Freeport-McMoRan Rises on Earnings Beat but Legal Risks Loom as Stock Ranks 74th in $1.28B Trading Volume

Market Snapshot

Freeport-McMoRan (FCX) closed with a 1.07% increase on January 13, 2026, as the stock traded at a volume of $1.28 billion, ranking 74th in market activity for the day. The upward movement followed strong earnings performance in Q3 2025, where the company reported earnings per share (EPS) of $0.50, surpassing forecasts by 21.95%, and revenue of $6.97 billion, exceeding expectations by 4.03%. These results drove a 1.45% pre-market price increase to $41.37, reflecting investor optimism about the company’s operational and financial performance.

Key Drivers

The recent earnings beat and revenue outperformance underscored Freeport-McMoRan’s ability to capitalize on favorable market conditions. The company’s Q3 2025 results highlighted its resilience in a volatile commodities environment, with copper and gold prices surging due to global electrification trends and industrial demand. Analysts noted that the firm’s EBITDA is projected to grow to $12 billion in 2026, with operating cash flows expected to reach $8 billion, driven by improved cost management and operational efficiency. CEO Kathleen Quirk emphasized strategic cost reductions, including an $800 million cut in capital expenditures for 2025-2026, while addressing operational challenges at the Grasberg mine in Indonesia.

Institutional confidence in FCX has also grown, with major investors like New York State Teachers Retirement System and DZ BANK AG significantly increasing their stakes in the third and second quarters of 2025. These inflows, combined with a “Buy” consensus rating from analysts and raised price targets (e.g., $63 by Scotiabank and $68 by JPMorgan), reinforced positive sentiment. However, insider selling by executives, including a 21.26% reduction in holdings by CAO Stephen T. Higgins, introduced some ambiguity about internal confidence.

A critical overhang emerged from a securities fraud lawsuit filed by the Schall Law Firm, alleging that FCX misled investors by failing to ensure safety practices at the Grasberg Block Cave mine. The class-action suit, covering transactions from February 2022 to September 2025, claims inadequate safety measures exposed workers to risks, potentially harming the company’s reputation and financial standing. While the case has not yet been certified, it could divert management attention and incur legal costs, creating uncertainty for shareholders.

Despite these challenges, Freeport-McMoRan’s long-term outlook remains anchored to copper demand growth, with management projecting EBITDA exceeding $15.5 billion by 2027-2028. The firm’s phased restart plans at Grasberg and focus on operational excellence aim to balance safety and productivity. However, the legal risks and insider selling highlight potential vulnerabilities, balancing the optimism around earnings growth and institutional support.

The interplay of these factors—strong earnings, institutional backing, and legal risks—positions FCX as a stock with significant upside potential but also notable short-term headwinds. Investors will likely monitor the resolution of the Grasberg-related litigation and the company’s progress in executing its cost-cutting and operational strategies.