FPT Corporation (HOSE: FPT) | 2Q26 Update, BUY – Upside +58.6%

Earnings Growth Remains Resilient

FPT 2Q26 Performance

FPT reported another solid quarter, with 2Q26 revenue of VND 13,789bn (+16.4% YoY, +10.5% QoQ) and NPAT-MI of VND 2,568bn (+13.7% YoY, +3.2% QoQ), driven primarily by 18.7% YoY revenue growth in the Technology segment. For 1H26, revenue and NPAT-MI reached VND 26,268bn (+12.6% YoY) and VND 5,055bn (+14.1% YoY), fulfilling 46.6% and 48.0% of our FY26E forecasts, respectively.

Backlog remained strong, with new contract value reaching VND 12,505bn (+45.5% YoY) in 2Q26 and VND 26,338bn (+32.3% YoY) in 1H26. The number of US$10mn+ projects increased from 11 to 14, providing strong earnings visibility for 2H26.

AI commercialization continued to gain traction. Digital transformation (DX) revenue increased 28.9% YoY, while AI & Data Analytics outpaced the broader segment with 54.0% YoY growth in 1H26. Notably, both AI Factory facilities exceeded 90% utilization and became profitable during the quarter, supporting our view that AI is transitioning from an investment phase to a scalable earnings driver.

Earnings Forecast

We maintain our FY26E forecasts for revenue and NPAT-MI at VND 56,323bn (+11.3% YoY) and VND 10,538bn (+12.4% YoY), respectively.

For FY27E/FY28E, we forecast revenue of VND 62,203bn (+10.4% YoY) and VND 67,944bn (+9.2% YoY), while NPAT-MI is projected at VND 11,871bn (+12.7% YoY) and VND 13,062bn (+10.0% YoY), respectively.

Target Price and Rating

We maintain our TP at VND 106,400/share. At the current share price of VND 67,100 (31 July 2026), this represents 58.6% potential upside to our TP. We therefore maintained our BUY rating.

FPT trades at 11.4x TTM P/E and 10.5x FY26E P/E, representing a meaningful discount to both its 5Y average (15.1x) and regional IT peers (18.9x). We believe the current valuation fails to fully reflect FPT's ability to monetize higher-value DX services, AI commercialization, and continued expansion of its overseas IT business.  In addition, FPT's ample FOL room makes it eligible for inclusion in the FTSE Global Mid Cap Index. We expect this to improve passive and active foreign investor participation, providing a potential catalyst for renewed foreign inflows following several months of net selling.