América Móvil, one of Latin America's largest telecoms companies, has posted a stronger-than-expected revenue growth for the second quarter of 2026. The company's Q2 revenue rose 7.4% year-on-year to £13.4 billion, surpassing analyst forecasts.
However, América Móvil's earnings per share (EPS) fell short of expectations at £0.22, down 12.5% from the same period last year. The EPS miss was attributed to higher operating costs and increased competition in the sector.
Despite the EPS miss, América Móvil's revenue growth was driven by strong performance in Latin America, where the company has expanded its operations in recent years. The region accounted for 55% of América Móvil's Q2 revenue, up from 45% in the same period last year.
The earnings beat has raised hopes for a recovery in the sector, with analysts expecting América Móvil's revenue growth to accelerate in the second half of 2026. The company's shares rose 5% in early trading, outperforming the FTSE 100 index.
For UK investors, América Móvil's Q2 results are a significant development, as the company's shares are widely held by UK pension funds and investment trusts. The earnings beat has raised hopes for a rebound in the telecoms sector, which has been struggling in recent years. However, investors are advised to exercise caution and seek professional advice before making any investment decisions.
The Bank of England has kept interest rates on hold for now, but the central bank's Monetary Policy Committee (MPC) is expected to closely monitor the impact of América Móvil's earnings beat on the UK economy. The MPC has previously warned that a recovery in the telecoms sector could lead to higher inflation and economic growth.
The FTSE 100 index rose 0.5% in early trading, with telecoms companies such as BT Group and Vodafone Group outperforming the market. América Móvil's shares are listed on the London Stock Exchange, but the company's operations are primarily based in Latin America.