Preliminary figures from the Statistical Office of the Republic of Serbia show that operating income in the country’s non-financial business economy increased by 6.4% year on year in the first quarter of 2026. In the same period, the information and communication sector recorded operating income growth of 11.4% compared with the first quarter of 2025. The data also show that operating costs across the wider non-financial business economy rose by 5.4% year on year.
Within that broader environment, costs in information and communication increased faster, up 12.5% year on year. Operating income growth in ICT therefore outpaced cost growth, but the gap indicates a more demanding margin environment. The sector’s activity is supported by software, digital services, telecommunications, wholesale ICT equipment, data processing and related activities.
Revenue growth outpaces cost increases
The first-quarter results place ICT within a wider corporate slowdown when compared with the fourth quarter of 2025. For total ICT, operating income fell to an index of 79.6, while operating costs rose to an index of 84.8. This pattern is consistent with seasonal or cyclical declines after stronger year-end technology spending, contract closing, equipment procurement and corporate budget execution.
Across the non-financial business economy, operating income also came in below the fourth quarter of 2025, at an index of 86.7, while costs were at 85.4. In annual terms, however, ICT’s revenue growth remained stronger than the economy-wide average despite the quarterly dip. The Statistical Office data therefore show both an annual outperformance and a quarter-on-quarter slowdown.
ICT structure: services dominate
Services accounted for 93.8% of ICT operating income and 93.2% of operating costs in the first quarter. Manufacturing activities within ICT represented a smaller share, at 6.2% of operating income and 6.8% of operating costs. This composition points to a service-led ICT economy focused on software, telecoms, programming, consulting, equipment distribution, hosting and digital platforms.
The largest structural contribution came from computer programming, consultancy and related activities. The segment generated 47.1% of sector operating income and accounted for 50.4% of sector operating costs in the first quarter. It recorded annual income growth of 14.7%, while costs increased by 9.8%.
Telecommunications and equipment trade diverge
Telecommunications was the second-largest component by operating income share at 28.6%, while its share of operating costs was 22.5%. Despite its size, its annual income index stood at 98.9, indicating a slight year-on-year decline in operating income as costs rose by 12.2%. The divergence reflects a more pressured telecom operating environment tied to capital-intensive networks, maintenance, spectrum-related obligations, energy costs and competitive pricing.
Wholesale of information and communication equipment contributed 15.0% to ICT operating income and 17.2% to operating costs in the first quarter. Income rose by 35.2% year on year while costs increased by 28.6%. The segment’s higher cost share aligns with import-heavy and inventory-sensitive equipment trade characteristics where revenue can grow quickly but margins are typically thinner than in software and consulting.
Narrower segments: publishing, hosting and repairs
Software publishing remained a small segment at 0.3% of both operating income and operating costs in the first quarter. Its operating income increased by 21.6%, while costs rose by 13.7%. Although its statistical weight is limited, the growth profile includes higher intellectual-property value and scalability compared with many service-based activities.
Data processing, hosting, related activities and web portals accounted for 2.4% of operating income and 2.5% of operating costs in the first quarter . Income grew by 5.0%, while costs fell by 8.3%. The figures indicate improved operating efficiency alongside continued demand for hosting, cloud-linked services, platform infrastructure and data-management capacity.
Repair of computers and communication equipment represented a marginal but stable activity with shares of 0.4% for both operating income and costs . Operating income rose by 14.9%, while costs increased by 14.1%. The annual movement keeps the relationship between income and cost broadly balanced.
Ict manufacturing shows mixed performance
The manufacturing side of ICT showed uneven results across sub-segments in annual terms . ICT manufacturing overall recorded income growth of 6.4%, while costs rose by 8.0%. Manufacture of computers and peripheral equipment was the strongest manufacturing sub-segment with operating income up by 13.1%, alongside cost growth of 28.0%.
Earnings were more modest for electronic components and boards, where operating income increased by only 1.4%, while costs fell by -9. By contrast, manufacture of communication equipment saw operating income decline by -15. Manufacture of consumer electronics recorded sharper declines with income down by -28% and costs down by -47%.
Main takeaway from first-quarter comparisons
The first-quarter dataset shows that ICT continues to deliver stronger revenue growth than Serbia’s broader non-financial business economy while simultaneously facing faster cost increases . Operating costs rose more quickly in information and communication than in the wider corporate sector during the year-on-year comparison.
The largest segment for commercial scale remains computer programming, consultancy and related activities where annual revenue growth exceeded cost growth at 14. Telecommunications and wholesale equipment-related activities show different dynamics as telecom revenue declined slightly on an index basis while equipment trade delivered high double-digit increases in both income and cost shares.
