First Majestic Silver reported record quarterly revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter of 2026, even as the price of silver crashed about 50% from its January high. The company's stock, which had fallen 45% from its February peak, jumped 6.8% on Wednesday as silver pushed back above $61 an ounce.
Record financials, missed earnings
First Majestic posted Q2 revenue of $415.5 million, up more than 50% from the same period last year. EBITDA more than doubled to $257.1 million, and free cash flow hit a record $194.6 million. The company also raised its dividend by 217% and ended the quarter with a treasury of $1.25 billion.
But adjusted earnings of $0.21 per share missed analyst expectations of $0.26. The miss came as silver prices tumbled from a January record near $121.62 an ounce to around $58 by late July. The metal has since recovered some ground, rising about 4% on Wednesday alone.
Silver's wild ride and operating leverage
Silver miners have a particular vulnerability to price swings. All-in sustaining costs are largely fixed in the short term, so a drop in the metal price hits profits disproportionately. That operating leverage works both ways: when silver rises, earnings can surge faster than revenue.
First Majestic's stock closed at $15.03 on July 31, the day analyst Heiko Ihle of H.C. Wainwright raised his price target to $27 from $26. That implies about 80% upside from the current level. The stock's put-call ratio by volume has dropped to 0.22 from about 0.96 around the time of the earnings release, suggesting options traders are now betting on further gains.
Hecla Mining, another silver producer, reported falling realized prices in its most recent quarter. The Silver Institute forecasts a record supply deficit in 2026, the sixth consecutive year of shortfall.
Pan American Silver is scheduled to report results on August 12, which will give investors another read on the sector's health. Broader economic data also matters: private payrolls grew just 44,000 in July, well below the 70,000 expected, and the Friday jobs report is forecast to show 80,000 new positions. A weaker labor market could push the Federal Reserve toward rate cuts, which often supports precious metals.
For First Majestic, the question is whether the silver price can hold above $61 and continue its recovery. The company's record cash position gives it flexibility, but the stock remains far below its February high. Wednesday's bounce was a start, but the path back to the peak is long.
