Millicom (TIGO) Q3 2026: Revenue Beats but EPS Misses 30% on One-Time Charges
As seen on the 24/7 Wall St. homepage on November 5, 2026.
Acquisitions lifted revenue past expectations, but earnings missed estimates by 30% as a Guatemala litigation settlement, Colombia restructuring and net financial expenses drained the bottom line. Equity free cash flow still rose to $316 million, keeping the roughly $1.1 billion full-year target intact.
Continue ReadingShow less
Millicom's third-quarter revenue of $2.28 billion came in roughly 2% ahead of the $2.23 billion consensus, but the top-line win was largely an acquisition story rather than organic momentum. The full consolidation of Coltel, along with Tigo Uruguay and Tigo Ecuador added since late 2025, inflated the reported revenue growth rate to 60% year over year, while underlying organic growth registered a more modest 4.8%.
The earnings miss was steep and driven by several simultaneous drains on the bottom line. A settlement with former Tigo Guatemala executives contributed $71 million in non-operating expenses, Colombia restructuring charges added another $20 million, and net financial expenses surged to $314 million from $162 million a year earlier, a comparison made harder by the prior-year quarter's $138 million gain on the sale of Lati Operations. Together, those items pushed reported EPS to $0.58, against an analyst estimate of $0.83, a shortfall of just over 30%.
The inconsistency between top-line strength and bottom-line weakness is not new for Millicom. Looking back over the prior several quarters, the company swung between a steep Q4 2024 miss and strong beats in Q1 and Q3 2025, then posted a dramatic Q1 2026 miss before recovering partially in Q2 2026. The pattern reflects how heavily one-time items and acquisition accounting can distort any single quarter's reported profit.
Sponsored
Cash generation provided the clearest bright spot in the report. Equity free cash flow rose 27% to $316 million for the quarter, bringing the year-to-date total to $867 million. CEO Marcelo Benitez stated that the company remains "firmly on track" to reach its full-year EFCF target of around $1.1 billion, and management also reiterated a year-end leverage goal of below 2.5x.
Looking ahead, management flagged a handful of risks worth monitoring: higher and more volatile energy prices linked to the Middle East conflict, elevated foreign-exchange volatility in Bolivia, and the ongoing integration costs embedded in the Colombia and Chile operations. Coltel has posted a net loss of $168 million since its acquisition, and Tigo Chile losses have already exceeded Millicom's recognized investment in that business.