América Móvil Profit Rises 25.1% in 1Q26 on Lower Financing Costs

América Móvil reported a 25.1% increase in net profit in 1Q26 to MX$23.401 billion, supported by lower financing costs and the appreciation of the Mexican peso against major international currencies. Domestic revenue rose 5.1%, while its mobile unit Telcel faced mandatory regulatory disconnections of 482,000 prepaid users, underscoring the impact of telecom regulator oversight on operational performance.

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América Móvil reported a 25.1% year-over-year increase in net profit for 1Q26, totaling MX$23.401 billion (US$1.35 billion). The company attributed the rise in profitability to significantly lower financing costs at the start of the year and the sustained strength of the Mexican peso.

Total revenue for the January–March period reached MX$236.844 billion (US$13.62 billion), representing a 2.1% increase compared to 1Q25. In a filing with the Mexican Stock Exchange (BMV), the company noted that its financial results were supported by the appreciation of the Mexican peso against nearly all currencies in its operating regions, including a 16.3% gain against the US dollar and a 4.6% increase against the euro.

Domestic operations in Mexico remained a key growth driver. América Móvil reported a 5.1% increase in domestic revenue, totaling MX$86.307 billion (US$4.96 billion). Profit in the Mexican market reached MX$27.880 billion (US$1.6 billion), a 7.7% increase compared to the same period in the previous year.

Operational dynamics in the mobile segment were shaped by new regulatory requirements. During the quarter, Telcel — América Móvil’s Mexican subsidiary — added 91,000 new postpaid subscribers. However, the company disconnected 482,000 prepaid users as part of a mandatory registration process initiated by the Telecommunications Regulatory Commission (CRT). Despite these disconnections, Telcel ended the quarter with 84.3 million mobile subscribers, a 0.4% annual increase.

Comparative Performance: 1Q26 vs. 4Q25

The first-quarter results mark a notable shift in profitability compared to the close of 2025. In 4Q25, América Móvil reported a net profit of MX$19.134 billion (US$1.1 billion). The 1Q26 result of MX$23.401 billion (US$1.35 billion) represents a sequential increase of approximately 22%, although total revenue declined slightly from the MX$244.897 billion (US$14.09 billion) reported in the final quarter of 2025.

In 4Q25, growth was driven by record subscriber additions, including 2.5 million wireless users globally, driven primarily by 2.8 million postpaid gains that offset 298,000 prepaid losses. By comparison, subscriber growth in 1Q26 was more moderate, particularly as the company adjusted its prepaid base in Mexico in response to regulatory requirements.

Financial efficiency also shifted between the two periods. In 4Q25, EBITDA totaled MX$94.9 billion (US$5.46 billion), with a margin of 38.8%. In 1Q26, margins remained broadly stable, but net profit benefited more significantly from lower financing costs, which had already begun declining in late 2025. At the end of December 2025, the company reduced net debt by MX$20 billion (US$1.15 billion), strengthening its balance sheet heading into 2026.

Regulatory Oversight and the Preponderance Review

Despite its strong financial performance, América Móvil faces increased regulatory scrutiny. In March 2026, the CRT and the National Antimonopoly Commission (CNA) signed a formal inter-institutional agreement to coordinate the 2026 Biennial Review of Preponderance Measures.

The agreement, signed by CRT President Norma Solano Rodríguez and CNA President Andrea Marván Saltiel, establishes a framework for evaluating and potentially modifying asymmetrical regulations applied to dominant market players. As the designated “Preponderant Economic Agent” in the telecommunications sector, América Móvil is subject to specific rules intended to promote competition and prevent monopolistic practices.

Under the coordination mechanism, the CNA and CRT will share technical opinions, updated market data, and supporting documentation. The CNA retains the authority to determine preponderance and mandate structural remedies, including potential asset divestitures, if existing measures are deemed insufficient to ensure competitive market conditions. Meanwhile, the CRT oversees spectrum management and the granting of concessions.