Chunghwa Telecom (NYSE:CHT) reported second-quarter 2026 results that exceeded the high end of its guidance, with management citing growth in information and communications technology services, core telecom operations, handset sales and overseas projects.
President Lung Shih-Lin said second-quarter revenue, operating income, net income and earnings per share all surpassed the company’s expectations. Consolidated revenue rose 8.2% year over year to TWD 61.36 billion, the company’s highest second-quarter revenue since 2010. Earnings per share increased to TWD 1.38 from TWD 1.31 a year earlier, representing the highest second-quarter EPS in a decade.
AI Data Centers and ICT Growth
Management highlighted its continued investment in artificial intelligence infrastructure. On the day of the call, Chunghwa Telecom announced the start of operations at its newly built AI data center in Lunping, Taoyuan. The facility is expected to add as much as 36 megawatts of capacity once fully built out.
The company also signed a memorandum of understanding with the Taiwan Stock Exchange in July to provide dedicated colocation capacity at an AI data center under construction in Taichung. President Lin said the projects demonstrate the company’s ability to translate AI infrastructure investment into long-term financial returns.
Chunghwa Telecom is positioning itself as a regional “Three A’s” hub, combining resilient sea-land-sky connectivity, all-photonics networking through its IOWN initiative, and an AI hub linking distributed computing resources across Asia-Pacific. The company said it jointly established the IOWN AI Fund with global partners in June to help build the IOWN ecosystem and pursue technology-investment opportunities.
ICT revenue climbed 32% year over year in the second quarter, while recurring ICT revenue increased 9%. Revenue from big data services rose 167%, cybersecurity revenue increased 34%, and IDC revenue grew 14%. Management attributed big data and cybersecurity gains to recognition of larger public-sector projects, while IDC growth was supported by installation projects for manufacturing customers.
Second-quarter ICT order intake, measured by contract value, increased 30% year over year. The company said total ICT contract value secured in the first half had already matched the full-year total achieved in 2025.
- Major second-quarter wins included large-scale AI data center projects.
- The company secured a Taipower energy-storage project and several smart-surveillance projects for correctional institutions.
- Chunghwa Telecom said it became the first telecom operator to offer cloud-based encryption-sharing services to Taiwan’s financial industry.
Core Telecom Operations Remain Steady
In Taiwan’s mobile market, Chunghwa Telecom said its mobile revenue market share reached a record 41.2%, while subscriber market share was 39.8%, according to the telecom regulator. Its 5G market share stood at 39.4%, and 5G penetration among smartphone users approached 49% at the end of June.
Mobile service revenue increased 3.2% year over year, ahead of the industry average, while postpaid average revenue per user increased TWD 13, or 2.4%. The average monthly fee uplift from customers migrating to 5G remained 36%, and postpaid churn was 0.36%.
Roaming revenue rose 19% year over year, including a 42% increase in inbound roaming revenue, which management attributed to tourism demand and international travel activity.
Fixed-broadband revenue increased 3% year over year, and monthly ARPU rose TWD 20 to TWD 824. Subscribers using speeds of 300 megabits per second or more accounted for 42% of the fixed-broadband base, while subscribers using 1 gigabit-per-second service or higher increased 61% from a year earlier.
Consumer multi-play sign-ups, which combine mobile, fixed broadband and Wi-Fi services, rose 14% year over year and extended their growth streak to 18 consecutive quarters. Total over-the-top revenue increased 20%, while consumer cybersecurity subscribers remained above 1 million and grew 11% year over year.
International Projects Drive Segment Results
International subsidiaries posted aggregate revenue growth of 242% year over year, driven by large ICT project deliveries in the U.S. and Southeast Asia. U.S. revenue increased more than elevenfold, primarily because of AI supply-chain projects in Texas, while Southeast Asia revenue doubled on construction projects in Singapore and Vietnam.
The International Business Group’s revenue rose about 79% year over year, and its income before tax increased 31%. Management also cited contributions from the SJC2 and APRICOT submarine cables and stronger roaming revenue.
Satellite-services revenue increased 14% year over year, and satellite-related ICT contracts secured in the first half exceeded TWD 200 million. International private leased-circuit revenue rose 8%, supported by the SJC2 and APRICOT cables.
During the question-and-answer session, management said it sees several billion Taiwan dollars of AI supply-chain opportunities in the U.S. over this year and the next two to three years. It added that IOWN remains at an early investment stage and that meaningful revenue from the initiative will take time to develop.
Cash Flow and Balance Sheet
Second-quarter EBITDA increased 4.1% to TWD 23.52 billion, with an EBITDA margin of 38.32%. First-half EBITDA rose 3.8% to TWD 46.82 billion.
First-half capital expenditures totaled TWD 9.85 billion, down 14.3% year over year, as mobile investment normalized after a peak phase of 5G deployment. The company expects a greater portion of annual capital spending to occur in the second half. Six-month free cash flow totaled TWD 21.89 billion.
As of June 30, Chunghwa Telecom reported a debt ratio of 31%. Excluding dividends payable, the adjusted debt ratio was 23.72%, down from 25.21% at year-end 2025. Its interest-bearing debt ratio was approximately 5%, while net debt to EBITDA stood at zero.
Management said the first-half performance gives it confidence in meeting its full-year targets, including its ICT revenue objectives.
About Chunghwa Telecom (NYSE:CHT)
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.
