CHT Security (7765) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached NT$1.182bn ($1,181,763 thousand), up 21% year-over-year; net profit after tax was NT$251m ($250,502 thousand), up 13% year-over-year; EPS was NT$6.16, up 2% year-over-year.

• All business lines grew, with recurring revenue up 8.7% and overseas revenue up 233% year-over-year.

• Management remains cautiously optimistic for double-digit growth in 2026, supported by strong AI-driven cybersecurity demand and robust order backlog.

• Earnings per share for H1 2026 were NT$6.16 basic and NT$6.14 diluted, compared to NT$6.01 and NT$5.99 in the prior year.

Financial highlights

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

• H1 2026 net profit after tax was NT$251m, up 13% year-over-year; EPS was NT$6.16.

• Gross margin for H1 2026 was 46%, operating margin 25%, and net profit margin 21%.

• Free cash flow for H1 2026 was NT$117m; net cash flows from operating activities were $134,552 thousand.

• Cash dividend of NT$9.66/share (total NT$390m) paid in July 2026, representing a 100% earnings payout after statutory reserve.

Outlook and guidance

• Management expects double-digit growth for 2026, driven by AI cybersecurity demand and steady recurring revenue.

• Q3–Q4 orders on hand are approximately NT$600–700m.

• New proprietary AI cybersecurity products and overseas expansion are expected to support future growth.

• The company continues to invest in strategic equity and bond holdings, including TSMC bonds and CyCraft Technology shares.