Eni S.p.A. (E Quick QuoteE - Free Report) reported second-quarter 2026 adjusted earnings of $1.76 per American Depository Receipt, missing the Zacks Consensus Estimate of $1.90 by 7.4%. The bottom line increased 122.8% from the year-ago quarter’s 79 cents.

Quarterly revenues of $26.35 billion rose 21.5% year over year and surpassed the consensus estimate of $24 billion by 9.8%.

Higher commodity realizations, production growth and stronger segment profitability supported revenues.

Eni SpA Price, Consensus and EPS Surprise

Eni SpA price-consensus-eps-surprise-chart | Eni SpA Quote

E’s Operational Performance

Eni operates through four business segments — Exploration & Production; Global Gas & LNG Portfolio, and Power; Refining, Chemicals and Sites in Transformation; and Transition Businesses.

E's Upstream Results Benefit From Pricing & Volumes

Exploration & Production turnover increased 25% year over year to €5.86 billion. Pro-forma adjusted EBIT nearly doubled to €4.77 billion from €2.42 billion, reflecting favorable volume and production mix, cost discipline and stronger commodity realizations. The negative impact of foreign currency translation partly offset these gains.

Total hydrocarbon production was 1,789 thousand barrels of oil equivalent per day (MBoe/d), up 7% from the prior-year quarter.

Liquids production increased 1% to 832 thousand barrels per day, while natural gas output climbed 14% to 5,006 million cubic feet per day (MMcf/d). The average liquids realization rose to $96.50 per barrel from $62.77 a year ago. The realized natural gas price was $8.42 per thousand cubic feet, up 18% from $7.14 in the prior-year period.

Eni Advances Its Upstream Growth Pipeline

Production growth was supported by project ramp-ups in Norway, Congo and Mexico, new start-ups in Angola, and the contribution from Searah, Eni’s joint venture with Petronas across Indonesia/Malaysia. Underlying production, excluding portfolio and price effects, increased 11% year over year.

The company also advanced several major developments. It reached final investment decisions for Baleine Phase 3 offshore Cote d’Ivoire, the Greater PAJ project offshore Angola and the Cronos gas project offshore Cyprus. Management expects its strong project pipeline to add 850 MBoe/d of new production by 2030.

E's Gas Portfolio Delivers Higher Sales

Global Gas & LNG Portfolio and Power sales increased 18% year over year to €4.06 billion. The businesses generated pro-forma adjusted EBIT of €503 million, up 30% from €387 million in the prior-year quarter.

Worldwide natural gas sales rose 19% to 10.75 billion cubic meters (bcm), supported by higher volumes in Italy and other European markets, including sales to hubs in Benelux, France and Germany/Austria. LNG sales increased 4% to 2.9 bcm from 2.8 bcm in the corresponding period of 2025. The core gas portfolio’s adjusted EBIT advanced 46% to €468 million, aided by asset optimization and other benefits from contract renegotiations and settlements.

In the second quarter of 2026, thermoelectric production totaled 3.91 terawatt-hours (TWh), 14% lower than 4.53 TWh in the prior-year quarter. The decrease was due to a lower plant utilization rate.

Eni's Transition Businesses Strengthen Results

Transition Businesses generated pro-forma adjusted EBIT of €521 million, nearly doubling from €262 million a year earlier.

Total sales managed by Enilive declined 3% year over year to 5.24 mmtons. Enilive’s bio throughput came in at 275 thousand tons, flat year over year. Enilive’s pro-forma adjusted EBIT more than doubled to €295 million, aided by improved biorefining margins despite a planned shutdown at the Venice biorefinery.

Plenitude’s pro-forma adjusted EBIT increased to €226 million from €133 million a year ago. Performance benefited from renewable capacity growth and the suspension of depreciation ahead of its planned deconsolidation. Installed renewable capacity reached 6 gigawatt (GW) at the end of the period compared with 4.5 GW a year earlier, representing organic development in Spain, the UK, Italy, Greece and Kazakhstan, along with the acquisitions in France and the United States. Retail gas sales managed by Plenitude declined 5% year over year to 0.65 bcm.

Progress in Refining & Chemicals

The Refining, Chemicals and Sites in Transformation segment reported a pro-forma adjusted loss of €40 million, narrowing from a loss of €193 million in the year-ago quarter. Refining generated a pro forma adjusted profit of €80 million as margins improved and major maintenance activities were completed.

Total refinery throughputs were 5.1 million tons (mmtons), down 20% from 6.4 mmtons in the corresponding period of 2025. The Standard Eni Refining Margin averaged $8.3 per barrel compared with $4.8 per barrel in the prior-year quarter.

Petrochemical product sales decreased 15% year over year to 0.61 mmtons. The Chemical segment reported a negative pro forma adjusted EBIT of €65 million, marking an improvement of 65% from the year-ago figure of negative €184 million.

Restructuring measures, prior plant closures and temporary product shortages supported the improvement. However, higher freight and logistics costs, narrower crude differentials and continued softness in chemical demand limited the segment’s recovery.

The Sites in Transformation business reported a pro-forma adjusted loss of €55 million due to plant restructuring expenses.

Eni Raises Cash Flow & Shareholder Return Outlook

Adjusted cash flow from operations before working-capital changes increased 61% to €4.47 billion. Organic capital expenditures declined 9% to €1.84 billion. Net debt stood at €11.27 billion, while pro-forma gearing reached 10%, the low end of management’s target range.

Eni raised its 2026 underlying production growth forecast to around 5% from 3-4%. Adjusted cash flow guidance increased to €15 billion, while gross capital spending was projected at €7 billion and net capital spending was lowered to less than €5 billion. The company expanded its 2026 share-repurchase program to €3.4 billion and maintained its planned dividend of €1.10 per share.

E’s Zacks Rank & Key Picks

E currently has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the energy sector are Par Pacific Holdings (PARR Quick QuotePARR - Free Report) , Valero Energy (VLO Quick QuoteVLO - Free Report) and FuelCell Energy (FCEL Quick QuoteFCEL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.