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Telecom Argentina Posts Strong 1Q26 Profit on FX Gains and Higher Capex

Story Highlights
  • Telecom Argentina’s 1Q26 revenues and service sales rose in real terms, driven by full TMA consolidation, stronger ARPU and growth in fixed broadband and pay TV, despite a decline in legacy mobile lines.
  • The company’s profitability and financial profile improved, as net income surged on foreign-exchange gains, EBITDA margins expanded, capex intensity increased, and real net financial debt fell versus year-end 2025.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Telecom Argentina Posts Strong 1Q26 Profit on FX Gains and Higher Capex

Meet Samuel – Your Personal Investing Prophet

Telecom Argentina ( (TEO) ) just unveiled an announcement.

Telecom Argentina reported first-quarter 2026 results on May 11, 2026, with consolidated revenues of P$2.36 trillion and service revenues of P$2.28 trillion, reflecting 33.6% year-on-year growth in constant currency driven largely by the full-quarter consolidation of TMA. While mobile accesses in Telecom’s legacy Argentine base fell 8.9% due mainly to prepaid line disconnections, fixed broadband and pay TV subscriptions rose, and TMA added modest growth in mobile and broadband customers.

Profitability and balance sheet metrics improved, with the consolidated Operating Income before Depreciation, Amortization and Impairment margin rising to 34.8% and net income jumping to P$642.98 billion from P$123.59 billion in 1Q25, helped by foreign-exchange gains amid a real appreciation of the peso. Telecom also stepped up capital expenditures by 85.1% to P$433.77 billion, lifting capex to 18.4% of revenues, while cutting consolidated net financial debt 15.6% in real terms versus December 31, 2025, supporting its financial position and longer-term network investment strategy in a volatile macroeconomic context.

The most recent analyst rating on (TEO) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Telecom Argentina stock, see the TEO Stock Forecast page.

Spark’s Take on TEO Stock

According to Spark, TipRanks’ AI Analyst, TEO is a Neutral.

The score is driven primarily by mixed fundamentals: strong recent revenue growth and resilient cash generation are offset by a return to net losses and uneven earnings quality. Technically, the trend is positive with moderate momentum, while valuation is supported by the high dividend yield but constrained by loss-driven negative P/E.

To see Spark’s full report on TEO stock, click here.

More about Telecom Argentina

Telecom Argentina S.A. is a leading telecommunications operator in Argentina, also present in Paraguay, offering mobile, fixed broadband, pay TV and related ICT services to consumer and corporate clients. The company, listed on the NYSE and BYMA, operates in a high-inflation environment and has expanded its scale through the consolidation of TMA Networks’ ICT services in Argentina.

Average Trading Volume: 270,104

Technical Sentiment Signal: Strong Buy

Current Market Cap: $5.39B

Learn more about TEO stock on TipRanks’ Stock Analysis page.

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