América Móvil Reports Strong Q1 2026 Results with 25% Net Income Growth, Positive Free Cash Flow, and New MXN 10B Share Buyback Program
Summary
América Móvil announced strong Q1 2026 financial and operating results, including a 25.1% increase in net income, positive free cash flow, and a proposed MXN 10 billion share buyback program.
Key Events
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Strong Financial Performance
Net income surged by 25.1% year-over-year to 23.4 billion Mexican pesos, with operating profit (EBIT) up 12.7% and EBITDA increasing 3.8% (8.0% at constant exchange rates). Consolidated revenue grew 2.1% (6.1% at constant exchange rates).
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Significant EPS Growth
Earnings per ADR (US$) increased to $0.44 in Q1 2026 from $0.30 in Q1 2025, reflecting the strong net income performance.
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Positive Free Cash Flow Turnaround
The company generated 3.267 billion Mexican pesos in free cash flow, a significant improvement from a negative 410 million pesos in the prior-year quarter.
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Substantial Share Buyback Program Proposed
The Board of Directors will propose allocating an additional 10 billion Mexican pesos to the share-buyback fund for the April 2026 - April 2027 period, alongside an ordinary dividend of MXP$0.54 per share.
Analysis
América Móvil delivered a robust first quarter, showcasing significant financial and operational improvements. The substantial 25.1% increase in net income and a turnaround to positive free cash flow from a prior-year deficit highlight strong execution and improved profitability. The proposed MXN 10 billion share buyback program signals management's confidence and commitment to shareholder returns, representing a material capital allocation decision. Furthermore, solid subscriber growth, particularly in postpaid and broadband, combined with strategic acquisitions like Desktop in Brazil, position the company for continued expansion in key markets. Investors should view these results as a strong indicator of operational efficiency and financial health.
At the time of this filing, AMX was trading at $26.04 on NYSE in the Technology sector, with a market capitalization of approximately $79B. The 52-week trading range was $16.29 to $27.70. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.