Singtel annual profit climbs 12% despite missing estimates

Singtel, a Singapore-based telecom operator, reported higher annual profit on May 21.

Underlying net profit for the year ended March 2026 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), below the Visible Alpha estimate of S$2.82 billion (US$2.2 billion).

The company, however, warned that the Iran war could raise inflation and currency volatility across its Asian markets, prompting a cautious near-term outlook.

Singtel said most of its key markets are net energy importers, exposing them to higher costs, weaker spending, and slower growth.

It expects fiscal 2027 EBIT growth in the low- to mid-single digits.

Contributions from associates Bharti Airtel and AIS rose 11% to S$1.96 billion (US$1.53 billion).

Singtel plans about S$3 billion (US$2.34 billion) in 2027 capex plus S$1.2 billion (US$937 million) for data centers and AI.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Singtel’s AI push grows as pressure stays on its mobile business

Singtel plans to spend S$1.2 billion (US$937 million) on data centers and AI while pressure continues in parts of its telecom business 1.
Singtel will also shut five older facilities in Singapore as it shifts to greener AI-ready sites under Nxera, its data center business 2.
Singtel will serve as Nvidia’s cloud partner in South-east Asia, said Bill Chang, CEO of Nxera 2.
The two companies are setting up a research center to design future facilities with power densities of 600 kW to 1 MW. That is up to 100 times the average data center. The aim is to serve organizations with data-sovereignty needs, which means sensitive data is stored and processed within their own country 1.

Telecom operators push for a bigger role in AI infrastructure

The AI boom has made Asia-Pacific the busiest market for data center deals. Some valuations top 20 times forward core earnings, above about 16 times for private infrastructure deals worldwide 3.
This gives telecom operators a way to use their networks and facilities to support national AI plans, as governments in the region take a more active role in shaping AI infrastructure 4.
Partnerships with Nvidia also help telecom groups meet demand for data sovereignty, as businesses and governments want sensitive data processed locally 1.
Growth now depends on physical resources as much as funding, because access to power is constraining data center expansion across the region 4.