CHT Security (7765) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached NT$1.182 billion, up 21% year-over-year; net income NT$251 million, up 13%; EPS NT$6.16, up 2% year-over-year.

• All three business lines—Internet security, professional services, and product sales—grew, with product sales up 95% year-over-year.

• Recurring revenue increased 8.7% year-over-year, accounting for 47% of total H1 2026 revenue.

• Overseas market revenue surged 233% year-over-year in H1 2026, driven by semiconductor and financial sector clients.

• The company’s financial statements received an unqualified review opinion from PwC.

Financial highlights

• Q2 2026 revenue was NT$584 million, up 26% year-over-year; H1 2026 revenue NT$1.182 billion, up 21%.

• H1 2026 gross margin 46%, operating margin 22–25%, net margin 21%.

• H1 2026 net income NT$251 million, up 13% year-over-year; EPS NT$6.16.

• Free cash flow in H1 2026 was NT$117 million.

• Cash and financial assets at June 30, 2026: NT$1.876 billion; cash and equivalents at June 30, 115: NT$1.213 billion.

Outlook and guidance

• Double-digit growth expected for 2026, supported by strong AI-driven cybersecurity demand and robust order backlog.

• H2 2026 outlook remains cautiously optimistic, with Q3–Q4 orders of NT$600–700 million.

• Continued focus on AI-enabled security, cloud/OT integration, and overseas expansion.

• The company expects no material impact from newly adopted or upcoming IFRS standards.

• Management continues to monitor climate change and regulatory impacts in accounting estimates.