---
title: "Southern Copper Q3 2026: EPS 2.15 USD and $4.70B revenue top estimates"
canonical_url: https://www.stockexpertai.com/journal/2026-10-22/southern-copper-q3-2026-eps-2-15-usd-and-4-70b-revenue-top-estimates-f8cd12c5f2d9
last_updated: 2026-10-22T11:32:04.559Z
section: "Earnings Watch"
author: "Stock Expert AI Research"
publisher: Stock Expert AI
tickers: SCCO
content_type: journal-article
---

# Southern Copper Q3 2026: EPS 2.15 USD and $4.70B revenue top estimates

_Southern Copper beat third-quarter estimates on both lines as revenue and profit rose sharply from a year earlier, though analysts remain cautious on the price._

![Data cover: Southern Copper Q3 2026: EPS 2.15 USD and $4.70B revenue top estimates](/public-objects/streetnews/2026-10-22/EARNINGS_WATCH-cover-8d73bff9.jpg)
Stock Expert AI data cover: figures from Financial Modeling Prep; background is an illustrative public-domain photo, credited on the image.

Southern Copper (NYSE: SCCO) reported third-quarter 2026 earnings on Oct. 21, 2026, with diluted EPS of 2.15 USD against an analyst estimate of 2.02 USD, and revenue of $4.70B against an estimate of $4.49B. In the same quarter a year earlier, EPS was 1.34 USD and revenue was $3.38B. The beat matters because margins widened over the past five quarters, yet Wall Street analysts still rate the stock "Hold" and put their average price target below the current share price.

## Key facts

- **Quarter ended Sept. 30, 2026 (reported Oct. 21, 2026):** diluted EPS 2.15 USD vs an estimate of 2.02 USD, a beat of +$0.13 (6.4%).
- **Revenue:** $4.70B vs an analyst estimate of $4.49B, a beat of +$204.8M (4.6%). Revenue rose 39.1% from the third quarter of 2025.
- **Net income:** $1.80B, up 62.7% from the year-ago quarter.
- **Stock reaction:** the latest quote, as of Oct. 21, 2026, was 198.07 USD, down 2.11% on the day, despite the beat.
- **Balance sheet (Sept. 30, 2026):** cash and short-term investments of $8.06B against total debt of $8.51B. The data provider (FMP) reports net debt of $3.68B; its calculation evidently uses a narrower cash measure than the combined cash and short-term investments figure shown here.

| Metric | Q3 2026 (ended Sept. 30, 2026) | Estimate or year-ago |
|---|---|---|
| Diluted EPS | 2.15 USD | Estimate 2.02 USD; year-ago 1.34 USD |
| Revenue | $4.70B | Estimate $4.49B; year-ago $3.38B |
| Operating income | $2.82B | Year-ago $1.77B |
| Net income | $1.80B | Year-ago $1.11B |
| Gross margin | 66.0% | Year-ago 59.8% |
| Operating margin | 59.9% | Year-ago 52.4% |

## What happened

Southern Copper is one of the world's large copper miners. It also sells molybdenum, zinc and silver, and its geographic revenue data shows sales in Mexico, the United States, Peru, Europe and elsewhere. For the quarter ended Sept. 30, 2026, it earned more than analysts expected and sold far more than it did a year earlier. Revenue of $4.70B compared with $3.38B in the third quarter of 2025. Operating income, which is profit from the mining business before interest and taxes, was $2.82B, against $1.77B a year earlier. Net income was $1.80B, against $1.11B.

Profit grew faster than sales, which points to improving margins. Gross margin, the share of each sales dollar left after the direct cost of producing the metal, was 66.0% in the latest quarter. A year earlier it was 59.8%. Operating margin, the share left after running costs as well, was 59.9%, against 52.4% a year earlier.

**Why did this happen?** We did not have a transcript of the earnings call or numbers from the company's release for this article, so we cannot quote management on its drivers, and we will not state them as fact. What the data shows is that sales and margins both rose together. Our own inference is that this pattern usually means the price received per unit of metal went up while costs grew more slowly. A Seeking Alpha headline from Oct. 21, 2026 refers to a continuing copper bull market, which fits that reading, but it is an outside opinion and not something the company said.

The most recent segment data available to us is for the second quarter ended June 30, 2026. Copper revenue was $3.12B, against $2.26B in the second quarter of 2025. Silver revenue was $375.8M, against $201.9M. Molybdenum revenue was $475.8M, against $354.7M. Zinc revenue was $152.2M, against $123.1M. Copper is by far the largest segment, so the company's results depend heavily on copper prices. By geography in that quarter, Mexico brought in $1.14B and the United States $609.7M, followed by Peru at $340.9M and Europe at $294.7M. Third-quarter segment figures were not available to us.

## Why it matters for investors

**The five-quarter trend.** The table below shows how the business has moved since late 2025.

| Quarter ended | Revenue | Gross margin | Operating margin | Net income |
|---|---|---|---|---|
| Sept. 30, 2025 | $3.38B | 59.8% | 52.4% | $1.11B |
| Dec. 31, 2025 | $3.87B | 62.0% | 54.5% | $1.31B |
| March 31, 2026 | $4.25B | 64.7% | 58.3% | $1.58B |
| June 30, 2026 | $4.29B | 62.0% | 61.2% | $1.67B |
| Sept. 30, 2026 | $4.70B | 66.0% | 59.9% | $1.80B |

Revenue and net income rose in every one of these quarters. Gross margin reached its highest level of the period in the latest quarter. Operating margin was slightly lower than in the June quarter, so gross margin rose while operating margin dipped. We have no cost breakdown, so we do not assert what drove the difference.

**Cash flow.** Operating cash flow, the cash the business generates from its operations, was $2.22B in the quarter ended Sept. 30, 2026. That was higher than the $1.56B of a year earlier and of every quarter in between. The data feed shows capital spending, buybacks and dividends as $0.00 for the latest quarter, and the June-quarter free cash flow of $2.43B is higher than its operating cash flow. These look like data gaps, so we would not rely on the reported free cash flow figures until the company's full filing confirms them. In the four earlier quarters, dividends paid ran between $643.3M and $826.2M per quarter, and the company did not buy back shares in any of those four quarters.

**Valuation versus peers.** On trailing 12-month earnings, SCCO trades at a price-to-earnings ratio (share price divided by profit per share) of 25.93. Its price-to-sales ratio is 9.78, and its dividend yield is 2.0%. Its net margin is 37.2%, meaning that share of revenue became profit. Peers look like this:

| Company | P/E | Net margin |
|---|---|---|
| Southern Copper (SCCO) | 25.93 | 37.2% |
| Freeport-McMoRan (FCX) | 33.93 | 11.4% |
| Antofagasta (ANFGF) | 24.48 | 17.8% |
| BHP Group (BHP) | 20.60 | 16.7% |
| First Quantum (FQVLF) | -239.61 (negative earnings) | -1.4% |

Southern Copper keeps far more of each sales dollar as profit than any peer listed, which helps explain why investors pay a higher multiple for it than for BHP or Antofagasta. Freeport-McMoRan trades at a higher multiple still.

**Analysts.** Of 29 analyst ratings, 3 are buy, 14 are hold and 12 are sell, giving a consensus of "Hold". Analyst price targets average 166.00 USD (median 170.00 USD), ranging from a low of 140.00 USD to a high of 180.00 USD. Even the highest target is below the latest quote of 198.07 USD as of Oct. 21, 2026. The 52-week trading range is 115.74 USD to 221.24 USD. Recent rating actions were all unchanged: Barclays kept Underweight on Oct. 19, UBS kept Sell on Oct. 8, and Wells Fargo kept Equal Weight on Oct. 6.

**Our MoonshotScore.** Stock Expert AI's MoonshotScore V2 for SCCO is 95.1, which we label Exceptional. Its pillars, each measured against the rest of the sector, are:

- Quality: 99, the strongest pillar, reflecting the high margins
- Momentum: 86
- Growth: 80
- Safety: 74
- Valuation: 30, the weakest pillar

In plain terms, the score says the business is excellent and the price already reflects that. Valuation is the one area where the stock ranks poorly against its sector.

## What could go wrong

- **Price risk.** The company's profit depends heavily on copper prices. The margins above are high partly because of today's prices, and if they fall, profit could fall faster than sales.
- **Valuation.** The stock fell on the day of a beat, and analysts' average target sits below the share price. The FMP discounted cash flow model, a computer estimate of what future cash flows are worth today, gives 75.53 USD per share. That is a model output and not a forecast, but it is far below the market price.
- **Analyst expectations of a slowdown.** Analyst consensus for the periods ending March 30, 2028 and June 30, 2028 is for revenue of $4.26B and $4.23B, with EPS of 1.75 USD and 1.73 USD (5 analysts each). Those figures are lower than the latest quarter's.
- **Insider selling.** Among recent insider filings in the last 90 days, there were 0 open-market purchases and 8 sales. This does not prove anything on its own, but it is not a sign of insiders buying.
- **Mixed financial-health signals.** The Altman Z-score, a bankruptcy-risk measure, is 10.68, which is strong. The Piotroski score, a nine-point measure of financial health, is a middling 5.

## What to watch next

- **Next report:** the next earnings date is Feb. 2, 2027, with an analyst revenue estimate of $4.41B.
- **Margins:** whether gross margin stays near the latest 66.0% or falls back toward the 62.0% seen in the June 2026 and December 2025 quarters.
- **Cash flow details:** the full filing should confirm capital spending, dividends and free cash flow, which the data feed shows incompletely for the latest quarter.
- **Segment mix:** third-quarter copper, silver and molybdenum revenue once the company publishes them.
- **Analyst moves:** whether any of the sell-rated firms change their view after the beat.

## Frequently asked questions

## Q: Did Southern Copper beat earnings estimates in the third quarter of 2026?

Yes. For the quarter ended Sept. 30, 2026, diluted EPS was 2.15 USD against an analyst estimate of 2.02 USD, and revenue was $4.70B against an estimate of $4.49B. Both were reported on Oct. 21, 2026.

## Q: How did Southern Copper's profit compare with a year earlier?

Net income was $1.80B in the quarter ended Sept. 30, 2026, up 62.7% from $1.11B in the quarter ended Sept. 30, 2025. Revenue rose 39.1% over the same period, from $3.38B to $4.70B.

## Q: Why did SCCO stock fall after beating estimates?

The latest quote on Oct. 21, 2026 was 198.07 USD, down 2.11%, and the company has not explained the move. Possible factors include a high valuation (our MoonshotScore valuation pillar is 30) and analyst price targets averaging 166.00 USD, below the share price. Those are context, not confirmed causes. This article is not investment advice.


*This is educational content, not investment advice. Past performance does not guarantee future results.*

## Related Tickers
- [SCCO](https://www.stockexpertai.com/stock/scco)

## Sources
- [Stock Expert AI SCCO page: quote, financials and MoonshotScore](https://www.stockexpertai.com/stock/scco)
- [seekingalpha.com: The Prospects For Southern Copper As The Copper Bull Market Continues](https://seekingalpha.com/article/4956037-prospects-for-southern-copper-as-copper-bull-market-continues)
- [zacks.com: Southern Copper (SCCO) Beats Q3 Earnings and Revenue Estimates](https://www.zacks.com/stock/news/3012015/southern-copper-scco-beats-q3-earnings-and-revenue-estimates?cid=CS-STOCKNEWSAPI-FT-fundamental_analysis|yseop_template_4-3012015)

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_AI-generated under human editorial supervision. Educational research, not financial advice._