher-margin IT services and education segments. By removing FPT Telecom’s debt and capital expenditure, FPT’s balance sheet becomes more attractive for investors seeking exposure to Vietnam’s technology sector. FPT retains operational control and receives steady dividends from FPT Telecom, which may benefit from government infrastructure projects. The move aligns with FPT’s strategy to emphasize its core technology business.

What to Watch

• Q2 2026 earnings release to assess the full impact of deconsolidation on margins and cash flow.
• FPT Telecom’s standalone financial performance and dividend payments to FPT.
• Any further capital allocation changes, including potential M&A or share buybacks.
• Updates on FPT Telecom’s government-related infrastructure contracts.
• Foreign ownership trends on HOSE as FPT’s financial profile shifts.