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XOM Q3 Earnings & Revenues Beat Estimates on Strong Refining Margins
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Key Takeaways
ExxonMobil's Q3'26 adjusted EPS reached $4.23, beating estimates by 8.5%, while net income rose 104.2% y/y.
XOM's Energy Products segment generated $9.05B, benefiting from record refining margins and diesel yields.
ExxonMobil generated $19.11 billion in free cash flow and returned $9.4 billion to shareholders in Q3 2026.
ExxonMobil Holdings Corporation (XOM - Free Report) reported third-quarter 2026 adjusted earnings of $4.23 per share, beating the Zacks Consensus Estimate of $3.90 per share by 8.5%. The bottom line increased from the year-ago figure of $1.88 per share.
Revenues of $113.16 billion topped the consensus estimate of $103 billion by 9.9% and increased 32.7% year over year from $85.29 billion. GAAP earnings per share (EPS) rose to $3.72 from $1.76 in the year-ago quarter.
The strong results were primarily driven by record refining margins, operational efficiency and optimization activities. Higher profitability was supported by strong Energy Products performance despite disruptions in Middle East production. Upstream production totaled 4,496 thousand barrels of oil equivalent per day (Mboe/d).
ExxonMobil Holdings Corporation Price, Consensus and EPS Surprise
ExxonMobil's Energy Products segment generated adjusted earnings of $9.05 billion in the third quarter of 2026. The segment benefited from exceptionally strong refining margins as global supply disruptions constrained the availability of gasoline, diesel and other refined products.
Refining capacity disruptions in Russia and the Middle East tightened product markets, supporting stronger margins. XOM's global refining network and optimization capabilities helped capture favorable market conditions. The company achieved record global diesel yields and North American diesel volumes during the first nine months of 2026.
Energy Products sales totaled 5,753 thousand barrels per day (Mbd) in third-quarter. Global refinery throughput reached 3,735 Mbd, supported by strong utilization across the company's refining network.
ExxonMobil's Upstream Operations Face Headwinds
XOM's Upstream segment reported adjusted earnings of $7.31 billion in the third quarter. Higher commodity prices supported earnings, while production disruptions in the Middle East and increased depreciation associated with advantaged investments weighed on performance.
The company continued benefiting from production growth in Guyana and the Permian Basin. Permian output remained above 1.8 MMboe/d, supported by technology-driven improvements in recovery and capital efficiency.
Middle East disruptions constrained production availability. The company reported regional production of approximately 550 Mboe/d, while shipping restrictions delayed recognition of certain sales and revenues in the UAE.
XOM Sees Support From Chemical & Specialty Products
ExxonMobil's Chemical Products segment generated adjusted earnings of $725 million during the quarter. Record operational reliability and North American feedstock advantages supported profitability, although weaker chemical margins presented challenges.
Chemical Products sales totaled 4,888 thousand metric tons. Strong operational execution and increased demand for high-value products in Asia Pacific supported the business despite elevated regional product availability and higher feedstock costs.
Specialty Products contributed adjusted earnings of $1.28 billion, supported by favorable basestock margins. Sales volumes totaled 1,737 thousand metric tons, while the company's focus on differentiated products and structural cost reductions supported profitability.
XOM's total costs and other deductions increased 23.6% to $91.93 billion from $74.36 billion. Crude oil and product purchases rose 37.1% to $65.72 billion, reflecting the higher cost of materials purchased during the quarter.
Production and manufacturing expenses increased 11.1% to $11.22 billion from $10.09 billion. Depreciation and depletion expenses rose 5.1% to $6.80 billion, reflecting the impact of the company's expanding asset base and investments.
Selling, general and administrative expenses declined 11.7% to $2.68 billion from $3.03 billion, providing some cost relief. ExxonMobil's cumulative structural cost savings have reached $16.9 billion since 2019, reflecting continued efforts to improve operational efficiency.
XOM Records Strong Year-Over-Year Profit Growth
ExxonMobil's income before taxes increased 94.3% to $21.24 billion from $10.93 billion. The improvement reflected stronger revenue generation and favorable refining conditions, which more than offset increased operating expenses.
Income tax expenses rose 64.8% to $5.21 billion from $3.16 billion, reflecting higher taxable earnings. Despite the increased tax burden, net income attributable to ExxonMobil surged 104.2% to $15.41 billion from $7.55 billion in the year-ago quarter.
The company's overall profitability benefited from its integrated operating model, which helped capture stronger refining margins amid global supply constraints.
ExxonMobil Strengthens Quarterly Cash Generation
XOM generated $25.65 billion in operating cash flow during the third quarter, supported by strong earnings and operational performance. Free cash flow totaled $19.11 billion, reflecting cash generation after investments and other cash-flow adjustments.
The company returned $9.4 billion to shareholders, including $4.3 billion in dividends and $5.1 billion in share repurchases. Cash capital expenditures totaled $7 billion, reflecting continued investments in advantaged projects and long-term production capacity.
ExxonMobil Outlines Q4 & Full-Year 2026 Outlook
ExxonMobil expects full-year 2026 Permian production of approximately 1.8 MMboe/d. Its fifth Guyana production vessel is scheduled to begin operations late in the fourth quarter.
Middle East disruptions are expected to keep approximately 350 Mboe/d offline. Higher scheduled maintenance in Product Solutions could affect performance.
XOM expects full-year capital expenditures of $27-$29 billion and fourth-quarter corporate and financing expenses of $500-$700 million. The company plans $20 billion in share repurchases in 2027, subject to market conditions.
XOM’s Zacks Rank & Other Key Picks
ExxonMobil currently sports a Zacks Rank #1 (Strong Buy).
View the Zacks #1 Rank List
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XOM Q3 Earnings & Revenues Beat Estimates on Strong Refining Margins
Key Takeaways
ExxonMobil Holdings Corporation (XOM - Free Report) reported third-quarter 2026 adjusted earnings of $4.23 per share, beating the Zacks Consensus Estimate of $3.90 per share by 8.5%. The bottom line increased from the year-ago figure of $1.88 per share.
Revenues of $113.16 billion topped the consensus estimate of $103 billion by 9.9% and increased 32.7% year over year from $85.29 billion. GAAP earnings per share (EPS) rose to $3.72 from $1.76 in the year-ago quarter.
The strong results were primarily driven by record refining margins, operational efficiency and optimization activities. Higher profitability was supported by strong Energy Products performance despite disruptions in Middle East production. Upstream production totaled 4,496 thousand barrels of oil equivalent per day (Mboe/d).
ExxonMobil Holdings Corporation Price, Consensus and EPS Surprise
ExxonMobil Holdings Corporation price-consensus-eps-surprise-chart | ExxonMobil Holdings Corporation Quote
XOM Benefits From Strong Refining Performance
ExxonMobil's Energy Products segment generated adjusted earnings of $9.05 billion in the third quarter of 2026. The segment benefited from exceptionally strong refining margins as global supply disruptions constrained the availability of gasoline, diesel and other refined products.
Refining capacity disruptions in Russia and the Middle East tightened product markets, supporting stronger margins. XOM's global refining network and optimization capabilities helped capture favorable market conditions. The company achieved record global diesel yields and North American diesel volumes during the first nine months of 2026.
Energy Products sales totaled 5,753 thousand barrels per day (Mbd) in third-quarter. Global refinery throughput reached 3,735 Mbd, supported by strong utilization across the company's refining network.
ExxonMobil's Upstream Operations Face Headwinds
XOM's Upstream segment reported adjusted earnings of $7.31 billion in the third quarter. Higher commodity prices supported earnings, while production disruptions in the Middle East and increased depreciation associated with advantaged investments weighed on performance.
The company continued benefiting from production growth in Guyana and the Permian Basin. Permian output remained above 1.8 MMboe/d, supported by technology-driven improvements in recovery and capital efficiency.
Middle East disruptions constrained production availability. The company reported regional production of approximately 550 Mboe/d, while shipping restrictions delayed recognition of certain sales and revenues in the UAE.
XOM Sees Support From Chemical & Specialty Products
ExxonMobil's Chemical Products segment generated adjusted earnings of $725 million during the quarter. Record operational reliability and North American feedstock advantages supported profitability, although weaker chemical margins presented challenges.
Chemical Products sales totaled 4,888 thousand metric tons. Strong operational execution and increased demand for high-value products in Asia Pacific supported the business despite elevated regional product availability and higher feedstock costs.
Specialty Products contributed adjusted earnings of $1.28 billion, supported by favorable basestock margins. Sales volumes totaled 1,737 thousand metric tons, while the company's focus on differentiated products and structural cost reductions supported profitability.
ExxonMobil's Expenses Rise Despite Efficiency Gains
XOM's total costs and other deductions increased 23.6% to $91.93 billion from $74.36 billion. Crude oil and product purchases rose 37.1% to $65.72 billion, reflecting the higher cost of materials purchased during the quarter.
Production and manufacturing expenses increased 11.1% to $11.22 billion from $10.09 billion. Depreciation and depletion expenses rose 5.1% to $6.80 billion, reflecting the impact of the company's expanding asset base and investments.
Selling, general and administrative expenses declined 11.7% to $2.68 billion from $3.03 billion, providing some cost relief. ExxonMobil's cumulative structural cost savings have reached $16.9 billion since 2019, reflecting continued efforts to improve operational efficiency.
XOM Records Strong Year-Over-Year Profit Growth
ExxonMobil's income before taxes increased 94.3% to $21.24 billion from $10.93 billion. The improvement reflected stronger revenue generation and favorable refining conditions, which more than offset increased operating expenses.
Income tax expenses rose 64.8% to $5.21 billion from $3.16 billion, reflecting higher taxable earnings. Despite the increased tax burden, net income attributable to ExxonMobil surged 104.2% to $15.41 billion from $7.55 billion in the year-ago quarter.
The company's overall profitability benefited from its integrated operating model, which helped capture stronger refining margins amid global supply constraints.
ExxonMobil Strengthens Quarterly Cash Generation
XOM generated $25.65 billion in operating cash flow during the third quarter, supported by strong earnings and operational performance. Free cash flow totaled $19.11 billion, reflecting cash generation after investments and other cash-flow adjustments.
The company returned $9.4 billion to shareholders, including $4.3 billion in dividends and $5.1 billion in share repurchases. Cash capital expenditures totaled $7 billion, reflecting continued investments in advantaged projects and long-term production capacity.
ExxonMobil Outlines Q4 & Full-Year 2026 Outlook
ExxonMobil expects full-year 2026 Permian production of approximately 1.8 MMboe/d. Its fifth Guyana production vessel is scheduled to begin operations late in the fourth quarter.
Middle East disruptions are expected to keep approximately 350 Mboe/d offline. Higher scheduled maintenance in Product Solutions could affect performance.
XOM expects full-year capital expenditures of $27-$29 billion and fourth-quarter corporate and financing expenses of $500-$700 million. The company plans $20 billion in share repurchases in 2027, subject to market conditions.
XOM’s Zacks Rank & Other Key Picks
ExxonMobil currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy sector are Range Resources Corporation (RRC - Free Report) , Equinor ASA (EQNR - Free Report) and Eni S.p.A. (E - Free Report) . EQNR and E sport a Zacks Rank #1 (Strong Buy) each, while RRC carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Range Resources reported third-quarter 2026 adjusted earnings of 81 cents per share, surpassing the Zacks Consensus Estimate of 70 cents per share.
As of Sept. 30, 2026, RRC had total debt of $780.92 million and cash and cash equivalents of $12,000.
Equinor reported third-quarter 2026 adjusted earnings of $1.20 per share, missing the Zacks Consensus Estimate of $1.38 per share.
As of Sept. 30, 2026, EQNR had cash and cash equivalents of $6.30 billion.
Eni reported third-quarter 2026 adjusted earnings of $2.13 per share, surpassing the Zacks Consensus Estimate of $1.92 per share.
As of Sept. 30, 2026, E had total debt of $34.39 billion and cash and cash equivalents of $11.77 billion.