Saudi Arabia's STC Group has recorded a remarkable growth in its financial performance during the first quarter of 2026, with revenues rising to approximately 19.9 billion riyals ($5.3 billion), marking an increase of 3.8%. The total profit also surged to 9.7 billion riyals ($2.6 billion), reflecting a growth of 7.4%, which indicates improved operational efficiency and the ongoing implementation of its strategy for expanding digital infrastructure both domestically and internationally.
According to preliminary financial results, operating profit climbed to 3.97 billion riyals ($1.06 billion), representing an 11% increase. Meanwhile, earnings before depreciation, amortization, interest, zakat, and taxes reached approximately 6.55 billion riyals ($1.75 billion), up by 7.1%.
Event Details
The group achieved a net profit of 3.69 billion riyals ($984 million), up by 12% after excluding non-recurring items. It also announced a distribution of 0.55 riyals ($0.15) per share for the first quarter in accordance with its approved distribution policy.
Commenting on these results, the group’s CEO, engineer Ali Al-Watied, stated that the results reflect a strong start to the year, emphasizing the company's ability to translate its strategy into tangible results that support its growth and enhance its role in the digital economy.
Background & Context
STC continues to implement its expansion projects, with Al-Watied noting progress on the Silklink telecommunications infrastructure project in Syria, in partnership with the Syrian sovereign fund, with an investment of 3 billion riyals ($800 million). The project involves the establishment of a fiber optic network extending over 4,500 kilometers, in addition to data centers and submarine cable stations, aimed at enhancing regional and international digital connectivity.
The group also continued to support major seasons, enhancing its readiness during the Riyadh Season and the month of Ramadan to serve millions of users, particularly in the holy mosques, with internet data traffic increasing by over 21% in the Grand Mosque and 40% in the Prophet's Mosque, amid a growing reliance on fifth-generation technologies.
Impact & Consequences
These results are a positive indicator of STC's ability to compete in the growing digital market, reflecting its strategy of localizing technologies and enhancing supply chains. This was manifested in the signing of several agreements during the 2026 Private Sector Forum, which boosts the growth of digital industries and enhances the competitiveness of the telecommunications and information technology sector.
The group has also enhanced its digital maturity by developing data governance practices, which contributed to its receiving two regional awards in this field, a step that reflects its progress in building an integrated digital ecosystem that supports innovation and improves decision-making quality.
Regional Significance
These results serve as evidence of the success of Saudi companies in adapting to global economic challenges, thereby enhancing their role in supporting digital transformation in the region. Additionally, expansion projects like the Silklink project reflect a trend towards strengthening digital infrastructure in Arab countries, contributing to improved digital connectivity and enhancing investment opportunities.
In conclusion, STC's results reflect the ability of Arab companies to achieve growth amid changing economic conditions, opening new horizons for expansion and investment in the future.