Exxon Mobil Corporation XOM reported first-quarter 2026 earnings per share of $1.16, beating the Zacks Consensus Estimate of $1.07 by 8.4%. The result declined 34.1% from the year-ago quarter’s level of $1.76. Total revenues and other income amounted to $85,138 million, up 2.4% year over year and 4.5% above the consensus estimate of $81,493 million.
The better-than-expected quarterly results can be attributed to higher upstream production and improved crude price realizations, partially offset by losses in the Energy Products segment.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote
Operationally, ExxonMobil achieved its first LNG at Golden Pass Train 1, which, according to it, increases U.S. LNG exports by 5% compared with 2025.
XOM Posts Solid Beat Despite Unfavorable Timing Effects
ExxonMobil posted GAAP earnings of $4.2 billion for the quarter. Management highlighted that results included an identified item of $706 million tied to Middle East supply disruptions. This prevented physical shipments associated with several hedges. Results also included unfavorable estimated timing effects of $3,883 million, largely related to mark-to-market impacts on unsettled derivatives.
Earnings excluding identified items and estimated timing effects totaled $8.8 billion, underscoring what management described as stronger underlying performance despite market and geopolitical volatility during the period.
ExxonMobil's Upstream Results Supported by Higher Realizations
The Upstream segment generated worldwide earnings (excluding identified items) of $5,737 million, with $1,574 million from U.S. operations and $4,163 million from non-U.S. operations. Net production averaged 4,594 thousand oil-equivalent barrels per day (koebd) compared with 4,551 koebd in the prior-year quarter. Management pointed to advantaged volume growth from Guyana and the Permian as key contributors.
Liquids production increased to 3,297 thousand barrels per day (kbd) from 3,139 kbd in the prior-year quarter. The increase can be attributed to higher production from the United States and Canada/Other Americas. Natural gas production totaled 7,779 million cubic feet per day (mcfd), lower than 8,470 mcfd a year ago. The decline can be primarily attributed to lower production in Asia and Europe.
In the United States, ExxonMobil’s crude realization averaged $70.12 per barrel compared with $69.41 in the year-ago quarter. Natural gas realization averaged $3.37 per thousand cubic feet, slightly lower than $3.38 in the first quarter of 2025.
For its non-U.S. operations, crude realization averaged $69.98 per barrel, higher than $68.12 in the prior-year quarter. Natural gas realization averaged $10.58 per thousand cubic feet compared with $10.17 in the first quarter of 2025. These tailwinds were partially offset by lower base volumes tied to divestments, operational disruptions in Kazakhstan and a higher depreciation expense.
XOM's Energy Products Hit by Hedge Losses and Disruptions
In Energy Products, segment earnings excluding identified items were a loss of $556 million, while earnings excluding both identified items and estimated timing effects were $2,799 million.
Operationally, Energy Products sales volumes were 5,630 thousand barrels per day. Management attributed the underlying improvement to stronger refining margins, trading and optimization benefits, and structural cost savings. The company noted that planned turnaround activity, foreign exchange impacts, scheduled maintenance and Middle East disruptions weighed on the quarter’s reported outcome.
ExxonMobil Sees Chemical Rebound While Specialty Holds Steady
Chemical Products delivered earnings excluding identified items of $110 million, lower than $273 million in the year-ago quarter, as weaker margins caused by lower realizations and higher feed costs constrained profitability. This was partially offset by volume gains linked to the China Chemical Complex start-up and contributions from structural cost savings. Chemical sales volumes were 5,358 thousand metric tons for the quarter.
Specialty Products reported earnings of $651 million and sales volume of 1,976 thousand metric tons. ExxonMobil stated record sales volume of high-value products and structural cost savings helped offset weaker margins stemming from increased feed costs, keeping segment performance broadly stable.
XOM's Cash Returns and Balance Sheet
Cash flow from operating activities was $8,705 million, and free cash flow was $2,699 million. Cash capital expenditures totaled $6,187 million, aligning with management’s full-year cash capex guided range of $27 billion to $29 billion. This reflects continued investment in advantaged developments.
As of March 31, 2026, cash and cash equivalents were $8.4 billion, and long-term debt was $33.1 billion.
Shareholder distributions totaled $9.2 billion, comprising $4,334 million of dividends and $4,868 million of share repurchases. ExxonMobil declared a second-quarter dividend of $1.03 per share, payable June 10, 2026.
XOM’s 2026 Guidance
For 2026, ExxonMobil reaffirmed plans to repurchase $20 billion of shares under reasonable market conditions.
The company expects Permian Basin production to average 1.8 million barrels of oil equivalent per day (Moebd), contributing to total upstream production of 4.9 Moebd in 2026.
XOM’s Zacks Rank and Other Key Picks
XOM currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy sector are Equinor ASA EQNR, Galp Energia SGPS SA GLPEY and FuelCell Energy FCEL. While Equinor and Galp Energia sport a Zacks Rank #1 each, Fuelcell carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Eqinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.
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.
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