Gold miner doubles down on the beat. Newmont Corporation posted Q4 EPS of $1.71, crushing the consensus estimate of $1.44 by 18.8%. The blowout quarter marks the company’s fifth consecutive earnings beat—a streak that began in Q4 2024 with a 35.8% surprise. Revenue hit $21.5B for the full year 2025, up 20% year-over-year, as elevated gold prices and improved operational execution drove profitability. Shares jumped 3.8% to $127.03 in regular trading, extending gains to 47.1% over the past three months.
Leadership transition takes center stage. CEO Tom Palmer announced his retirement effective year-end during the October earnings call, with President and COO Natascha Viljoen stepping into the CEO role. Viljoen, who emphasized “leveraging that experience to further unlock the value that we all know this business can deliver,” inherits a company with zero net debt and robust free cash flow generation. The smooth succession plan appears to have satisfied investors concerned about continuity at a critical inflection point for the world’s largest gold producer.
Balance sheet firepower creates options. Analysts on the call from UBS, Goldman Sachs, and RBC Capital Markets pressed management on capital allocation strategy given the company’s net debt position well below its target range. With gold prices sustaining recent strength, the question centers on whether Newmont accelerates share buybacks or builds cash reserves through 2026. Management’s commentary suggested flexibility, noting the company has “been returning cash to shareholders at a healthy rate” while maintaining optionality for strategic moves. Current market cap stands at $139.5B with shares trading at 13.5x forward earnings—a 32% discount to the trailing P/E of 19.8x.
Margin expansion tells the profitability story. Operating margin of 46.9% and net margin of 33.4% reflect the company’s ability to convert elevated gold prices into bottom-line results. Q3 2025 net income of $1.83B marked a 99% surge versus Q3 2024’s $922M, while the full-year profit margin nearly doubled from 2024 levels. The dramatic improvement underscores operational leverage in a rising commodity price environment—every $100 increase in gold prices flows disproportionately to earnings given Newmont’s low-cost producer status across its global asset base.
Analyst target suggests 7% upside. The consensus price target of $135.85 implies modest appreciation from current levels, though the stock has already outpaced expectations with a 58% rally from its 200-day average of $80.44. Forward EPS estimates of $9.43 for 2026 suggest analysts expect the earnings momentum to sustain, contingent on gold prices maintaining recent strength above $2,600 per ounce. The company’s forward P/E of 13.5x remains compressed relative to historical averages, potentially offering value if the precious metals bull market extends into 2026.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.