Freeport-McMoRan shares slip despite second quarter earnings beat as copper outlook softens Proactive uses images sourced from Shutterstock

Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB) reported stronger-than-expected second quarter 2026 results on Thursday, with earnings and revenue topping Wall Street expectations, although shares edged about 2% lower as investors weighed a slightly reduced near-term copper sales outlook.

The company reported adjusted earnings per share of $0.74, ahead of analyst estimates of $0.62, while revenue came in at $7.03 billion, exceeding consensus expectations of $6.71 billion.

The company produced 786 million pounds of copper, 192,000 ounces of gold and 23 million pounds of molybdenum during the quarter. Consolidated sales totaled 710 million pounds of copper, 123,000 ounces of gold and 25 million pounds of molybdenum.

Freeport highlighted strong operational performance during the quarter, noting that consolidated copper sales exceeded its April 2026 estimates and average unit net cash costs were better than expected.

Average realized prices during the period were $6.17 per pound for copper, $4,520 per ounce for gold and $28.75 per pound for molybdenum.

Freeport maintained its full-year 2026 copper sales forecast at approximately 3.1 billion pounds, but lowered its third-quarter copper sales outlook to 750 million pounds.

The company expects third-quarter sales of 160,000 ounces of gold and 22 million pounds of molybdenum.

“We achieved strong results in the second quarter, supported by solid execution of our operating plans and favorable pricing for our products,” Freeport CEO Kathleen Quirk said.  

“We made steady progress with our Grasberg ramp-up and our Americas operations delivered excellent performance, which resulted in year-over-year improvements to bottom-line results.”

Jefferies reiterated its ‘Buy’ rating on Freeport-McMoRan following the results, noting that second-quarter EBITDA came in 12% above consensus estimates, supported by higher copper sales and lower-than-expected costs.

The analyst highlighted that copper sales of 710 million pounds exceeded prior guidance of 690 million pounds, while net cash costs of $1.97 per pound were below the previous outlook of $2.24 per pound.

Jefferies noted that full-year copper sales guidance remained unchanged, while cost guidance was reduced by $0.05 per pound following the quarterly performance.

Jefferies wrote that the Grasberg Block Cave ramp-up appears to be progressing in line with expectations, although the timing of planned sales has shifted from the third quarter into the fourth quarter.

The analyst noted that the company’s 2028 production outlook was slightly reduced, but maintained that the key focus remains on delivering the Grasberg recovery plan over the next two years.

“The key for Freeport is to deliver the recovery at the GBC in line with guidance over the next two years,” Jefferies wrote, adding that a successful ramp-up could provide a “double benefit” through higher earnings and a higher valuation multiple for the shares.

The analyst concluded that Freeport remains a higher-risk, higher-reward investment opportunity.