10-Q · May 4, 2026
ExxonMobil's Q1 2026 results showed a marked decline in net income to $4.2 billion, down from $7.7 billion in the prior year, attributed to unfavorable market conditions and increased expenses. Revenue increased…
Earnings analysis · 10-Q
XOM earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
XOM reported a strong Q2 recovery, with revenue of $116.017 billion and EPS of $3.52, materially above both Q1 2026 and Q2 2025 levels. Earnings rose to $14.5 billion as higher crude prices, refining margins, and…
Read full summary
XOM reported a strong Q2 recovery, with revenue of $116.017 billion and EPS of $3.52, materially above both Q1 2026 and Q2 2025 levels. Earnings rose to $14.5 billion as higher crude prices, refining margins, and Guyana/Permian growth more than offset disruption-related volume losses, maintenance, depreciation, and impairments. Cash flow was robust and debt declined, although management highlighted continued exposure to Middle East disruption and market volatility; the filing maintained $27 billion to $29 billion of 2026 cash-capex plans rather than providing revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.52
What stood out
-
Revenue and EPS rose sharply
Q2 revenue was $116.017 billion, up $30.877 billion, or 36.3%, from Q1 2026 revenue of $85.140 billion and up $34.507 billion, or 42.3%, from Q2 2025 revenue of $81.510 billion. Diluted EPS of $3.52 increased from $1.00 in Q1 2026 and $1.64 in Q2 2025.
-
Earnings more than doubled year over year
Reported Q2 earnings were $14.5 billion versus $7.1 billion a year earlier. Management attributed the increase to higher prices and margins, advantaged investments, and structural cost savings, partly offset by depreciation, maintenance, Middle East disruptions, and identified items.
-
Upstream growth offset disruption impacts
Upstream earnings increased to $7.927 billion from $5.402 billion in Q2 2025. Higher crude realizations added $4.650 billion and advantaged Guyana/Permian volume growth added $1.140 billion, while Middle East disruptions reduced earnings by $1.060 billion.
-
Refining margins drove Energy Products
Energy Products earnings increased to $5.465 billion from $1.366 billion a year earlier. Stronger refining margins added $3.180 billion and favorable derivative timing added $2.560 billion, despite $1.180 billion of primarily impairment-related identified losses.
-
Operating cash flow and implied FCF surged
Q2 operating cash flow was $23.555 billion and cash capex was $6.787 billion, implying free cash flow of $16.768 billion and capex intensity of 28.8% of operating cash flow. Cash flow from operations and asset sales was $23.985 billion, up from $11.726 billion a year earlier.
-
Debt declined while capital returns remained high
The balance sheet strengthened modestly: total debt was $42.4 billion at June 30, 2026, down from $43.5 billion at year-end 2025; net-debt-to-capital was 10.7%, down 0.3 percentage points. The company repurchased $10.0 billion of stock and paid $8.6 billion in dividends during the first six months.
What to watch
-
Middle East disruption constrained volumes
Middle East disruptions reduced Q2 Upstream earnings by $1.060 billion and Energy Products earnings by $310 million. They also contributed to a 116 thousand oil-equivalent-barrel-per-day decline in Q2 upstream production to 4.514 million oil-equivalent barrels per day.
-
Reserves and impairments weighed on earnings
Identified items reduced Q2 results, including a $1.199 billion Upstream loss from financial reserves and a $1.180 billion Energy Products loss mainly from impairments. These items offset part of the favorable pricing and margin environment.
-
No material risk-factor update disclosed
No material market-risk change was reported: Item 3 states market-risk information for the six months ended June 30, 2026 does not differ materially from the 2025 Form 10-K. The filing continues to identify volatile prices, margins, derivatives, regulation, and geopolitical events as forward-looking risks.
-
Working capital consumed cash
Cash generation included a $3.9 billion reduction from operational working-capital changes in the first six months of 2026. In addition, cash at period end was $10.588 billion while total debt remained $42.4 billion.
Management's outlook
The filing reiterates planned 2026 cash capex of $27 billion to $29 billion, subject to individual-project progress. It also reiterates an expectation for $20 billion of 2026 share repurchases, assuming reasonable market conditions; no numeric revenue or EPS outlook was provided in the 10-Q.
Earlier filings 4
10-K · February 18, 2026
ExxonMobil’s 2025 Form 10-K reiterates a dual focus on defending and growing legacy hydrocarbon businesses while scaling a Low Carbon Solutions (LCS) agenda (CCS, hydrogen, ammonia, lower‑emission fuels, Proxxima™ resin…
10-Q · August 4, 2025
ExxonMobil reported total revenues and other income of $81,506 million for Q2 2025, down from $93,060 million in Q2 2024, and diluted EPS of $1.64 versus $2.14 a year ago. Operating profitability remained positive with…
10-K · February 19, 2025
Exxon Mobil's 2024 Form 10-K highlights the May 3, 2024 closing of the Pioneer acquisition (545 million shares issued, fair value $63 billion; $5 billion of assumed debt) and reiterates a dual strategy of defending and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.