Converge ICT Solutions reported P34.2 billion in revenue for the first nine months of 2026, up nearly 4% year on year, as its enterprise business offset slower growth in residential broadband and the company explored investments in artificial intelligence (AI), data centers and lower-cost Internet services.
The company recorded P8.1 billion in net income, equivalent to a 23.6% net income margin, while earnings before interest, taxes, depreciation and amortization reached P19.9 billion, with a 58% margin.
Enterprise revenue grew 22% to P6.4 billion, while residential revenue reached P27.9 billion. Converge reported more than 3.1 million residential subscribers as of September.
“Our Enterprise business is driving growth for Converge as we see the impact of our investments in digital infrastructure needed by both large corporates and wholesale operators,” said CEO and co-founder Dennis Anthony Uy.
The company’s large corporate segment grew 29.3%, while its small and medium enterprise business expanded 15.4%.
Chief Operating Officer Benjamin Azada said Converge had secured customers among international carriers, technology companies, hotels and local government units. Its wholesale business is also expected to benefit from the Bifrost and SEA-H2X international submarine cable systems, which are now operational.
AI and data center investments
Beyond connectivity, Converge is evaluating investments in graphics processing units, local large language models and AI computing infrastructure. Potential services include GPU-as-a-service and platforms that route AI requests to different models based on cost and technical requirements.
“We have traditional telecom before connectivity, but beyond connectivity, we need to put all these platforms on it,” Uy said during the company’s third-quarter results briefing.
The company is also considering two additional data centers, with Cavite, Laguna and Batangas among the locations under evaluation. Chief Financial Officer Robert Yu said decisions would depend on power availability, climate-related risks, fiber connectivity and customer requirements.
Converge is separately studying a broadband package priced at about P500 monthly to make Internet access more affordable. The proposal remains exploratory.
Network expansion and operational challenges
The company has completed a 1,800-kilometer domestic submarine cable network and reported almost 8.8 million fiber ports nationwide. It is directing much of its network expansion toward the Visayas and Mindanao.
Converge is also deploying predictive maintenance systems to identify weakening fiber signals before they cause service interruptions. The company reported a 33% improvement in service tickets resolved within one day and a 7% reduction in average repair time.
Uy said physical infrastructure problems, including damaged cables and poorly managed overhead lines, continued to cause disruptions.
“Technology is always ahead of the regulations,” he said, calling for stronger policies on cable management and coordination among telecommunications companies, contractors and local governments.
On employment, Uy said workers would need to adapt as businesses adopt AI, while government policies should help protect employees affected by automation.
“I don’t think this AI will replace humans, but you need to adapt it or else they will lose the job. They need to adapt early,” he said.
Converge also reported obtaining ISO/IEC 27001:2022 certification for its information security management system.
Despite inflation and weaker consumer spending, the company is maintaining its 2026 revenue outlook. Yu said management remained cautious about economic conditions but had not revised its guidance.
“We’re not adjusting yet,” he said. “So we are cautiously optimistic.”
The company has started preparing its 2027 capital expenditure budget, subject to board approval, with further details expected by mid-December.
Full disclosure: All news articles published on the TechSabado website are written by human journalists, unless otherwise specified. Final text editing is also performed by human editors, with artificial intelligence (AI) used only to assist with additional grammar and style guide corrections..
————————————————————————-
TEN YEARS OF TECHSABADO!
PLEASE LIKE our FACEBOOK PAGE and SUBSCRIBE to OUR YOUTUBE & SPOTIFY channels.
WATCH TECHSABADO ON OUR YOUTUBE CHANNEL:
WE ARE ALSO ON SPOTIFY
WATCH OUR OTHER YOUTUBE CHANNELS:
PLEASE LIKE our FACEBOOK PAGE and SUBSCRIBE to OUR YOUTUBE CHANNEL.
Leave a Reply