Singtel profit rises 12% despite missing earnings estimates

Opening

Singtel, a Singapore-based telecom operator, reported higher annual profit on May 21 for the year ended March 2026. Underlying net profit rose 12% to S$2.77 billion (US$2.16 billion), while EBIT increased nearly 9% to S$1.50 billion (US$1.17 billion). The results fell short of the Visible Alpha estimate of S$2.82 billion (US$2.2 billion). The company warned that the Iran war could raise inflation and currency volatility across its Asian markets, with most key markets exposed as net energy importers, prompting a cautious near-term outlook.

Financial Performance

Contributions from associates Bharti Airtel and AIS rose 11% to S$1.96 billion (US$1.53 billion) during the reporting period. The underlying net profit increase of 12% outpaced EBIT growth of 9%, reflecting operational gains offset by the earnings estimate miss.

Forward Guidance and Strategic Investment

Singtel expects fiscal 2027 EBIT growth in the low- to mid-single digits. The company plans approximately S$3 billion (US$2.34 billion) in 2027 capital expenditure, with S$1.2 billion (US$937 million) allocated specifically for data centers and AI infrastructure.

As part of its data center modernization, Singtel will shut five older facilities in Singapore and shift operations to greener, AI-ready sites under Nxera, its data center business. The company will serve as Nvidia's cloud partner in South-east Asia, with the two organizations establishing a research center to design future facilities with power densities of 600 kW to 1 MW—up to 100 times the average data center capacity. This partnership aims to serve organizations with data-sovereignty needs, ensuring sensitive data is stored and processed within their own country.