Barrick Gold Corp. (TSX:ABX, NYSE:GOLD) shares climbed nearly 7% following the release of its first quarter 2026 results, after the company reported earnings, production, and cash flow that significantly exceeded analyst expectations.
For the quarter ended March 31, Barrick posted adjusted earnings per share of $0.98, beating the consensus estimate of $0.74.
Revenue rose to $5.22 billion, surpassing expectations of approximately $4.53 billion and increasing from $3.13 billion in the prior-year period.
The stronger performance was driven by higher-than-expected gold production and improved operational efficiency, supported by elevated realized gold prices. Barrick produced 719,000 ounces of gold during the quarter, exceeding its guidance range of 640,000 to 680,000 ounces. Copper production totaled 49,000 tonnes, in line with expectations.
All-in sustaining costs (AISC) for gold were $1,708 per ounce, down 4% year-over-year and below internal expectations for the quarter, while total cash costs rose to $1,327 per ounce.
Looking ahead, the company reiterated full-year guidance, with gold production expected between 2.9 million and 3.25 million ounces and copper production between 190,000 and 220,000 tonnes. Second-quarter gold production is forecast at 730,000 to 770,000 ounces, with sequential improvement expected through the remainder of the year.
Barrick also declared a quarterly dividend of $0.175 per share and announced a new $3 billion share buyback program.
The company said its North American Barrick IPO remains on track for completion by year-end 2026.
“We started the year with another strong quarter. Building on momentum from Q4, we operated safely and outperformed our plan on both gold production and costs,” Barrick Gold CEO Mark Hill said.
“Our performance allowed us to capture even more of the higher gold price, producing significantly higher earnings and cash flow compared to a year ago.”
Jefferies analysts said Barrick’s first-quarter results came in ahead of expectations across earnings, production, and cash flow, driven by stronger output and lower costs.
The firm noted that the market had been expecting gold production in the 640,000 to 680,000 ounce range, while actual production reached 719,000 ounces.
Jefferies added that production is expected to strengthen through the year, including roughly 750,000 ounces in the second quarter, supported by ramp-ups at key operations and improved mine sequencing.
The firm noted that adjusted earnings per share of $0.98 exceeded its $0.80 estimate and consensus forecasts, while EBITDA and free cash flow also came in ahead of expectations at $3.93 billion and $1.58 billion, respectively.
The analysts attributed the earnings beat to higher gold sales and lower production costs, with particularly strong contributions from Nevada Gold Mines and Loulo-Gounkoto.
Jefferies reiterated its view that Barrick remains undervalued, noting the stock trades at roughly 0.6 times net asset value.
However, it said a more meaningful re-rating would likely depend on asset portfolio simplification in higher-risk jurisdictions and progress on the North American IPO, alongside continued capital returns.