We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shell Q4 Earnings: Can Upstream Gains Offset Weak Spots?
Read MoreHide Full Article
Key Takeaways
SHEL's Q4 earnings are expected at $1.21 per share on $68.1B revenues, with flat revisions in recent days.
Upstream output rose slightly from Q3, aided by the Adura JV, offsetting weakness in marketing and chemicals.
Shell's marketing and chemicals units likely faced Q4 headwinds from seasonality, costs and shifting demand.
Shell plc (SHEL - Free Report) is set to release fourth-quarter results on Feb. 5. The Zacks Consensus Estimate for earnings is $1.21 per share on revenues of $68.1 billion.
Let’s delve into the factors that might have influenced the integrated energy behemoth’s results for the December quarter. But it’s worth taking a look at SHEL’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, Europe’s largest oil company beat the consensus mark on the back of cost reductions and robust oil volumes. SHEL had reported earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $1.86, topping the Zacks Consensus Estimate of $1.72. However, revenues of $70.4 billion missed the Zacks Consensus Estimate by nearly 6% due to a decline in oil prices.
Shell beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 5.2%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a marginal 0.8% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 1.9% increase from the year-ago period.
Factors to Consider
Last month, Shell issued an updated outlook for the fourth quarter of 2025, offering an insight into how one of the world’s largest integrated energy companies is positioning itself across the key business segments.
Shell’s marketing division is forecasted to have faced headwinds in the fourth quarter, with adjusted earnings expected to be under pressure. Seasonal factors likely contributed to weaker performance, as colder temperatures in the Northern Hemisphere often lead to lower demand for certain energy products, including refined fuels and natural gas.
The company also disclosed that its chemicals sub-segment may have seen a considerable loss in adjusted earnings for the fourth quarter. The chemicals and products division, which has been a significant area of focus for Shell in recent years, has encountered a variety of challenges, from volatile raw material costs to shifting market demands.
On a positive note, Shell’s upstream division production is expected to have been between 1.84 million and 1.94 million barrels of oil equivalent per day (boe/d). This represents a slight increase compared with the 1.83 million boe/d produced in third-quarter 2025 due to the incorporation of Adura JV.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for SHEL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Shell has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.21 per share each.
Zacks Rank: Shell currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Shell, here are some firms from the energy space that you may want to consider on the basis of our model:
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +22.11% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 4.
The Zacks Consensus Estimate for fiscal 2026 sales of Helmerich & Payne indicates 4.8% growth. Valued at around $3.4 billion, HP has gained 8.6% in a year.
Patterson-UTI Energy (PTEN - Free Report) has an Earnings ESP of +19.15% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 4.
Patterson-UTI Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two, with the average being 17.5%. Valued at nearly $3 billion, PTEN has lost 4.5% in a year.
Phillips 66 (PSX - Free Report) has an Earnings ESP of +0.88% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 4.
Phillips 66 beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 18.3%. Valued at nearly $58 billion, PSX has gained 21.8% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shell Q4 Earnings: Can Upstream Gains Offset Weak Spots?
Key Takeaways
Shell plc (SHEL - Free Report) is set to release fourth-quarter results on Feb. 5. The Zacks Consensus Estimate for earnings is $1.21 per share on revenues of $68.1 billion.
Let’s delve into the factors that might have influenced the integrated energy behemoth’s results for the December quarter. But it’s worth taking a look at SHEL’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, Europe’s largest oil company beat the consensus mark on the back of cost reductions and robust oil volumes. SHEL had reported earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $1.86, topping the Zacks Consensus Estimate of $1.72. However, revenues of $70.4 billion missed the Zacks Consensus Estimate by nearly 6% due to a decline in oil prices.
Shell beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, resulting in an earnings surprise of 5.2%, on average. This is depicted in the graph below:
Shell PLC Unsponsored ADR Price and EPS Surprise
Shell PLC Unsponsored ADR price-eps-surprise | Shell PLC Unsponsored ADR Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a marginal 0.8% improvement year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 1.9% increase from the year-ago period.
Factors to Consider
Last month, Shell issued an updated outlook for the fourth quarter of 2025, offering an insight into how one of the world’s largest integrated energy companies is positioning itself across the key business segments.
Shell’s marketing division is forecasted to have faced headwinds in the fourth quarter, with adjusted earnings expected to be under pressure. Seasonal factors likely contributed to weaker performance, as colder temperatures in the Northern Hemisphere often lead to lower demand for certain energy products, including refined fuels and natural gas.
The company also disclosed that its chemicals sub-segment may have seen a considerable loss in adjusted earnings for the fourth quarter. The chemicals and products division, which has been a significant area of focus for Shell in recent years, has encountered a variety of challenges, from volatile raw material costs to shifting market demands.
On a positive note, Shell’s upstream division production is expected to have been between 1.84 million and 1.94 million barrels of oil equivalent per day (boe/d). This represents a slight increase compared with the 1.83 million boe/d produced in third-quarter 2025 due to the incorporation of Adura JV.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for SHEL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Shell has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.21 per share each.
Zacks Rank: Shell currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Shell, here are some firms from the energy space that you may want to consider on the basis of our model:
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +22.11% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 4.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fiscal 2026 sales of Helmerich & Payne indicates 4.8% growth. Valued at around $3.4 billion, HP has gained 8.6% in a year.
Patterson-UTI Energy (PTEN - Free Report) has an Earnings ESP of +19.15% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 4.
Patterson-UTI Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two, with the average being 17.5%. Valued at nearly $3 billion, PTEN has lost 4.5% in a year.
Phillips 66 (PSX - Free Report) has an Earnings ESP of +0.88% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 4.
Phillips 66 beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 18.3%. Valued at nearly $58 billion, PSX has gained 21.8% in a year.