10-Q · April 30, 2026
Southern Copper Corporation reported a strong Q1 2026 with revenues of $4.25 billion, representing a 36.2% increase year-over-year and a substantial beat against prior earnings estimates. The net income increased by…
Earnings analysis · 10-Q
SCCO earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Southern Copper delivered a strong 3Q26, with record revenue of $4.697 billion and diluted EPS of $2.15, exceeding consensus by 5.4% and 6.97%, respectively. Results benefited from higher metal prices and continued…
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Southern Copper delivered a strong 3Q26, with record revenue of $4.697 billion and diluted EPS of $2.15, exceeding consensus by 5.4% and 6.97%, respectively. Results benefited from higher metal prices and continued margin expansion, although copper and by-product production declined. The 10-Q adds geopolitical and AI-related cybersecurity risks, while providing no numeric revenue or EPS guidance.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.15
What stood out
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Record revenue with a 5.4% beat
Third-quarter revenue reached a record $4.697 billion, up approximately 9.5% from $4.29 billion in 2Q26 and 39.0% from $3.38 billion in 3Q25. Revenue exceeded the $4.456 billion consensus estimate by 5.4%.
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EPS rose 59% year over year
Diluted EPS was $2.15, up 7.0% from $2.01 in 2Q26 and 59.3% from $1.35 in 3Q25. EPS exceeded the $2.01 consensus estimate by 6.97%.
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Margins expanded materially
The prior-period trend remained strongly positive: gross margin increased from 57.7% in 1Q25 to 67.6% in 2Q26, while operating margin rose from 49.2% to 61.2% over the same periods.
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Metal prices outweighed lower volumes
Management attributed the record quarter to higher metal prices; the prior earnings disclosure also reported growth in EBITDA, profit and operating cash flow despite lower copper and by-product production.
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Foreign-exchange upside sensitivity disclosed
The company estimates that a 10% appreciation of the U.S. dollar would increase earnings by $27.3 million for its Peruvian sol monetary position and $37.0 million for its Mexican peso position.
What to watch
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Geopolitical and supply-chain exposure
The 10-Q supplements the February 27, 2026 Form 10-K with a new geopolitical-risk discussion covering military conflicts and supply-chain disruption. The filing warns that higher fuel, energy and raw-material costs could reduce margins, while the potential impact is not quantified.
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Cybersecurity risk broadened by AI
The 10-Q expands the information-technology risk discussion to include AI-enabled attacks and compromised or autonomous AI systems. The filing identifies potential effects on operations, cash flows and financial condition but provides no quantified loss estimate.
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Foreign-exchange earnings sensitivity
Currency volatility remains material: a 10% U.S.-dollar appreciation would increase estimated earnings by $27.3 million against the Peruvian sol position and $37.0 million against the Mexican peso position, while a 10% dollar depreciation would reduce earnings by $33.4 million and $45.3 million, respectively.
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Lower production volumes
Copper and by-product production declined even as higher prices drove results; this creates volume risk if prices weaken. Third-quarter revenue was $4.697 billion, but the filing excerpt does not quantify the production declines.
Management's outlook
The 10-Q provides no numeric revenue or EPS outlook and does not update or reaffirm prior guidance; quantitative outlook was deferred to the earnings release or call.
Earlier filings 4
10-K · February 27, 2026
Southern Copper presents a large, vertically integrated copper platform concentrated in Peru and Mexico (164,805 ha in Peru; 505,788 ha in Mexico) and reports a strong finish to 2025 with Q4 revenue of $3.87 billion,…
10-Q · October 31, 2025
Southern Copper reported Q3 net sales of $3,377.3 million and diluted EPS of $1.35, outperforming the comparable prior-year quarter and driving operating income of $1,768.8 million (52.4% operating margin). The company…
10-K · March 3, 2025
Southern Copper positions itself as a very large, vertically integrated copper producer with extensive Peruvian and Mexican assets (154,535 ha in Peru; 502,688 ha in Mexico) and says it believes it has the largest…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.