Fakeeh Medical’s profits fell 46% to $10.3 million during the third quarter

The net profit of Dr. Soliman Abdul Qader Fakeeh Hospital Company (Fakeeh Medical) declined by 45.9 percent during the third quarter of 2026, to reach 38.75 million riyals ($10.3 million), compared to 71.64 million riyals ($19.10 million) during the same period of the previous year.

On a quarterly basis, net profit decreased by 33.11 percent, compared to 57.93 million riyals ($15.45 million) in the second quarter of the current year.

The company explained, in a statement on the Saudi Stock Exchange (Tadawul) website on Thursday, that the decline in profits, despite the growth in revenues, is mainly due to the increase in depreciation and amortization expenses and financing costs associated with the acquisition of Dr. Muhammad Al-Faqih Hospital.

Depreciation and amortization expenses rose to 66 million riyals ($17.6 million), compared to 49 million riyals ($13.1 million) during the same quarter of the previous year, while net financing costs rose to 28 million riyals ($7.47 million), compared to 9 million riyals ($2.4 million).

On the other hand, the group’s revenues recorded a record level of 931.26 million riyals ($248.34 million) during the third quarter, an increase of 20 percent, compared to 778.26 million riyals ($207.54 million) during the same period last year.

The company attributed the growth in revenues to the contribution of new business, as its revenues increased to 272 million riyals ($72.5 million), compared to 87 million riyals ($23.2 million), with the start of consolidating the results of Dr. Muhammad Al-Faqih Hospital starting in July 2026, in addition to the continued growth of operational activity in Dr. Sulaiman Fakeeh Hospitals in Riyadh and Medina.

With the exception of Dr. Muhammad Al-Faqih Hospital, the group’s revenues grew by 5 percent, while the number of patients who received its services increased by 24 percent to 592,000 patients, and the number of inpatients and surgeries increased by 54 percent each.

Regarding the results of the first nine months of 2026, the group’s net profit declined by 40.22 percent to 135.09 million riyals ($36.02 million), compared to 225.97 million riyals ($60.26 million) during the similar period of the previous year.

In contrast, revenues increased by 7.12 percent to reach 2.45 billion riyals ($654.49 million), compared to 2.29 billion riyals ($610.97 million) during the corresponding period of 2025.

Shares of artificial intelligence and data center companies fell in pre-market trading on Thursday, after the Democrats' wide victory in the US midterm elections raised concerns about the possibility of obstacles to rapid expansion in this sector.

Shares of specialized cloud computing companies, which have become an indicator of investors' concern about huge spending on artificial intelligence, declined, as the shares of "CoreWave" and "Nebios" fell by 1.6 and 2.2 percent, respectively.

Investors fear that Democratic control of Congress will lead to the imposition of tighter oversight of the data center sector, which may slow down the pace of its development, at a time when popular opposition to the establishment of new facilities is already increasing.

UBS analysts estimated that about 30 percent of the expected increase in the capacity of data centers in the United States during the year 2028 may be affected by the potential cessation of construction work, in reference to the risks facing a sector whose growth depends on the rapid expansion of the construction of new facilities.

Political uncertainty is adding pressure to the broader wave of investment in artificial intelligence, with investors increasingly questioning the ability of the massive capital spending needed to build AI infrastructure to generate sufficient returns.

Shares of data center operating companies “Applied Digital” and “Cypher Digital” fell by about 1 percent each, while “Irene” shares fell by 1.5 percent.

The losses extended to utility companies and equipment suppliers that benefited from the expansion in this sector, as “GE Vernova” shares declined by 1.2 percent, and “Constellation Energy” shares declined by 0.7 percent.

The performance of the giant cloud computing companies was mixed, as “Amazon” stock rose by about 1 percent, while “Microsoft” stock stabilized. Shares of chipmakers Nvidia, Intel, and Broadcom also declined by rates ranging between 0.4 and 1.5 percent.

In a separate context, Qualcomm shares fell by 10.2 percent, after quarterly smart phone chip sales fell below Wall Street estimates.

The Bank of England raised interest rates for the first time in more than three years, warning of the possibility of the need for at least another increase if the US-Iranian conflict continues, in a move that follows major central banks that have already begun the path of tightening monetary policy to confront the repercussions of rising energy prices.

The bank said that inflation in Britain is likely to rise to about 5 percent in the middle of next year, more than double its target level, in a development that puts additional pressure on the new Prime Minister Andy Burnham, who seeks to ease the burden of living costs on British families.

The bank explained that the available data do not yet show a broad acceleration in inflation outside the sectors directly affected by the rise in energy costs, but it believed that the accumulated inflationary pressures as a result of the continued rise in energy prices over the past months call for action now, before its effects spread to a broader scope of the economy.

Bank of England Governor Andrew Bailey said that the rate hike “should not be understood as the beginning of an inevitable and long series of increases,” but added that “unless a solution is reached to the conflict in the Middle East, this increase is unlikely to be the last.”

The Monetary Policy Committee voted by a majority of 8 members to one in favor of raising the interest rate to 4 percent, from 3.75 percent. The surprise came in the identity of the opposition member; He was not a supporter of keeping interest rates unchanged, as market surveys had expected, but rather Katherine Mann called for a larger increase of half a percentage point, to 4.25 percent.

In the minutes of the November meeting, Mann said she was concerned about “non-linear inflationary risks,” referring to the possibility of pressures accelerating more than expected, especially after consumer price inflation rose to 3.5 percent during September. She believed that this level may constitute a turning point that threatens the markets’ confidence in the central bank’s ability to control inflation.

During the past months, Bailey had defended waiting before raising interest rates, noting that British interest rates were higher when the conflict broke out compared to their counterparts in other economies, and that investors had previously expected them to be reduced during the current year.

Prior to Thursday's decision, markets and investors were almost certain that the bank would raise interest rates this month, but they were also pricing in three additional increases, each by a quarter of a percentage point, during 2027, expectations that exceed what most economists expect.

Bailey attributed this difference to markets taking into account the risks of an additional sharp rise in energy prices, while economists' estimates are based on the more likely path, which indicates less need to tighten monetary policy.

Bailey said, according to the minutes of the meeting, that he sees justification for another increase in interest rates if developments do not emerge that mitigate the risks associated with inflationary pressures. Deputy Governor Claire Lombardelli also said another increase may be necessary in the near term.