Saudi Arabia’s stc Group delivered record first-half 2026 revenue of SAR 40.11 billion ($10.69 billion), supported by continued subscriber growth, expanding digital services and sustained investment in next-generation infrastructure, reinforcing its position as the Kingdom’s largest telecommunications and digital technology provider.
The operator reported a 3.8% year-on-year increase in revenue, while gross profit rose 5.3% to SAR 19.64 billion. Operating profit climbed 7.8% to SAR 7.77 billion, and EBITDA increased 5.5% to SAR 12.97 billion. Underlying net profit grew 6.3%, excluding non-recurring items.
The company also announced a SAR 0.55 per share dividend for the second quarter of 2026, representing a total shareholder distribution of SAR 2.7 billion.
Subscriber growth underpins network expansion
stc continued to strengthen its market leadership through steady customer growth across both mobile and fixed broadband services.
The operator’s mobile subscriber base reached 30.3 million, an increase of 4.8% compared with the same period last year, while fixed broadband customers rose 3% to 6.1 million. The company also expanded its network footprint, increasing its portfolio to more than 12,000 5G towers and extending fiber connectivity to 3.87 million households, up 5.2% year on year.
The investments reflect growing demand for high-capacity connectivity driven by cloud computing, artificial intelligence and digital enterprise services.
Cloud, AI and fintech accelerate diversification
Beyond telecommunications, stc continued expanding its portfolio of digital businesses during the first half of the year.
Among the group’s key developments was the launch of stc cloud, powered by Oracle Alloy, positioning it as Saudi Arabia’s first sovereign cloud platform designed to provide locally governed cloud services that comply with national data sovereignty requirements.
The operator also progressed its planned joint venture with HUMAIN through subsidiary center3, continued its partnership with AST SpaceMobile to develop direct-to-device satellite communications, and expanded the operations of STC Bank, which recorded continued growth in customers, deposits and investment portfolios.
These initiatives form part of stc’s strategy to diversify revenue beyond traditional telecom services.
Strategic partnerships support Saudi Arabia’s digital economy
stc strengthened its role in national infrastructure development through new strategic partnerships and continued investment in digital ecosystems.
The company signed an agreement with ROSHN Group to deploy a neutral fiber-optic network for future phases of the SEDRA residential development in Riyadh, enabling multiple operators to provide services over shared infrastructure.
During the Hajj season, stc also deployed AI-powered connectivity solutions to support millions of pilgrims, maintaining network resilience while handling record levels of mobile data traffic across the Holy Sites.
The group further reinforced its sustainability credentials by publishing its seventh Sustainability Report, earning an AA ESG rating from MSCI, and maintaining investment-grade credit ratings from S&P, Fitch, Moody’s and Tassnief.
Digital infrastructure is becoming the core growth engine
The results demonstrate how telecommunications operators are increasingly generating growth through investments in digital infrastructure rather than relying solely on traditional connectivity services.
Cloud computing, AI platforms, digital banking, fiber networks, satellite communications and enterprise services are becoming central to operator business models as governments accelerate digital transformation initiatives. These investments are enabling telecom companies to create new revenue streams while supporting national ambitions to build resilient, technology-driven economies.
For stc, continued expansion across digital infrastructure positions the company at the center of Saudi Arabia’s Vision 2030 digital transformation strategy.
Why this matters
stc’s record first-half revenue highlights the evolution of Gulf telecom operators into diversified digital technology companies. Continued investment in cloud, AI, fintech, fiber and satellite communications is strengthening the group’s long-term growth prospects while supporting Saudi Arabia’s ambitions to become a regional leader in digital infrastructure and innovation.
Editor’s note
The latest results underscore a broader transformation taking place across the global telecommunications industry. As connectivity becomes increasingly commoditized, operators are creating value through integrated digital platforms that combine cloud services, artificial intelligence, financial technology and advanced network infrastructure. stc’s performance illustrates how sustained investment in digital ecosystems is driving both financial resilience and national digital competitiveness, positioning telecom operators as foundational enablers of future economic growth.
