Globe Telecom: revenue grows for a fifth straight quarter, but profit barely follows

On 25 November Globe Telecom reported results for the third quarter of 2026. Revenue came in at PHP 46,683.3 mn, up 5.1% year on year, operating profit at PHP 3,377.7 mn, and net profit at PHP 5,438.3 mn, 3.5% above the year-ago level. Growth slowed from the second quarter, when revenue was adding 7.9%, and the quarterly net margin was 11.6% against 11.8% a year earlier. Our conclusion: the share is rather attractive – the portal's model puts upside to fair value at +18%, and a 6.8% dividend yield supports that view. Our view: the share is rather attractive at the current price; upside on the portal model +18%.

Our view: is there upside

Our view in numbers

Key takeaways

— Revenue added 5.1% year on year, but growth slowed from 7.9% in the second quarter

— Net profit rose 3.5%, while the quarterly margin slipped to 11.6% from 11.8%

— Operating profit of PHP 3,377.7 mn is only a small part of net profit of PHP 5,438.3 mn

— Leverage at 2.88x LTM EBITDA is moderate for a telecom with a steady cash flow

— A 6.8% dividend yield is the main argument for the share at a P/E of 9.6

— On the portal's model the share trades at an 18% discount to fair value

Key figures, PHP bn

Revenue added 5.1% year on year, but growth slowed from 7.9% in the second quarter

In the third quarter of 2026 Globe Telecom's revenue came to PHP 46,683.3 mn, 5.1% more than a year earlier. This is the fifth consecutive quarter of year-on-year growth after the decline in late 2025, when revenue was shrinking by 1.6–4.0%.

Relative to the second quarter, however, when growth reached 7.9%, the pace slowed. A deceleration of 2.8 percentage points is noticeable, although the absolute revenue level remains high: the quarter was the best by revenue in the past two years.

The report does not disclose the reason for the slowdown. What is visible is that growth rests on steady demand rather than one-offs – revenue has grown for five quarters in a row without sharp jumps.

Net profit rose 3.5%, while the quarterly margin slipped to 11.6% from 11.8%

Net profit for the third quarter of 2026 was PHP 5,438.3 mn, 3.5% more than a year earlier. Profit growth lags revenue growth, and this shows up in the margin: 11.6% against 11.8% in the third quarter of 2025.

A margin decline of 0.2 percentage points is small, but it shows that costs are rising slightly faster than revenue. Operating profit of PHP 3,377.7 mn covers only part of net profit, meaning a significant share of the result is formed below the operating line.

Over the trailing twelve months net profit was PHP 22,048.1 mn on revenue of PHP 183,500.0 mn. These figures describe an annual period, not a single quarter, and cannot be directly compared with quarterly growth rates.

Operating profit of PHP 3,377.7 mn is only a small part of net profit of PHP 5,438.3 mn

The gap between operating and net profit in the third quarter of 2026 is the key feature of the report. Operating profit was PHP 3,377.7 mn, while net profit was PHP 5,438.3 mn. This means that about PHP 2,060 mn, or roughly 38% of net profit, was formed below the operating line.

Such a structure is typical for companies with substantial financial income or one-off items, but the provided facts do not disclose the reasons. What matters is that operating profit is positive and growing: in the third quarter of 2025 it was PHP 9,235.5 mn, but that quarter included different one-off factors.

To assess the sustainability of the result, one should look at operating profit rather than net profit: it reflects the core business. Net profit of PHP 5,438.3 mn looks impressive, but its quality depends on how repeatable the items below the operating line are.

Leverage at 2.88x LTM EBITDA is moderate for a telecom with a steady cash flow

Globe Telecom's net debt at the latest reporting date is PHP 231,313.0 mn, equal to 2.88x EBITDA over the trailing twelve months. This is a moderate level for a telecom company: LTM EBITDA of PHP 80,246.0 mn covers the debt almost three times over.

The direction of change in debt is not disclosed in the facts, so we limit ourselves to stating the level. A ratio of 2.88 is in a comfortable range and does not create a risk for dividend payments.

Interest expenses and the debt structure are not detailed in the provided data. For a shareholder, what matters is that debt servicing does not eat into profit: quarterly net profit of PHP 5,438.3 mn is positive and growing.

A 6.8% dividend yield is the main argument for the share at a P/E of 9.6

Globe Telecom's dividend yield over the trailing twelve months is 6.8%. At a share price corresponding to a LTM P/E of 9.56, this creates an attractive combination: the investor receives almost 7% of income from dividends alone, before any capital appreciation.

Payments are covered by profit: net profit over the trailing twelve months was PHP 22,048.1 mn, and leverage at 2.88x EBITDA does not threaten dividends. However, the specific amount and schedule of payments are not disclosed in the facts, so we cannot assess the payout ratio.

A yield of 6.8% is noticeably higher than one would expect from risk-free instruments, which compensates for emerging-market risk. For a conservative investor this is the main argument for the share, although it does not eliminate currency and country risk.

On the portal's model the share trades at an 18% discount to fair value

Our fundamental valuation model, based on EBITDA growth and a target multiple, shows upside to fair value of +18%. This is the portal's own estimate, not a market consensus or a target price.

The current valuation is 5.51x LTM EV/EBITDA and 9.56x LTM P/E. For a telecom company with growing revenue and moderate debt, such multiples look low, which is reflected in the model's upside.

The share is held in the live model strategy PH FVC (quality) on the portal. This is a fact, not an argument for the verdict: inclusion in the strategy is determined by its own screening criteria.

Valuation on the latest reported figures

Bottom line

The strong side of the report remains revenue: a fifth consecutive quarter of growth, and in absolute terms the quarter was the best in two years. However, profit is growing slower than revenue, and the quarterly margin slipped to 11.6% from 11.8%. Net profit of PHP 5,438.3 mn is more than half formed below the operating line, and the sustainability of those items is the main question for a holder. Leverage at 2.88x LTM EBITDA creates no strain, and a 6.8% dividend yield remains the main argument. Our conclusion: the share is rather attractive – the portal's model puts upside to fair value at +18%. Our view: the share is rather attractive at the current price; upside on the portal model +18%.