América Móvil Stock Jumps 6% After Third-Quarter Profit Rise
América Móvil shares surged roughly 6% on Wednesday after the Mexican telecommunications operator reported a 7% year-over-year increase in third-quarter net income to 24.28 billion pesos, or $1.32 billion, according to tikr.com. The quarterly performance exceeded Zacks consensus estimates while falling short of LSEG projections.
Operating revenue climbed 7.6% to 250.63 billion pesos, driven by a 7.2% rise in service revenue. Operating income reached 57 billion pesos, marking a 13.9% increase. Meanwhile, EBITDA grew 8.9% to 102.16 billion pesos, producing an EBITDA margin of 40.8%. Adjusted earnings hit $0.47 per ADR, beating the Zacks consensus estimate of $0.46 and rising from $0.40 a year earlier.
Currency Losses and Financing Costs Offset Operational Gains
Despite strong operational figures, currency fluctuations weighed on the company's bottom line. Foreign exchange losses pushed total financing costs up by 75% to 22.57 billion pesos. The Mexican peso traded near an 11-month low during the same week.
Customer mix shifted toward higher-margin lines during the quarter. América Móvil added 3.1 million postpaid lines, led by Brazil, while shedding 5 million prepaid lines, primarily in Mexico and Colombia. Government-mandated user registration requirements weighed on prepaid subscriptions in Mexico.
Fiber Acquisition in São Paulo and Fixed-Line Growth
Fixed-line service revenue growth accelerated to 3.7%, up from 2.7% in the previous quarter. Brazil anchored much of this expansion. On October 2, 2025, América Móvil finalized the acquisition of a 72.8% stake in Desktop, a fiber-optic provider operating in the state of São Paulo.
Estimates regarding whether the quarter constituted an earnings beat varied by consensus tracker. Analysts surveyed by LSEG expected roughly $1.51 billion in profit, placing the actual result below those specific expectations.
Forward Valuations and Multi-Year Analyst Projections
Analysts tracked by tikr.com project that normalized earnings per share will climb from $1.59 in 2025 to $2.39 by 2028, representing an annual growth rate of approximately 13%. Revenue and EBITDA expanded faster than net income during the quarter, leaving analyst estimates stable.
América Móvil traded at 12.8 times forward earnings at Tuesday’s close, sitting slightly above its five-year average of 12.1 times and well below its December 2021 peak of 15.4 times. By Friday’s close, the forward P/E multiple retreated to 11.7 times as the stock fell 1.6% to finish near $25. Analysts maintain an average price target of approximately $29.
Domestic Competition and Upcoming Financial Reports
Domestic competitive pressures are intensifying in Mexico. Grupo Televisa announced plans to acquire AT&T’s Mexican subsidiary—the nation’s second-largest mobile operator—for $2 billion. Scotiabank characterized the transaction price as unfavorable for América Móvil because the newly combined competitor will secure additional capital to invest in its network. That transaction is slated for completion in early 2027.
América Móvil is scheduled to release its fourth-quarter financial report around February 9.
Frequently Asked Questions
How much did América Móvil pay for its stake in Desktop?
América Móvil finalized the acquisition of a 72.8% stake in the São Paulo-based fiber-optic provider on October 2, 2025.
What were the total financing costs for the third quarter?
Total financing costs rose to 22.57 billion pesos, driven higher by a 75% increase in foreign exchange losses.
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