Shares of IQSTEL Inc. (IQST) are up about 50% on Thursday after the company released preliminary first-half 2026 revenue of $207 million. That's a big jump from $130 million in the same period last year, representing roughly 59% growth.

Leandro Jose Iglesias, chairman and CEO of IQSTEL, said the strong performance during what is typically a slower operating period gives the company confidence for the second half of the year. The completion of the Ultranet acquisition is expected to boost profitability and help IQSTEL move toward a $500 million annual revenue run rate. The deal should also push EBITDA above an $8 million annual run rate while improving operating leverage and cash flow.

IQSTEL operates in the Communication Services sector, which is currently ranked seventh out of 11 sectors. The sector has been lukewarm, up just 0.22% today and down 4.58% over the past 90 days. But IQSTEL is outperforming by nearly 39 percentage points today, a stark contrast to the sector's modest gains. Over the past 30 days, the sector has only gained 1.18%, making IQSTEL's surge stand out even more.

So what does IQSTEL actually do? It's a technology company offering telecom and internet services, including VoIP, SMS, and international fiber-optic connections. It also has a fintech division that provides remittance services and a mobile app. The company is transforming itself into a global technology platform for next-generation digital services, leveraging its extensive network and relationships in the telecom space.

Looking ahead, IQSTEL is expected to report its next financial update around Aug. 13. Analysts estimate a loss of 23 cents per share, an improvement from a loss of 82 cents a year ago. Revenue is expected to come in at $106.05 million, up from $72.18 million. The consensus remains positive, with expectations for significant growth and narrowing losses.

As of publication, IQSTEL shares were trading at $1.36, up 53.77% on the day.