AI Takeaway
FCX delivered a strong Q1 FY2026 with revenue rising 8.8% YoY to $6.23B and operating income surging 64% to $2.14B, driven by significantly improved margins and robust operating cash flow of $1.50B.
Revenue
$6.23B
++8.83% YoY
EPS (Basic)
$0.61
++154.17% YoY
Operating Income
$2.14B
++64.01% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
FCX's Q1 FY2026 revenue increased 8.8% YoY to $6.23B from $5.73B, suggesting improved copper and gold price realizations contributed meaningfully to top-line growth despite relatively modest volume changes.
Source: Source: 10-Q Financial Data (Income Statement)
Operating margin expanded approximately 11.5 percentage points YoY to 34.3% from 22.7%, reflecting operating leverage as revenue growth outpaced cost increases, with operating income jumping 64% to $2.14B.
Source: Source: 10-Q Financial Data (Income Statement, Key Ratios)
Cost of revenue rose 8.5% YoY to $4.58B, slightly below the 8.8% revenue growth rate, indicating modest improvement in cost efficiency and contributing to gross profit expansion.
Source: Source: 10-Q Financial Data (Income Statement)
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Upgrade to unlockFCX's revenues and profitability are highly sensitive to copper and gold price fluctuations. The dramatic YoY improvement in operating income (64%) and EPS (154%) suggests results are heavily leveraged to commodity prices, meaning a reversal in metal prices could sharply compress margins and earnings.
Source: Source: 10-Q Financial Data (Income Statement, Key Ratios)
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Upgrade to unlockReported EPS of $0.57 versus the $0.46 analyst consensus — a +23.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.23B | $5.73B | +8.83% |
Cost of Revenue | $4.58B | $4.22B | +8.46% |
Operating Income | $2.14B | $1.3B | +64.01% |
EPS (Basic) | $0.61 | $0.24 | +154.17% |
EPS (Diluted) | $0.61 | $0.24 | +154.17% |
SG&A Expense | $162M | $154M | +5.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $58.84B | $56.02B | +5.03% |
Current Assets | $14.09B | $13.8B | +2.10% |
Total Liabilities | $27.33B | $26.81B | +1.94% |
Current Liabilities | $5.91B | $5.94B | -0.61% |
Stockholders' Equity | $19.5B | $17.69B | +10.27% |
Cash & Equivalents | $3.74B | $4.38B | -14.78% |
Long-Term Debt | $9.41B | $9.4B | +0.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.5B | $1.06B | +41.30% |
Investing Cash Flow | $-985M | $-1.18B | +16.24% |
Financing Cash Flow | $-534M | $155M | -444.52% |
Share Buybacks | $93M | $55M | +69.09% |
D&A | $514M | $466M | +10.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 34.3% | 22.7% | +11.53% |
Current Ratio | $2.386 | — | — |
Debt to Equity | $1.401 | — | — |
FCX delivered a strong Q1 FY2026, with revenue of $6.23B (up 8.8% YoY) and operating income of $2.14B (up 64% YoY). EPS more than doubled to $0.61 from $0.24 in the prior-year period, reflecting significant margin expansion and strong commodity price realizations.
FCX's operating income surged 64% YoY to $2.14B primarily because revenue grew 8.8% while cost of revenue rose only 8.5%, creating operating leverage that expanded the operating margin to 34.3% from 22.7%. This suggests higher copper and gold price realizations were the key driver of profitability improvement.
FCX's financial health appears solid, with a current ratio of 2.39 indicating strong short-term liquidity and operating cash flow of $1.50B supporting ongoing capital needs. However, a debt-to-equity ratio of 1.40 and long-term debt of $9.41B represent meaningful leverage that investors should monitor if commodity prices weaken.
FCX generated approximately $510M in free cash flow in Q1 FY2026, calculated as operating cash flow of $1.50B minus investing outflows of approximately $985M. This represents a significant improvement from the prior year when operating cash flow was $1.06B and investing outflows were $1.18B.
Yes, FCX repurchased approximately $93M in shares during Q1 FY2026, up 69.1% from $55M in the prior-year period. This modest buyback activity, combined with the strong earnings improvement, contributed to the 154% YoY increase in EPS to $0.61.