Newmont (NYSE:NEM) Posts Earnings Results, Beats Expectations By $0.26 EPS

Key Points

• Newmont beat quarterly expectations: Adjusted EPS was $2.20 versus the $1.94 consensus, while revenue rose 15.2% year over year to $6.36 billion. The company generated $1.9 billion in free cash flow and returned approximately $1.9 billion to shareholders.
• Production growth is expected ahead: Newmont improved its 2026 gold all-in sustaining cost outlook to about $1,520 per ounce and expects low- to mid-single-digit production growth in 2027, supported by several mine expansions and higher grades.
• Large spending and cost risks remain: The Red Chris project may require $4.2 billion–$4.8 billion in development capital, while 2027 costs could rise due to inflation and weaker by-product credits. Analyst sentiment remains generally positive, but several firms have reduced their price targets.

Newmont (NYSE:NEM - Get Free Report) issued its quarterly earnings results on Thursday. The basic materials company reported $2.20 EPS for the quarter, topping analysts' consensus estimates of $1.94 by $0.26, FiscalAI reports. Newmont had a return on equity of 29.10% and a net margin of 33.36%. The firm had revenue of $6.36 billion for the quarter, compared to analysts' expectations of $6.27 billion. During the same period in the previous year, the firm posted $1.71 EPS. The business's revenue for the quarter was up 15.2% compared to the same quarter last year.

Here are the key takeaways from Newmont's conference call:

• Strong third-quarter financial performance: Newmont generated $1.9 billion in free cash flow, reported adjusted earnings of $2.20 per share, and returned approximately $1.9 billion to shareholders through dividends and share repurchases.
• The company improved its 2026 gold all-in sustaining cost outlook to approximately $1,520 per ounce, about 10% below its initial guidance, while remaining on track for full-year production and capital targets.
• Newmont expects production to grow by a low- to mid-single-digit percentage in 2027, supported by higher grades at Lihir and Boddington, the Tanami expansion, Cerro Negro’s Vine Zone, and additional Yanacocha ounces.
• The Red Chris block-cave project is advancing toward a potential early-2027 investment decision, with expected annual production of 275,000–325,000 ounces of gold and 65,000–85,000 tons of copper after ramp-up.
• Red Chris requires estimated development capital of $4.2 billion–$4.8 billion, while 2027 development spending is expected to rise by about $500 million; Newmont also warned that 2027 unit costs may increase due to inflation, lower silver by-product credits, and other macroeconomic pressures.

Newmont Stock Performance

Shares of NEM opened at $113.63 on Friday. The company has a quick ratio of 2.26, a current ratio of 2.55 and a debt-to-equity ratio of 0.15. The business has a 50-day simple moving average of $122.05 and a two-hundred day simple moving average of $111.00. The stock has a market cap of $119.73 billion, a price-to-earnings ratio of 12.70, a PEG ratio of 2.17 and a beta of 0.51. Newmont has a 52 week low of $76.05 and a 52 week high of $135.29.

Insiders Place Their Bets

In other Newmont news, CFO Brian Tabolt sold 11,445 shares of Newmont stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $105.09, for a total value of $1,202,755.05. Following the sale, the chief financial officer directly owned 29,324 shares in the company, valued at approximately $3,081,659.16. The trade was a 28.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Natascha Viljoen sold 3,882 shares of Newmont stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $114.81, for a total value of $445,692.42. Following the completion of the sale, the chief executive officer directly owned 127,471 shares in the company, valued at $14,634,945.51. This trade represents a 2.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 35,973 shares of company stock worth $3,927,169. Company insiders own 0.06% of the company's stock.

Analyst Upgrades and Downgrades

NEM has been the topic of a number of analyst reports. Barclays dropped their price target on shares of Newmont from $124.00 to $123.00 and set an "overweight" rating on the stock in a research note on Monday. UBS Group reduced their price objective on shares of Newmont from $140.00 to $120.00 and set a "buy" rating for the company in a research note on Tuesday, June 30th. RBC Dominion Securities set a $155.00 price objective on shares of Newmont and gave the company an "outperform" rating in a research note on Thursday. The Goldman Sachs Group decreased their target price on shares of Newmont from $122.50 to $111.40 and set a "buy" rating for the company in a report on Wednesday, July 1st. Finally, Scotiabank upped their target price on shares of Newmont from $147.00 to $149.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Newmont has an average rating of "Moderate Buy" and an average target price of $134.06.

More Newmont News

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: Newmont reported third-quarter adjusted EPS of $2.20, above the $1.96 consensus estimate, while revenue of $6.36 billion exceeded expectations of $6.26 billion. The company benefited from higher gold prices and stronger sales volumes. Newmont beats quarterly profit estimates on higher gold prices, Cadia recovery
• Positive Sentiment: Net profit rose to approximately $2.48 billion from $1.83 billion a year earlier. The results were supported by elevated gold prices, improved gold sales and recovery at the Cadia operation, reinforcing the company’s operating leverage to bullion prices. Newmont Logs Higher Profit, Revenue on Higher Gold Sales
• Positive Sentiment: Management said Newmont remains on track to achieve full-year 2026 production guidance and described the quarter as record-setting for adjusted net income. Investors also responded favorably to expectations that the company could return to growth in 2027. Newmont Reports Third Quarter 2026 Results
• Positive Sentiment: RBC Dominion Securities raised its view to “outperform” with a $155 price target, implying substantial upside from recent trading levels. Newmont also declared a quarterly dividend of approximately $0.26 per share. RBC Dominion Securities Newmont rating
• Neutral Sentiment: Newmont filed its September-quarter Form 10-Q, providing the detailed financial disclosures behind the earnings release. The dividend declaration and updated payment terms were also reported for the company’s CDI holders. Newmont Files September Quarter Form 10-Q
• Negative Sentiment: Higher costs remain a concern. Coverage noted that Newmont raised its 2026 cost outlook, which could limit the benefit of strong gold prices and reduce confidence in margins. Newmont beats third-quarter earnings expectations
• Negative Sentiment: Analyst sentiment was mixed: Freedom Broker maintained a “hold” rating but cut its target to $116 from $130, while National Bank Financial also lowered expectations. These cautious revisions likely tempered the positive reaction to the earnings beat.

About Newmont

Newmont Corporation NYSE: NEM is a global mining company primarily engaged in the exploration, development, and production of gold. The company also produces copper, silver, zinc, and lead as byproducts of its mining operations. Its activities span the full mining life cycle, including resource discovery, project development, mine operations, processing, reclamation, and closure.

Founded in 1921, Newmont has grown into one of the world's largest gold producers. The company operates and develops mines across several regions, including North America, South America, Australia, Africa, and Papua New Guinea.