The Arabian Internet and Communications Services Co. (solutions by stc, Mubasher reported) posted net profits of 1,241 million SAR for the first nine months of 2026, marking a 1.39% increase compared to 1,224 million SAR during the corresponding period in 2025, according to financial disclosures released on Tadawul.
Net Income Reaches 1.24 Billion SAR over Nine Months
- Nine-Month Growth: Net income reached 1.24 billion SAR, driven by a 9.22% increase in total revenues to 9.64 billion SAR.
- Third-Quarter Stagnation: Q3 net profit flatlined at 417 million SAR year-over-year, while dropping 7.95% against Q2 due to rising cost of revenues and higher Zakat provisions.
- Underlying Momentum: Adjusting for early retirement program expenses and non-recurring fair value gains, core net profit growth tracked at approximately 5% for both the quarter and the nine-month period.
Third-Quarter Revenue Expansion Offset by Cost Pressures
For the quarter ending September 30, 2026, Maaal noted that solutions delivered flat net earnings of 417 million SAR compared to the same period in the previous year. On a sequential basis, profit retreated 7.95% from the 453 million SAR reported in Q2 2026.
Top-line momentum remained active. Revenue grew 9.55% to 3.39 billion SAR, up from 3.10 billion SAR in Q3 2025. On a quarterly sequential basis, solutions saw revenues rise by 4.75% compared to 3.24 billion SAR in the previous quarter, driven by a 32.5% increase in digital services revenues and an 11.9% rise in managed IT and operational services. This expansion stemmed primarily from a 20.0% surge in core ICT services and a 4.9% increase in digital services.
But the balance sheet tells a more complex story regarding profitability. Total gross profit for the quarter rose 4.95% to 742 million SAR, as a 296.4 million SAR increase in revenues was partially absorbed by a 260.7 million SAR rise in the cost of revenues.
Early Retirement Program Increases Operating Expenses
Operating expenses climbed during the quarter, pressured by a 21 million SAR increase in general and administrative outlays. This occurred despite a 13 million SAR reduction in selling and distribution expenses.
Net other expenses widened to 30 million SAR, compared to 6 million SAR in the prior year's third quarter. Mubasher specified that this variance was driven primarily by 20 million SAR allocated to an ongoing early retirement program. Zakat and tax provisions added a further 1 million SAR headwind.
When evaluated sequentially against Q2 2026, the company faced a 45.4 million SAR contraction in gross profit. This resulted from a 199.2 million SAR jump in revenue costs outpacing a 153.8 million SAR top-line gain, compounded by a 15 million SAR increase in Zakat and tax expenses.
| Financial Metric | Q3 2026 (SAR) | Q3 2025 (SAR) | YoY Change (%) |
|---|---|---|---|
| Revenue | 3.39 Billion | 3.10 Billion | +9.55% |
| Gross Profit | 742 Million | 707 Million | +4.95% |
| Operating Profit | 490 Million | 462 Million | +6.06% |
| Net Profit | 417 Million | 417 Million | unspecified |
Nine-Month Performance Metrics
For the nine-month period ending September 30, 2026, cumulative revenues advanced 9.22% to 9.64 billion SAR, compared to 8.82 billion SAR in 2025, driven by a 19.8% increase in basic ICT services and a 1.5% growth in managed IT and operational services. Gross profit for the nine-month period increased by 137 million SAR as an 814 million SAR rise in revenues outweighed a 677 million SAR increase in revenue costs. Operating profit expanded 9.07% to 1.40 billion SAR, up from 1.28 billion SAR, while total gross profit for the nine months rose 6.92% to 2.12 billion SAR compared to 1.98 billion SAR in the corresponding period of 2025.
Basic earnings per share (EPS) for the current period edged up to 5.21 SAR, compared to 5.14 SAR in the first nine months of the previous year. Mubasher highlighted that the nine-month net profit included 23 million SAR in early retirement outlays alongside a 21.3 million SAR increase in operating expenses stemming from a 39.5 million SAR rise in general and administrative expenses despite an 18.2 million SAR reduction in selling and distribution expenses. Conversely, the comparable 2025 period benefited from 20 million SAR in non-recurring fair value gains.
Removing these non-operating items normalizes the year-to-date net profit growth rate to approximately 5%, aligning with the operational performance trajectory tracked by corporate management.
