Riyadh – Mubasher: Arabian Internet and Communications Services Company (solutions) delivered solid financial results in the second quarter (Q2) of 2026.
The company witnessed stronger-than-expected gross and operating profitability offset by weaker performance in below-the-operating-line items, according to a report by Aljazira Capital.
Aljazira Capital said the company's core operations remained resilient, supported by solid execution despite the impact of non-operating items on overall earnings.
It expects solutions' gross margins to normalize over the coming quarters as milestone-related project costs are recognized.
However, the firm maintained a positive medium-term outlook, citing the company's strong execution capabilities and a healthy pipeline of projects expected to support future growth.
The report also noted that the company’s share price has declined by around 17% over the past six months, creating what it described as an attractive entry opportunity for investors. The stock is currently trading at an estimated FY2027 price-to-earnings (P/E) ratio of 12.5x.
Based on its valuation and growth prospects, Aljazira Capital reiterated its "Overweight" recommendation on solutions and maintained its target price at SAR 254 per share.
