Operating margins remain highly volatile, swinging from a negative 31.9% in 2025Q4 to a positive 34.9% in 2026Q1, reflecting the difficulty of maintaining consistent leverage amidst inflationary pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Sep'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 9.04T | 8.33T | 4.14T | 2.06T | 4.94T | 2.58T | 886.76B | 487.07B | 351.95B | 102.53B | 60.41B | 40.5B | 33.34B | 27.29B | 22.12B | 18.5B | 14.63B | 12.2B | 10.61B | 9.07B | 7.43B | 5.72B | 4.53B | 3.77B | 4.02B | 7.06B | 3.23B | 3.18B | 3.17B |
| Revenue Growth % | 87.36% | 101.3% | 100.94% | -58.36% | 91.58% | 191.06% | 82.06% | 38.39% | 243.26% | 69.74% | 49.16% | 21.46% | 22.19% | 23.38% | 19.56% | 26.46% | 19.85% | 15.05% | 16.91% | 22.2% | 29.92% | 26.25% | 20.14% | -6.22% | -43.06% | 118.73% | 1.36% | 0.32% | - |
| Cost of Goods Sold | 2.19T | 2.05T | 1.11T | 546.76B | 1.3T | 695.18B | 222.19B | 129.27B | 91.95B | 27.96B | 17.93B | 11.9B | 10.4B | 8.18B | 6.17B | 5.02B | 3.91B | 2.27B | 5.71B | 4.97B | 4.5B | 3.7B | 2.97B | 2.65B | 2.9B | 3.66B | 896M | 774.92M | 807.94M |
| COGS % of Revenue | - | 24.58% | 26.71% | 26.55% | 26.22% | 26.93% | 25.06% | 26.54% | 26.13% | 27.27% | 29.69% | 29.39% | 31.21% | 29.98% | 27.91% | 27.14% | 26.71% | 18.58% | 53.85% | 54.8% | 60.64% | 64.76% | 65.66% | 70.35% | 72.11% | 51.83% | 27.77% | 24.35% | 25.47% |
| Gross Profit | 6.85T | 6.28T | 3.03T | 1.51T | 3.65T | 1.89T | 664.58B | 357.8B | 260B | 74.57B | 42.47B | 28.59B | 22.94B | 19.11B | 15.94B | 13.48B | 10.72B | 9.94B | 4.9B | 4.1B | 2.92B | 2.01B | 1.55B | 1.12B | 1.12B | 3.4B | 2.33B | 2.41B | 2.36B |
| Gross Margin % | 75.78% | 75.42% | 73.29% | 73.45% | 73.78% | 73.07% | 74.94% | 73.46% | 73.87% | 72.73% | 70.31% | 70.61% | 68.79% | 70.02% | 72.09% | 72.86% | 73.29% | 81.42% | 46.15% | 45.2% | 39.36% | 35.24% | 34.34% | 29.65% | 27.89% | 48.17% | 72.23% | 75.65% | 74.53% |
| Gross Profit Growth % | - | 107.13% | 100.52% | -58.55% | 93.45% | 183.77% | 85.74% | 37.61% | 248.65% | 75.58% | 48.54% | 24.67% | 20.04% | 19.84% | 18.31% | 25.72% | 7.88% | 102.96% | 19.39% | 40.33% | 45.09% | 29.56% | 39.15% | -0.3% | -67.03% | 45.88% | -3.23% | 1.82% | - |
| Operating Expenses | 6.19T | 5.42T | 3.18T | 1.64T | 5.65T | 1.9T | 604.91B | 325.34B | 215.48B | 52.56B | 30.16B | 22.36B | 17.49B | 14.59B | 11.98B | 9.62B | 7.56B | 7.32B | 2.85B | 2.46B | 2.01B | 1.51B | 1.15B | 1.01B | 1.33B | 2.53B | 1.7B | 1.66B | 1.55B |
| OpEx % of Revenue | - | 65.07% | 76.83% | 79.52% | 114.23% | 73.72% | 68.22% | 66.8% | 61.22% | 51.26% | 49.92% | 55.23% | 52.47% | 53.46% | 54.16% | 52.01% | 51.67% | 59.99% | 26.91% | 27.17% | 27.1% | 26.44% | 25.41% | 26.77% | 33% | 35.8% | 52.67% | 52.21% | 48.79% |
| Selling, General & Admin | 2.3T | 2.28T | 1.18T | 655.67B | 1.45T | 745.7B | 227.12B | 129.74B | 92.75B | 25.35B | 14.93B | 12.48B | 9.78B | 7.72B | 6.42B | 5.18B | 3.95B | 4.37B | 2.85B | 2.46B | 1.81B | 1.51B | 1.15B | 1.01B | 1.33B | 2.53B | 866M | 898.91M | 769.95M |
| SG&A % of Revenue | - | 27.41% | 28.61% | 31.84% | 29.4% | 28.89% | 25.61% | 26.64% | 26.35% | 24.72% | 24.71% | 30.83% | 29.33% | 28.28% | 29.04% | 27.99% | 26.98% | 35.82% | 26.91% | 27.17% | 24.38% | 26.39% | 25.48% | 26.85% | 33% | 35.8% | 26.84% | 28.24% | 24.27% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 665.91B | 861.44B | -146.47B | -125.06B | -2T | -16.91B | 59.67B | 32.46B | 44.52B | 22.01B | 12.32B | 6.23B | 5.44B | 4.52B | 3.97B | 3.86B | 3.16B | 2.62B | 2.04B | 1.64B | 909.83M | 502.81M | 404.28M | 108.5M | -205.28M | 872.78M | 631M | 745.93M | 816.84M |
| Operating Margin % | 7.37% | 10.34% | -3.54% | -6.07% | -40.45% | -0.66% | 6.73% | 6.66% | 12.65% | 21.47% | 20.39% | 15.38% | 16.33% | 16.56% | 17.93% | 20.85% | 21.62% | 21.44% | 19.24% | 18.03% | 12.25% | 8.8% | 8.93% | 2.88% | -5.11% | 12.37% | 19.56% | 23.44% | 25.75% |
| Operating Income Growth % | - | 688.14% | -17.11% | 93.75% | -11730.66% | -128.33% | 83.84% | -27.1% | 102.25% | 78.73% | 97.72% | 14.44% | 20.47% | 13.92% | 2.83% | 21.98% | 20.87% | 28.17% | 24.76% | 79.81% | 80.95% | 24.37% | 272.59% | 152.86% | -123.52% | 38.32% | -15.41% | -8.68% | - |
| EBITDA | 2.83T | 2.91T | 1.17T | 579.08B | -310.28B | 797.58B | 301.41B | 153.13B | 113.68B | 37.09B | 20.2B | 10.67B | 8.69B | 7.39B | 6.58B | 6.01B | 4.87B | 4.16B | 3.33B | 3.05B | 2.3B | 2B | 2.06B | 1.99B | 1.9B | 2.71B | 1.46B | 1.51B | 1.59B |
| EBITDA Margin % | 31.28% | 34.94% | 28.18% | 28.12% | -6.27% | 30.9% | 33.99% | 31.44% | 32.3% | 36.18% | 33.44% | 26.34% | 26.05% | 27.09% | 29.74% | 32.52% | 33.32% | 34.1% | 31.39% | 33.63% | 30.94% | 35.01% | 45.57% | 52.92% | 47.24% | 38.47% | 45.38% | 47.41% | 50.27% |
| EBITDA Growth % | 91.37% | 149.57% | 101.35% | 286.63% | -138.9% | 164.62% | 96.83% | 34.71% | 206.45% | 83.65% | 89.36% | 22.81% | 17.52% | 12.36% | 9.36% | 23.41% | 17.14% | 24.95% | 9.11% | 32.84% | 14.83% | -3.02% | 3.45% | 5.06% | -30.08% | 85.41% | -2.97% | -5.39% | - |
| D&A (Non-Cash Add-back) | 2.16T | 2.05T | 1.31T | 704.15B | 1.69T | 814.48B | 241.74B | 120.67B | 69.16B | 15.08B | 7.88B | 4.44B | 3.24B | 2.87B | 2.61B | 2.16B | 1.71B | 1.54B | 1.29B | 1.42B | 1.39B | 1.5B | 1.66B | 1.89B | 2.1B | 1.84B | 833M | 762.92M | 777.94M |
| EBIT | 1.13T | 287.92B | 1.6T | -528.82B | -1.45T | 365.61B | 55.76B | 43.21B | 14.73B | 25.28B | 18.32B | 5.88B | 5.89B | 5.16B | 4.31B | 4.08B | 3.21B | 2.47B | 1.71B | 1.64B | 909.83M | -920.81M | 193.22M | 108.5M | -205.28M | 872.78M | 631M | 745.93M | 816.84M |
| Net Interest Income | -560.31B | -479.66B | -229.97M | -194.39M | -85.15M | -103.21B | -38.77B | -152.89M | 18.1B | 1.84B | 4.35B | -563M | 244M | 636M | 276M | 92M | -31M | -414M | -114M | -441M | -349.23M | -672.44M | -752.08M | -665.69M | -848.06M | -229.21M | -300M | -236.98M | -214.96M |
| Interest Income | 25.13B | 0 | 26.54M | 0 | 14.8M | 0 | 7.74B | 67.24M | 2.71B | 543M | 722M | 203M | 440M | 743M | 380M | 237M | 158M | 120M | 89M | -170.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 548.6B | -191.74B | 1.44T | -587.94B | -1.57T | 262.4B | 9.25B | 21.13B | 5.65B | 23.65B | 16.56B | 5.13B | 5.7B | 5.05B | 4.2B | 3.94B | 3.02B | 2.21B | 1.51B | 1.1B | 248.14M | 1.46B | -648.04M | 366.57M | -5.72B | 211.19M | 356M | 504.95M | 581.88M |
| Pretax Margin % | 6.07% | -2.3% | 34.86% | -28.55% | -31.84% | 10.17% | 1.04% | 4.34% | 1.61% | 23.07% | 27.42% | 12.66% | 17.08% | 18.49% | 18.97% | 21.28% | 20.68% | 18.15% | 14.22% | 12.09% | 3.34% | 25.6% | -14.31% | 9.73% | -142.46% | 2.99% | 11.04% | 15.87% | 18.34% |
| Income Tax | 145.22B | -46.43B | 409.15B | -338.26B | -179.73B | 202.1B | 24.26B | 29.12B | -5.94B | 8.49B | 6.01B | 1.69B | 1.97B | 1.79B | 1.46B | 1.4B | 1.08B | 798M | 535M | 292M | -18.38M | 121.16M | 26.75M | -5.87M | -1.31B | 112.1M | 85M | 146.99M | 207.96M |
| Effective Tax Rate % | 26.47% | 24.22% | 28.37% | 57.53% | 11.42% | 77.02% | 262.19% | 137.81% | -105.17% | 35.88% | 36.32% | 33% | 34.53% | 35.51% | 34.87% | 35.43% | 35.57% | 36.03% | 35.48% | 26.62% | -7.41% | 8.28% | -4.13% | -1.6% | 22.81% | 53.08% | 23.88% | 29.11% | 35.74% |
| Net Income | 377.26B | -170.01B | 1.01T | -257.73B | -1.41T | 8.66B | -16.8B | -9.03B | 11.09B | 14.97B | 10.46B | 3.4B | 3.67B | 3.2B | 2.69B | 2.51B | 1.94B | 1.41B | 961M | 884M | 245.07M | 1.33B | -671.82M | 354.84M | -4.39B | 100.09M | 271M | 357.96M | 373.93M |
| Net Margin % | 4.17% | -2.04% | 24.47% | -12.52% | -28.5% | 0.34% | -1.89% | -1.85% | 3.15% | 14.6% | 17.31% | 8.4% | 11.02% | 11.73% | 12.14% | 13.59% | 13.23% | 11.51% | 9.06% | 9.74% | 3.3% | 23.32% | -14.84% | 9.42% | -109.3% | 1.42% | 8.4% | 11.25% | 11.79% |
| Net Income Growth % | 69.48% | -116.79% | 492.82% | 81.71% | -16365.24% | 151.57% | -86% | -181.47% | -25.92% | 43.15% | 207.29% | -7.35% | 14.71% | 19.26% | 6.84% | 29.87% | 37.72% | 46.2% | 8.71% | 260.71% | -81.61% | 298.38% | -289.33% | 108.08% | -4487.77% | -63.07% | -24.29% | -4.27% | - |
| Net Income (Continuing) | 403.38B | -145.3B | 1.03T | -249.69B | -1.39T | 60.29B | -15.01B | -7.99B | 11.59B | 15.17B | 10.55B | 3.44B | 3.73B | 3.25B | 2.73B | 2.54B | 1.95B | 1.42B | 973M | 782M | 266M | 1.34B | -671.82M | 354.84M | -4.39B | 100.09M | 271M | 357.96M | 373.93M |
| Discontinued Operations | 0 | 0 | 0 | 11.36B | 0 | -44.29B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 102M | -20.37M | -9.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 124.54B | 119.4B | 109.78B | 168.88B | 50.48B | 16.7B | 9.66B | 79.64M | 4.96B | 846M | 542M | 416M | 351M | 268M | 199M | 144M | 107M | 88M | 81M | 79M | 70.46M | 42.41M | 29.73M | 32.26M | 10.1M | 12.01M | 15M | 17M | 20M |
| EPS (Diluted) | 875.84 | -394.70 | 2350.40 | -1303.00 | -3272.00 | 20.10 | -39.00 | -10.20 | 12.30 | 21.05 | 20.50 | 17.55 | 18.95 | 16.35 | 13.65 | 12.30 | 9.25 | 7.15 | 4.90 | 4.50 | 1.25 | 6.80 | -3.40 | 1.80 | -22.30 | 0.50 | 1.40 | 1.80 | 1.90 |
| EPS Growth % | 69.31% | -116.79% | 280.38% | 60.18% | -16378.61% | 151.54% | -282.35% | -182.93% | -41.57% | 2.68% | 16.81% | -7.39% | 15.9% | 19.78% | 10.98% | 32.97% | 29.37% | 45.92% | 8.89% | 260% | -81.62% | 300% | -288.89% | 108.07% | -4560% | -64.29% | -22.22% | -5.26% | - |
| EPS (Basic) | - | -394.70 | 2350.40 | -1303.00 | -3272.00 | 20.10 | -39.00 | -10.20 | 12.30 | 21.05 | 20.50 | 17.55 | 18.95 | 16.35 | 13.65 | 12.30 | 9.25 | 7.15 | 4.90 | 4.50 | 1.25 | 6.80 | -3.40 | 1.80 | -22.30 | 0.50 | 1.40 | 1.80 | 1.90 |
| Diluted Shares Outstanding | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 362.17M | 193.83M | 193.83M | 193.83M | 195.79M | 196.88M | 196.88M | 196.88M | 196.88M | 196.88M | 196.88M | 196.88M | 196.88M | 197.58M | 197.13M | 196.92M | 200M | 196.88M | 198.85M | 196.82M |
| Basic Shares Outstanding | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 430.74M | 362.17M | 193.83M | 193.83M | 193.83M | 195.79M | 196.88M | 196.88M | 196.88M | 196.88M | 196.88M | 196.88M | 196.24M | 195.82M | 197.58M | 197.13M | 196.92M | 200M | 196.88M | 198.85M | 196.82M |
| Dividend Payout Ratio | - | - | - | - | - | 8.59% | - | - | 642.57% | 26.82% | 28.74% | 24.95% | 35.37% | 30.64% | 30.91% | 36.41% | 54.42% | 1.35% | 2.08% | 4.3% | - | - | - | - | - | 467% | 99.26% | 78.49% | 68.45% |
Hyperinflationary currency devaluation risk
According to reported financial statements, TEO achieved a 72.9% revenue increase in 2026Q1, yet this figure is heavily distorted by IAS 29 hyperinflationary accounting standards, which complicates the assessment of true organic volume growth versus simple price adjustments necessitated by the local Argentine macroeconomic environment.
While the headline growth appears robust, the reliance on inflationary indexing suggests that top-line expansion may not reflect genuine market share gains or increased service adoption. Investors should monitor whether real ARPU growth can sustain this momentum as consumer purchasing power remains under significant pressure.
As indicated by recent quarterly data, TEO maintains a consistent gross margin profile of approximately 75%, suggesting that the company possesses a degree of pricing power inherent in its integrated infrastructure despite the broader challenges of operating within a highly volatile and inflationary economic landscape.
The stability of these margins implies that the company is successfully passing through inflationary cost increases to its subscriber base. However, the gap between these high gross margins and the significantly lower operating margins warrants further investigation into the efficiency of the company's overhead and administrative cost structure.
Based on the provided income statement data, TEO's operating margin has fluctuated wildly, swinging from a negative 31.9% in 2025Q4 to a positive 34.9% in 2026Q1, which suggests that the company struggles to maintain consistent operating leverage amidst unpredictable inflationary and non-operating expense cycles.
This volatility indicates that the company's cost base is not perfectly aligned with its revenue generation, likely due to the mismatch between ARS-denominated revenues and USD-linked operational costs. The lack of consistent operating scale suggests that management faces significant hurdles in optimizing profitability during periods of extreme macroeconomic instability.
Financial filings reveal that TEO's net income is frequently impacted by significant non-operating items, including foreign exchange losses and monetary position adjustments, which makes the reported net margin of -2.04% a poor indicator of the company's underlying operational health or its true cash-generating capability.
The wide variance between operating income and net income suggests that financial expenses and currency-related adjustments are the primary drivers of bottom-line results. Analysts should focus on operating cash flow rather than net income to better understand the company's ability to fund its capital-intensive network requirements.
Quick answers to the most common questions about buying TEO stock.
For fiscal year 2025, Telecom Argentina S.A. (TEO) reported total revenue of $8.33T. This represents a 262417.9% increase compared to $3.17B in 1998.
Telecom Argentina S.A. (TEO) reported a net loss of $170.01B for the fiscal year ending 2025.
Telecom Argentina S.A. (TEO) reported an operating income of $861.44B, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Telecom Argentina S.A. (TEO) generated $6.28T in gross profit for the year, representing a gross profit margin of 75.4%. This demonstrates the company's core pricing power and production efficiency.